Tag Archives | city rail link

SkyCity buys AA Centre to consolidate precinct control

SkyCity Entertainment Group Ltd has bought NPT Ltd’s interest in the AA Centre at 99 Albert St in central Auckland for $47 million.

SkyCity said the acquisition was consistent with its intention to consolidate control over its Auckland precinct as part of the Auckland masterplanning it’s undertaken: “The masterplan, once completed, will incorporate opportunities for further hotels, apartments, food & beverage outlets, entertainment facilities & office spaces, with the aim of having a cohesive & integrated mixed-use entertainment precinct, and will ensure that SkyCity leverages the benefits of the increased pedestrian traffic flows anticipated following completion of the city rail link.”

Image above: The AA Centre is across the Victoria St West intersection from an entrance for the city rail link Aotea Station, one full block up from Queen St and one block from the SkyCity casino & tower (at right).

The rear entrance to the SkyCity Grand Hotel & original convention centre is from Albert St, a few doors along from the AA Centre.

The 2 NZX-listed companies entered a conditional agreement on 31 August and it went unconditional last Thursday, 12 October. Settlement is scheduled for 12 July 2018.

Under the agreement, NPT must complete $2 million of capital improvements, which it began before the agreement was signed.

Bruce Cotterill.

NPT chair Bruce Cotterill said that, after allowing for those capital improvements, the transaction would increase NPT shareholder equity by $2 million over the $40.85 million valuation at 31 March.

The yield was about 7% on rent which wasn’t stated in NPT’s annual report or in this announcement. Occupancy of NPT’s share of the building at 31 March was 91.6%.

NPT owns 15 levels (12,000m²) of the 17 office floors, ground-floor retail, the through-site link to Federal St & 90 parking spaces.

The NZ Automobile Association owns the other 2 office levels, some ground-floor retail and a few parking spaces.

Mr Cotterill said: “The sale of this property represents a first step on the path to repositioning NPT. We have achieved a very good price, as compared with current book value, and the 9-month settlement period allows us to maintain current profit & distribution forecasts through to 31 March 2018 while we progress the board’s broader plans for NPT.

“The board is intending to update shareholders on its proposed strategy for the future of NPT in the coming weeks. The sale proceeds will be used to invest in the purchase of assets where we can see an opportunity to add value.”

SkyCity expected the acquisition to be “marginally earnings accretive” from its 2019 financial year. The company will fund the acquisition from existing bank facilities.

Attribution: NPT & SkyCity releases, NPT annual report.

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Tunnel dig starts on Albert St

Work began on Monday on bulk excavation for the city rail link cut-&-cover rail tunnels under Albert St in downtown Auckland.

City Rail Link Ltd project director Chris Meale said it was a milestone for the project: “This work marks a significant point in the construction process as we will start to see the tunnels taking shape. It will be exciting & challenging work from an engineering perspective, as we build rail tunnels below groundwater level, while maintaining surface-level access to Albert St for foot & vehicle traffic.

“The bulk excavation is also providing employment opportunities with about 50 people working on site. This is likely to increase to 80 by the end of the year, once tunnel box construction & waterproofing works are underway, with many being workers employed by local sub-contractors.”

The excavation represents about 10% of the 3.45km length of the twin-tunnel underground rail link, and involves digging 18m (about 5 storeys) at the deepest (southern) point, using long-reach excavators above ground and smaller machinery inside the reinforced trench. The tunnels will then be constructed with a cast concrete floor, walls & roof before the trench is backfilled.

The work will be undertaken progressively from Wyndham St at the southern end to Customs St at the northern end. Excavation at the southern end is expected to be complete by October this year and the northern by the middle of next year.

Construction of the tunnel box is expected to start late this year and be completed by late 2018.

By spring 2019, this section of Albert St will be reinstated with a new road surface, bus lanes, widened footpaths & street furniture.

For those interested in watching the big dig, CRL & contractors the Connectus joint venture (McConnell Dowell & Downer) have provided viewing windows at the Wyndham St pedestrian crossings.

Cut-&-cover construction is being used at each end of the CRL tunnels – between Britomart Station and the future Aotea Station and, later, where it connects to the western line at Mt Eden. Between Aotea & Mt Eden stations, the tunnels will be between 13-42m below ground and bored using a 7m-diameter tunnel boring machine.

