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Case Study

Intermodal logistics centre at Enfield

Container port

The Intermodal Logistics Centre (ILC) at Enfield is part of a network of existing and planned intermodal terminal facilities in Sydney and will service around a quarter of the total intermodal demand. With container trade through Port Botany expected to exceed 3.5 million TEU by 2021, the objective is to significantly increase the proportion of containers moved by rail.

The Situation

As 85% of containers originate from or are bound for a destination within 40 kilometres of Port Botany, a new road and rail container terminal is being constructed at Enfield.

On completion the ILC at Enfield will include an intermodal terminal, empty container storage facilities, warehousing, a light industrial and commercial area along Cosgrove Road, a new bridge over the RailCorp Marshalling Yard, rail connections to the mainline track and an area incorporating ecological and heritage enhancements.

Our Approach

Following the team’s work on the Port Botany Expansion project, Sydney Ports engaged Advisian to manage the procurement activities for the development of the ILC at Enfield.

We provided advice and assistance to Sydney Ports throughout the project including:

Stage 1 – to tender close – Commercial and technical adviser:

  • Development supporting information for the business case

  • Development of environmental plans and planning approval documentation

  • Development of cost estimates and risk assessments to determine the P90 value for the business case

  • Value engineering and options assessment

  • Development of master program and facilitating decisions regarding key procurement activities

  • Development of project documentation including scopes of work for heritage and archaeology, endangered species, demolition and remediation, wheel lathe corridor rail works, design and construction (early works, early contractor involvement and construct only) and interface agreements

  • Management of the registration of interest and tender process including developing the evaluation criteria

  • Preparation of Board Papers.

Stage 2 – tender close to early contractor involvement award – Procurement adviser:

  • Management of the evaluation of tenders

  • Provided an independent review of cost estimates

  • Preparation for contract execution

  • Negotiation and award finalisation

  • Early contractor involvement contract execution.

Stage 3 – Early contractor involvement - Transaction adviser:

  • Commercial adviser

  • Issue management

  • Preparation of construction documentation for main construction contract execution

  • Execution of the main construction contract.

Stage 4 - Delivery - Commercial adviser:

  • Commercial and contractual support

  • Environmental advisor

  • Review of cost assessments

  • Risk modelling and developing mitigation strategies

  • Management and advice on environmental compliance

Advisian’s Sustainability Team developed an environmental compliance reporting framework for the project that has been recognised as innovative by the Department of Planning and Infrastructure.

Results

In early 2010, Advisian completed the procurement of the demolition and remediation contracts, the design contract and the legal contract. During this stage we advised on the archival recording and relocation of a number of heritage structures on the site including a pillar water tank and a pedestrian bridge previously used for access across the old Enfield Marshalling Yards.

The ILC site is a potential Green and Golden Bell Frog (Litoria aurea) habitat. The bell frog is listed as endangered under Schedule 1 of the NSW Threatened Species Conservation Act 1995 and vulnerable under the Environment Protection and Biodiversity Act 1999. The developed site will include a community and ecological area that will contain bell frog habitat including ponds and foraging areas.
Advisian’s Sustainability Team developed an environmental compliance reporting framework for the project that has been recognised as innovative by the Department of Planning and Infrastructure. For the main construction contract, the Advisian team explored the particular requirements of Sydney Ports and as a result took a different approach, using an early contractor involvement deed. This procurement strategy was chosen due to the engineering issues with the site. This approach involved having the contractor work with both the designer and Sydney Ports as an integrated team to develop effective solutions.

The contract for the construction of the base infrastructure works was let in August 2010 and work commenced soon afterwards. Advisian continued to support Sydney Ports during the delivery phase on commercial and contractual issues, cost estimating, risk and environmental compliance.

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