Gawler Rail Electrification - Stage 2
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
The Gawler rail electrification project will see the current diesel locomotive operated line between Adelaide and Gawler electrified to increase capacity and reliability.
The tender process for the $152.5 Stage 1 of the project commenced in May 2017, however as this does not meet the threshold for ANZIP projects it has not been displayed.
The project is part of the progressive electrification of Adelaide's heavy rail network, which has seen the Seaford, Tonsley and Belair lines electrified in 2014. The project, first announced in 2008 will involve:
- installation of the overhead wiring system including masts and gantries;
- installation of a new signalling system;
- installation of an Automatic Train Protection system;
- installation of a new fibre optic communications system cable
- extension and modification of approximately 12 station platforms and other station upgrades
- procurement of new rolling stock - 15 three-car sets, and;
- service relocations, vegetation trimming and removal and other works necessary to enable the electrification to proceed.
The State Government has split the project into two stages:
- $152.5 million Stage 1 comprising Adelaide to Salisbury section of the line; and
- $462.5 million Stage 2 comprising the remaining track from Salisbury to Gawler and the purchase of 15 additional three-car train sets.
Stage 1 is fully funded by the State Government. The tender process for Stage 1 commenced in May 2017 with Registrations of Interest (ROIs) called. Expressions of Interest (EOIs) subsequently opened on 10 July and closed on 1 August 2017. In January 2018, the State Government announced that Lendlease had been awarded Stage 1. Major construction for Stage 1 is expected to begin in the third quarter of 2018.
The State Government committed $242.5 million towards Stage 2 in the 2017-18 Budget, subject to the Federal Government providing the remaining $220 million. In the 2018-19 Federal Budget, the Federal Government allocated $220 million between FY2019-20 and FY2025-26 towards the project.
In announcing the Stage 1 contract had been awarded, the State Government indicated that a funding commitment from the Federal Government would allow the contract to be extended to deliver Stage 2. As such, in July 2018 the SA Government announced it had extended the Stage 1 contract with Lendlease to include Stage 2.
The State Government expects the project will be completed by late-2020.
The newly elected SA Government has committed to establish Infrastructure South Australia, and will task them with assessing the project for funding.
In September 2018 Infrastructure Australia (IA) announced it had moved the upgrade of Gawler rail line from a High Priority Initiative to a Priority Project on its Infrastructure Priority List, following evaluation of the project's business case. IA's Project Evaluation Summary notes the Benefit Cost Ratio of the project is 1.1.
Last reviewed: 03/10/2018