The city rail link is jointly funded by the Government & Auckland Council and is expected to be completed in 2023-24. Their joint venture company, City Rail Link Ltd, took over the project on 1 July.

Image above: Looking north along the CRL tunnel route on Albert St.

Link: CRL cut-&-cover tunnel excavation

Attribution: Company release.

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Last preparations start for rail tunnel excavation

Auckland’s city rail link project entered the final stage of preparation works on Albert St last week before tunnel construction works begin.

The top 1.5m of road surface is being removed on the eastern side of Albert St between Wyndham & Swanson Sts before installation of the second half of the temporary steel work required to support the walls of the trench in which the future rail tunnels will be constructed.

Auckland Transport said: “Any utility services that remain in this top portion of the road will be temporarily supported on the steel work to ensure there is no disruption to local residents & businesses.”

In a few weeks, a temporary deck will be constructed over the top of these steel struts, which will provide working room over the top of the trench for excavators & haulage trucks.

“A lane of traffic will be maintained in each direction throughout these works.

“On the remainder of Albert St between Swanson & Customs Sts, work continues to tie together & brace the 20m-deep piles installed to support the trench walls.

“Excavation also began last week on the third portion of the traffic deck being constructed at the Customs/Albert St intersection. When all 4 sections of the deck are completed in September, they will form a bridge structure that spans the entire intersection, allowing all 4 traffic lanes to be re-established while the rail link tunnels are constructed underneath.”

Auckland Transport, city rail link web page

Attribution: Auckland Transport release.

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3 shortlisted for city rail link lines tender

3 companies have been shortlisted to tender for linewide systems integration, testing & commissioning for Auckland’s city rail link (contract 7).

Project director Chris Meale said on Monday there were 8 expressions of interest from international parties for the work and 3 had been selected to move to the phase of request for tender.

They are:

  • John Holland NZ Ltd
  • Laing O’Rourke Australia Construction Pty Ltd, and
  • RCR Infrastructure (NZ) Ltd

They’ll have 3 months to tender. Mr Meale said that, following evaluation, the successful company was likely to be appointed in the last quarter of this year.

The contract will be for the systems that include tracks, power systems, communications, controls, ventilation & signalling from Britomart, through the city rail link and connecting to the western line at Mt Eden Station.

Attribution: Auckland Transport release.

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Valerie the tunnel borer lines up for a new stretch

Valerie – the 2m-wide tunnel boring machine named in honour of the strength of Olympic shotput champion Valerie Adams – is about to begin the next stage of an underground journey through downtown Auckland for the city rail link.

The machine will simultaneously excavate & install a new stormwater pipe under Albert St.

It’s completed the first 290m of tunnelling & pipe-jacking work between Victoria & Swanson Sts and is being refurbished in the shed at Victoria & Albert Sts in preparation for the next stage of its journey. It will be lowered down the shaft to begin the final 200m stretch towards Wellesley St, and is expected to arrive there in April.

Project director Chris Meale said the stormwater diversion was needed before the cut-&-cover tunnel construction of twin tunnels can be delivered by Connectus, a McConnell Dowell & Hawkins joint venture.

A smaller tunnel boring machine is working under Victoria St, diverting the Orakei sewer main and enabling the existing sewer to be strengthened under the future midtown Aotea Station.

The city rail link will join Britomart & the city centre to the western line near Mt Eden. Construction began in December 2015.

The project, now a joint venture between Auckland Council & the Government, has tender documents out for major components. Expressions of interest were sought at the start of February for the design, procurement, installation & commissioning of all tunnel track work & rail systems between Britomart Station & the western line at Mt Eden.

City rail link

Attribution: Company release.

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Tender documents go out for rail link tunnels & stations

The first tender documents for the largest component of Auckland’s city rail link project – the construction of the tunnels & new stations – were released to the industry yesterday, a fortnight after expressions of interest were sought for the design, procurement, installation & commissioning of all tunnel track work & rail systems between Britomart Station & the Western Line at Mt Eden.

2 new stations will be built as part of the underground rail line linking Britomart with the existing western line near Mt Eden. The new stations will be near Aotea Square (artist’s impression at top), with entrances at Wellesley & Victoria Sts, and a station in Mercury Lane, just off Karangahape Rd. The Mt Eden train station will be extended & redeveloped. Associated works are already underway around downtown Auckland.

An artist’s impression of the new Karangahape station, which will be the deepest at 30m below ground.

