Transurban Group Ltd. · ASX:TCL
Transurban — Corporate Update (December 2021)
28 slides from Transurban's corporate update, Dec 17, 2021
Slide 1: West Gate Tunnel Project Update
WEST GATE TUNNE PROJECT UPDATE 17 DECEMBER 2021
Slide 2: Disclaimer
DISCLAIMER This publication is prepared by the Transurban Group comprising Transurban Holdings Limited (ACN 098 143 429), Transurban Holding Trust (ARSN 098 807 419) and Transurban International Limited (ACN 121 746 825). The responsible entity of Transurban Holding Trust is Transurban Infrastructur
Slide 3: Overview
OVERVIEW • Transurban has been a long-term partner to the State of Victoria since CityLink opened in 1999, investing over $11 billion on upgrades, expansions, maintenance and operating costs over time1 • The West Gate Tunnel Project is a critical infrastructure project for Melbourne, providing a vit
Slide 4: Long-Term Partnership
LONG-TERM PARTNERSHIP Over two decades of strengthening and supporting the economy of Victoria through transport, with the West Gate Tunnel forming an integral part of an efficient and growing world-class road network 1996 • Construction commenced on Melbourne CityLink Project 1999 • CityLink’s West
Slide 5: Delivering Value to Victoria
DELIVERING VALUE TO VICTORIA Supporting the local economy Enhancing transport outcomes for customers Improved community livability \ in estimated combined economic benefits for CityLink roads are twice as safe as like roads in encouraging trucks off local streets for two decades ~$20B the State of V
Slide 6: Project Update
PROJECT UPDATE
Slide 7: Dispute Background
DISPUTE BACKGROUND • In December 2017 (after two years of extensive assessment), an agreement to build the West Gate Tunnel was entered into by the project parties. The contracted total cost of the project was $6.7 billion (including Transurban’s $4.0 billion contracted contribution) and the complet
Slide 8: Agreement Outcomes
AGREEMENT OUTCOMES Key outcomes for Transurban Key contributions by Transurban • A new Completion Date has been agreed (late 2025), with tolling on the West Gate • Cost contribution (see next slide) Tunnel to commence at completion • Transurban defers any entitlement to liquidated damages until the
Slide 9: Cost Components
COST COMPONENTS Transurban estimated capital contribution • Transurban’s original proportional capital contribution was $4.0 billion of which $3.0 billion had been deployed to 17 December 2021 • Additional Transurban contribution is comprised of a $1.7 billion contribution (see below) plus approxima
Slide 10: Financial Impacts
FINANCIAL IMPACTS Funding Financial impacts • Transurban’s Contract Sum Adjustment contribution • Transurban’s Contract Sum Adjustment contribution is expected to be accounted for as capital expenditure will be funded from corporate liquidity (increasing the intangible asset) and is not expected to
Slide 11: Tunnelling Update
TUNNELLING UPDATE Construction progress Tunnelling overview Tunnelling • Two TBMs – purpose built to suit local ground • Excavation activities completed at both tunnel conditions - will be used to build almost 6.8 portals on the West Gate Freeway kilometres of tunnel from the Maribyrnong River to •
Slide 12: West Gate Freeway Update
WEST GATE FREEWAY UPDATE West Gate Freeway widening • Approximately 70% of work expected to be completed following works to be done over the intensive 2021/22 summer blitz campaign • Over 10 of 18 kilometres of new lanes built to date as part of the widening from 8 to 12 lanes and over 70% of sound
Slide 13: Port to City Update
PORT TO CITY UPDATE Port to City • Marine piling completed in the Maribyrnong River with foundations in place to support the second river crossing and ramps connecting the West Gate Tunnel to the port • Over 60% of piling foundations completed and ongoing installation of locally manufactured precast
Slide 14: Australian Construction Industry Insights
AUSTRALIAN CONSTRUCTION INDUSTRY INSIGHTS
Slide 15: Procurement Cycles in the Australian Infrastructure Industry
PROCUREMENT CYCLES IN THE AUSTRALIAN INFRASTRUCTURE INDUSTRY Dominant procurement approach has always been dynamic and heavily influenced by contemporary economic conditions Market deregulation Economic recession Mining boom High levels of investment COVID-19 • Introduction of floating exchange • In
Slide 16: Australian Infrastructure Pipeline
AUSTRALIAN INFRASTRUCTURE PIPELINE Government focus on nation building projects, economic stimulus and addressing the infrastructure deficit has resulted in an unprecedented pipeline of mega projects, presenting challenges and opportunities Value of road and rail projects under construction1 Value o
Slide 17: Track Record of Major Project Delivery
TRACK RECORD OF MAJOR PROJECT DELIVERY Project delivery history major projects delivered >15 in four markets Project Name 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CityLink* Westlink M7 Tullamarine/Calder Freeway
Slide 18: Delivery and Opportunity Pipeline
DELIVERY AND OPPORTUNITY PIPELINE Lower exposure to project delivery risk with a material pipeline of opportunities identified in core markets Committed project pipeline capex1 Opportunity pipeline • Current committed project capex representing around 6% of Enterprise Value • In additional to commit
Slide 19: Response to the Current Construction Cycle
RESPONSE TO THE CURRENT CONSTRUCTION CYCLE Transurban remains committed to its role as a preferred delivery partner for governments, taking on board experiences gained from the West Gate Tunnel Project and continuing to evolve its approach to major project delivery Industry developments Key learning
Slide 20: Traffic Update and Summary
TRAFFIC UPDATE AND SUMMARY
Slide 21: Traffic Update
TRAFFIC UPDATE1 Sydney weekly traffic 2021 vs 2019 (%) Melbourne weekly traffic 2021 vs 2019 (%) Week commencing Week commencing 3-Jan 24-Jan 14-Feb 7-Mar 28-Mar 18-Apr 9-May 30-May 20-Jun 11-Jul 1-Aug 22-Aug 12-Sep 3-Oct 24-Oct 14-Nov 5-Dec 3-Jan 24-Jan 14-Feb 7-Mar 28-Mar 18-Apr 9-May 30-May 20-Ju
Slide 22: Summary and Outlook
SUMMARY AND OUTLOOK • The West Gate Tunnel Project agreement announced today allows the project to move forward • Transurban acknowledges the situation has been disappointing for all stakeholders however we believe the agreement enables the most efficient and timely completion of the project, which
Slide 23: Questions and Answers
QUESTIONS AND ANSWERS
Slide 24: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 25: West Gate Tunnel Concession Summary
WEST GATE TUNNEL CONCESSION SUMMARY West Gate Tunnel concession • Transurban has the right to toll, operate and maintain the West Gate Tunnel from construction completion to 13 January 2045 • Toll escalation regime will be 4.25% p.a. from opening to 30 June 2029, thereafter toll escalation at CPI •
Slide 26: Glossary
GLOSSARY
Slide 27: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION 95 95 Express Lanes FY Financial year 1 July to 30 June 395 395 Express Lanes GFC Global Financial Crisis 495 495 Express Lanes GROUP Transurban Group 1H/2H First or second half of a financial year (unless specified otherwise) INCENTIVISED TARGET Contracting
Slide 28: West Gate Tunnel Project Update | 17 December 2021
WEST GATE TUNNEL PROJECT UPDATE | 17 DECEMBER 2021