New Southern Railway Stations Agreement

Project Name:

New Southern Railway (Airport Line)

Client Agency:

Rail Corporation NSW (RailCorp)

Project Description:

The project involves:

the private sector to design, construct, finance, lease and the operate and maintain four stations (Green Square, Mascot, Domestic and International Terminals at Sydney Airport);
the public sector to fund and own the Wolli Creek interchange stations, tunnels, tracks, catenary, signalling and communications systems;
the private sector to design and construct the public sector component of the project (tunnels, tracks, etc) and maintain the public sector component.

Passengers paying a Station Usage Fee (SUF) to the private sector to use its four stations in addition to RailCorp’s standard train fare.

Private Sector Partners:

Transfield Holdings Pty Limited, Bouygues SA, Transfield construction Pty Limited and Airport Link Company Pty Limited (ALC) owned by Transfield Holdings Pty Limited and Bouygues SA

Project Details:

Contract value: $673 million (the estimated design and construction cost at the time of the contract award):
- $542 million – the public sector component (tunnels, trucks etc);

- $131 million – the private sector component (four stations).
Contract term: 30-Jun-1995 to 20-May-2030
Operation began: 20-May-2000

Project Variations:

13-Oct-2005

Renegotiation of the original Stations Agreement (1995) was taken to settle disputes between Railcorp and the ALC. The Restated Stations Agreement (2005) includes provision of a capped amount payable by RailCorp to ALC, a revised profit sharing mechanism, a relaxation of the RailCorp’s performance standards and revised termination provisions.

1-Mar-2011

Heads of Agreement provided that from 7-Mar-2011 passengers will not pay a SUF at Green Square and Mascot stations (SUF is maintained at Domestic Terminal and International Terminal stations). To compensate ALC for the lost revenue RailCorp pays ALC a Shadow SUF based on an adjusted actual patronage volume and a Shadow SUF Value per passenger.