Project director Chris Meale said yesterday the 2m-wide tunnel-boring machine simultaneously excavating & installing a new stormwater pipe under Albert St had finished the first leg of its journey. The 9-storey-high piling rig working in Albert St has dug over 140 of the 376 piles required.

An artist’s impression of the planned redeveloped station at Mt Eden.

The tunnels & stations contract will be procured using a design & construct model with a lump sum price based on a bespoke contract.

Attribution: Auckland Transport release.

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Auckland Council’s rail link scores top marks from Government’s project monitors

On a scale of well to badly managed major projects – green through amber to red – a Treasury report issued yesterday said Auckland’s city rail link again scored a green, but Housing NZ’s programme to accelerate redevelopment of its land in Auckland to deliver affordable housing only scored an amber.

The new interim Major Projects Performance Report for the period to November 2016, released yesterday, covers 53 complex major projects across government – and beyond, because the city rail link only became a partly Government project last September. All up, the projects have a whole-of-life cost of $37 billion.

The Treasury report lists Treasury & the Ministry of Transport as the Government agencies involved in the rail link project. Until late last year they were on the outside, with work already underway at multiple points around the central business district. The Government, which had rejected former mayor Len Brown’s insistence on an earlier schedule to complete the project, joined as a 50:50 partner last September.

On Housing NZ’s redevelopment programme, the report says: “The focus continues to be on finalising the programme business case, clearly defining costs & benefits for the programme, and finalising governance & delivery arrangements in advance of Cabinet decisions. A draft business case has been to the Housing NZ Corp board for consideration & comment.”

That’s back to front: Work has started, negotiations have been completed for some developments – and the business case is still on its way?

The Government issued its first major projects performance report on 30 November 2015 and scored an immediate hit in Christchurch: Earthquake Recovery Minister Gerry Brownlee was quoted in the Press dismissing the report and calling it “utter tripe”, and saying the findings showed the “arrogant bureaucratic attitude” Wellington-based departments had toward Christchurch, the report had been produced by book-keepers and “They should spend more time book-keeping rather than trying to second-guess the Government’s strategy”. He found the report, which at that point he hadn’t read, “entirely disrespectful” and said funding for the projects was already in place.

Finance Minister Steven Joyce made out yesterday the Government was doing far more than normal; building consent figures out yesterday indicate a slowdown in government works (but not all these major projects are building-related).

Mr Joyce said: “The Government is in the middle of our biggest ever infrastructure spend. We are investing billions of dollars to construct hospitals, schools, roads & courts, provide equipment for our armed forces and develop ICT capabilities to transform public services.

“These investments are instrumental for the provision of quality public services for our growing country, and it is important that they are delivered well. Transparent reporting is a key part of ensuring agencies lift their performance in investment management.”

In the projects report, 90% have been assessed as amber or better, 4 as amber/red and one as red. “Overall, there is an increase in the proportion of projects moving towards green,” Mr Joyce said.

The red & amber/red rated projects are:

  • Anzac frigate systems upgrade – Defence (red)
  • Lincoln University/AgResearch Stage 1 building project
  • Maori land service – Te Puni Kokiri
  • Transforming the system of service delivery programme – Department of Internal Affairs, and
  • National bowel screening programme – Ministry of Health.

The police human resource management information system project was rated red in the previous period and has improved to amber.

2 projects are close to completion and no longer require monitoring: the Christchurch schools rebuild programme and the Burwood Hospital redevelopment.

The Canterbury Public Sector Quarterly Rebuild Report content is now included in this report to provide the public with a single source of information about the Canterbury rebuild recovery.

The interim report covers the period July–November 2016 and was finalised before the Kaikoura earthquakes on 14 November.

Interim major projects performance report to November 2016

Earlier stories:
19 January 2017: Building consent highs still don’t match migrant demand
27 July 2016: First ratings out on government agencies’ management
1 December 2015: Major project transparency brings Christchurch consternation

Attribution: Treasury documents & release.

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Expressions of interest sought for next rail link package

Auckland Transport sought expressions of interest yesterday for the entire city rail link project beyond works already underway at Britomart, Downtown & Albert St.

The contracts cover design, procurement, installation & commissioning of all tunnel track work & rail systems between Britomart Station and the Western Line at Mt Eden. The work involves the provisioning of track slab, track, overhead line, signalling, control systems, tunnel ventilation, fire strategy & communications system.

