MAIN ROADS WA & LOCAL GOVERNMENT 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE AND ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT COMMON NETWORKS COMMON PROBLEMS COMMON SOLUTIONS? Menno Henneveld Consulting 14th May, 2015 Melbourne, VICTORIA

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT OUTLINE OF PRESENTATION The Importance of Roads Managing WA’s Road Networks Major Issues and Challenges of Roads Road Funding in WA State Funds to Local Government Road Asset Management Achieving Value-for-Money Integration and Collaboration…the common solution

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting MAIN ROADS WA & LOCAL GOVERNMENT 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE THE IMPORTANCE OF ROADS A century of travel Taking roads for granted The importance of roads in Western Australia Roads: Local Government’s largest assets

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT A CENTURY OF TRAVEL

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT THE IMPORTANCE OF ROADS NEPAL EARTHQUAKE April 2015 TYPHOON HAIYAN PHILLIPINES 2013

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting MAIN ROADS WA & LOCAL GOVERNMENT 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE THE IMPORTANCE OF ROADS JAPAN EARTHQUAKE MARCH 2011 Joban Expressway

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT BRISBANE FLOODS 2011

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT THE IMPORTANCE OF ROADS WA BUSHFIRES ROLEYSTONE 2010

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT WA’s RESOURCES SECTOR Over-Size Over-Mass Loads

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT AGRICULTURE AND THE WA ROAD NETWORK

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT WA ROADS AND TOURISM

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting MAIN ROADS WA & LOCAL GOVERNMENT 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE ROADS – LOCAL GOVERNMENT’S LARGEST ASSETS

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT WA’S ROAD NETWORKS

WA’s ROAD NETWORKS MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting MAIN ROADS WA & LOCAL GOVERNMENT 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE WA’s ROAD NETWORKS

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting MAIN ROADS WA & LOCAL GOVERNMENT 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE PROFILE OF STATE ROAD NETWORK State Road Network 2.5m population 17,800km 830 Traffic Lights 2068 Bridges Metro Perth 1.6 m population 2552 lane km 793 traffic lights 712 structures

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT PROFILE OF WA ROAD NETWORKS LENGTH OF ROADS National Road Network …………….. 4,902km State Highways ……………………… 6,041km Main Roads …………………………... 7,082km Local Roads …………………………131,272km Other (forestry, National Parks) …. 38,000km VALUE OF NETWORK Main Roads WA ……………………… $42.2 billion Local Government ………………….. $13.0 billion

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT ISSUES AND CHALLENGES OF ROADS Road funding Road safety and increasing road toll Asset management Traffic management and increasing congestion Population growth and car ownership Sustainability Community expectations Regulatory impacts Use of technology Integration with other forms of transport Growth in Freight Task and HV access

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT FACTORS CONTRIBUTING TO ROADS ISSUES Governance structure for responsibility of roads Some parts of network in poor state of repair Growth in vehicles and distance travelled No incentives to provide HV access Planned maintenance competes with other demands Ever growing maintenance backlogs Reduced capital and maintenance funding Lack of intermodal transport planning Shortage of information to plan networks

FEDERAL FUNDING OF ROADS IN WA Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT FEDERAL FUNDING OF ROADS IN WA PROGRAM FUNDING ($ million) PERIOD National Projects: On-going New Projects Off network projects Maintenance Total 36.5 1181.0 147.0 698.0 $2452.0 2008/9 – 2013/14 Roads to Recovery 238.0 Black Spot 7.8 2010-2011 Financial Assistance Grants 226.0 2009 - 2010

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT EXPENDITURE ON ROADS IN WA

EXPENDITURE vs REVENUE ON ROADS IN WA Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT EXPENDITURE vs REVENUE ON ROADS IN WA

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT MAIN ROADS WA 2013-2014

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT SOURCES OF LOCAL GOVERNMENT ROAD FUNDS