City rail link project director Chris Meale said the successful contractor would be responsible for the integration of the systems with the existing operations at Britomart & Mt Eden and the new tunnels & stations being built for the rail link.

The documents are the first to be released to build the project past its current Britomart & Albert St sites, and have been prepared as a result of the agreement between the Government & Auckland Council in September to jointly fund the project.

Mr Meale said the C7 systems package would be procured using an early contractor involvement model, followed by a design & construct contract.

Other packages to be released this year include one for the construction of the tunnels and new city, Karangahape & Mt Eden stations, and a package for a stormwater diversion in Mt Eden.

“The new Britomart entrance is in place so we can start building the tunnels, the new stormwater pipe in Albert St is reaching the halfway stage and a third of the piles for the tunnels in Albert St have been completed. Now we are looking further afield to Mt Eden.”

Auckland Transport, city rail link
Contract procurement

Attribution: Auckland Transport release & website.

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Roche to head rail link company

Auckland Council & the Government have appointed Brian Roche as the establishment chair of City Rail Link Ltd.

Brian Roche.

Mr Roche had already announced in August he intended to leave his job as group chief executive of NZ Post Group next April. He retired in June as a non-executive director of Kiwibank Ltd, but also chairs Antarctica NZ, Hurricanes GP Ltd, the Government’s Major Events Investment Panel, Tait NZ Ltd and Wellington Gateway Partnership, and was briefly a director of the general partner of Gareth Morgan Investments LP in 2014.

Before taking up his NZ Post job in January 2010, Mr Roche was a senior partner at accountancy firm PWC. He has a Bachelor of Commerce & Administration (Victoria University) and is a fellow of the NZ Institute of Chartered Accountants.

Auckland mayor Phil Goff said today Mr Roche’s extensive background in the public & private sectors, including his current role with Transmission Gully, would be a welcome addition to the city rail link project.

The city rail link, now under construction, will extend Auckland’s passenger rail system through Britomart to connect to the existing regional rail network at Mt Eden.

Britomart will become a through station and new stations are being built near Aotea Square & Karangahape Rd, whil the Mt Eden station will be redeveloped.

The rail link will have twin 3.4km-long tunnels up to 42, below the city centre streets. Estimated opening date is 2023.

Auckland Council & the Government signed the CRL heads of agreement in September that confirmed:

  • a funding arrangement where the council & the Crown will each pay half of the total capitalised costs of the project
  • the establishment of a company (City Rail Link Ltd) which will be responsible for the delivery of the project on behalf of both parties
  • a joint share in development opportunities arising from the project
  • Auckland Transport has a critical role as Auckland’s key transport entity, and will assist the CRL company to deliver its objectives
  • KiwiRail has a formal role in ensuring the city rail link’s seamless interface with the wider rail network, including freight.

City Rail Link Ltd will have 5 directors, including the chair, who are appointed jointly by the council & the Government. Mr Roche will assist with the appointment of the other 4 directors.

Attribution: Joint release.

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City rail link funding agreement signed

The Government & Auckland Council signed their 50:50 agreement yesterday for funding of the city rail link, now costed at $2.8-3.4 billion.

The council has been running the project through council-owned Auckland Transport. Under the new agreement, it will be managed by a new jointly owned company, City Rail Link Ltd. Auckland Transport will continue to deliver technical & operational aspects.

The agreement allows the tendering process to begin for main works, distinct from the preparatory works being undertaken so far. Its main competition for contractors will be the bigger Sydney & Melbourne Metro projects.

As well as sharing the cost, the council & government (described as sponsors) will share development opportunities arising from the project.

The heads of agreement contains broader funding, governance & risk management arrangements and will be followed by a more detailed sponsors’ agreement. Under that agreement, Government money is expected to flow as early as 2017. The project is scheduled for completion by 2023-24.

The 3.4km double-track underground train line will run from Britomart station in downtown Auckland, around to Aotea Station on Albert St, up to another new station at Karangahape Rd and through to an upgraded Mt Eden Station.

By providing a through service, it will double the capacity of the metropolitan rail network.

In business cases in 2010-11, the construction cost was put at $2.4 billion. Auckland Transport, in its 2015 business case, estimated the cost in a range of $2-3 billion. After more detailed design work, Auckland Transport raised its estimate to $2.8-3.4 billion – still subject to changes.

Attribution: Council & ministerial releases.

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