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT MAIN ROADS WA 2013-2014

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT LOCAL GOVERNMENT EXPENDITURE ON ROADS IN WA

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT PRESERVATION NEED AND EXPENDITURE GAP

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT INFRASTRUCTURE REPORT CARD FOR ROADS IN WA Engineers Australia 2010

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT STATE FUNDSTO LOCAL GOVERNMENT IN WA

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT STATE FUNDS TO LOCAL GOVERNMENT MANAGEMENT STRUCTURE

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT ASSET MANAGEMENT CHALLENGES Changing approach to Maintenance Contracting Availability of funding to deliver future maintenance at an acceptable level of service Diminishing residual service life of assets Inadequate skilled human resource pool (Attraction and retention) Increased road use shortening asset life Ability to attract viable contractors Retain and/or rebuild regional presence and capability

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT EVOLUTION IN ROADS ASSET MANAGEMENT Builder and Maintainer Network Manager and Operator Road User Services

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT EVOLUTION OF MAINTENANCE DELIVERY Day Labour Workforce Term Maintenance Contracts Term Network Contracts Integrated Service Arrangements Delivery Method Little control Outsourcing “Hands off” Delivery Method Total Control Select contractors Quality Assurance Delivery Method Total Control Culture of excellence and improvement Partnership 1906 1995 1999 2010

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT THE ISA CONCEPT Joint management Main Roads and private sector Providing service delivery using an integrated (collaborative) approach Direct cost, open book reimbursement, with a risk/reward regime (portion of profit at risk) Scope of services tailored for each network Each ISA operates with a joint management team and operational staff comprising Main Roads and the Integrated Services Provider (ISP) Procure a range of service providers in a fully integrated manner, akin to ‘in-sourcing’

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT REGIONAL SUSTAINABILITY AND THE ISA’s Collaborative relationships Insourcing private sector partners More than just a maintenance contract Services include: Road network operations Operational asset management Maintenance delivery and capital works to $3m Technical engineering, project and contract management services

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT MAIN ROADS OBJECTIVES FOR ISA’s Control asset management decisions Achieve best practice in operational asset management and network operations Build capability and capacity Innovation and improvement leading to outstanding performance Value for money Main Roads as an informed purchaser Potential for LG involvement

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT ISA NETWORK COVERAGE Integrated Service Arrangement Integrated Service Provider Kimberley ISA DownerMouchel Pilbara ISA Leighton Mid West & Gascoyne ISA Goldfields-Esperance ISA Abigroup Wheatbelt ISA Leighton / Opus South West & Great Southern ISA Fulton Hogan Metropolitan

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT KEY CRITERIA DEFINING VfM ON ROADS Whole-of-life costs Safety (Road Safety and WHS) Service delivery methods Local community impacts Road user expectations Economic impact Legacy value Environmental impact Trust and confidence in Main Roads

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT ACHIEVING VALUE-FOR-MONEY What are the value expectations? Integration and collaboration Improving governance arrangements Collaboration on procurement Taking a risk management approach to asset management Applying a Safe Systems approach to design Re-thinking approaches to sustainability

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT INTEGRATION AND COLLABORATION ACROSS GOVERNMENTS Optimising current arrangements Developing the State State Funds to Local Government Agreement Expanded role for Regional Road Groups Building on ISA Opportunities Sharing resources Regional Sustainability

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT INVESTING IN THE FUTURE TOGETHER Local Government manages 88% of the network Allocated 27% of Vehicle Licence Fees Agreement represents 25% increase in funding in real terms over five years 20% of Local Government road expenditure provided by the State Planning as well as operations opportunities

MAIN ROADS WA & LOCAL GOVERNMENT Menno Henneveld Consulting 2015 NATIONAL LOCAL GOVERNMENT INFRASTRUCTURE & ASSET MANAGEMENT CONFERENCE MAIN ROADS WA & LOCAL GOVERNMENT When it comes to the future there are three types of people: Those who let it happen Those who make it happen Those who wonder what happened John M Richardson Jr