Transport for NSW - Zero Emission Buses

Scope: Develop Local Industry Strategy

Industry: Government / Transport

Project Cost: Multi-Billion

Zero Emission Buses (ZEB) is a multi-billiondollar program created by the New South Wales Government to transition it’s 8,000 plus diesel and CNG public transport bus fleet to zero emissions technology.

The program is being delivered by the Transport for NSW (TfNSW) Infrastructure and Place Business Unit, and will see Greater Sydney fully transitioned by 2035, Outer Metropolitan regions by 2040 and regional NSW by 2047.

8,000 Buses to transition

6 weeks to deliver

Overview

As part of the initial project start-up, the team at TfNSW, along with their consultants, began working on the development of the economic business case for the ZEB program. This business case had been in progress for a considerable amount of time, and throughout the review process, TfNSW had highlighted the importance of incorporating enhanced local content into their final submission.

In early 2022, Hughes et al (HEA) were engaged by TfNSW to provide a third-party subject matter review into an existing chapter of the ZEB business case that related specifically to local content and the development of local industry capability and capacity and to assist them with the development of a local industry strategy for their ZEB project.

In addition, the HEA team was tasked with conducting an in-depth analysis of the Australian bus manufacturing sector, with a focus on identifying current issues related to the transition to battery electric buses. The aim of this analysis was to provide valuable insights and assist Transport for NSW in formulating effective strategies. Given the existing project timeframe commitments, the review and strategy development needed to be completed within an expedited timeframe.

The advice input requested by TfNSW extended into local content matters relating to procurement packaging and contracting strategy to optimise local content outcomes from future ZEB program tenders and panel arrangements.

A vital element of HEA’s contract delivery strategy was our ability to connect and subcontract a technical specialist to drive the highly specialised market appreciation and local content contestability and deliverability review. This ensured TfNSW was benefiting both from our extensive local content engagement experience and the experience and expertise of a market specialist.

    1. Local content processes designed for regional infrastructure projects work just as well for urban manufacturing projects.

    2. Engagement of technical and commercial specialists can provide more in-depth analysis into the implications to State and National manufacturing.

    3. Contestability Workshops play a vital role in the local content process, fostering positive and respectful challenges to conventional thinking - resulting in improved outputs.

  • HEA were tasked with undertaking analysis of the Australian bus manufacturing sector to identify contemporary issues in the transition to battery electric buses and to assist TfNSW with the formulation of strategies to increase local Industry participation.

    Initial involvement saw the HEA team review existing market analysis to develop a detailed understanding of the issues and challenges facing the bus manufacturing sector in Australia as it transitions from diesel to electric bus technology. However, given both the timeframes and the maturity of the TfNSW business case development, the decision was quickly made to engage a specialist subcontractor for HEA's network of local content professionals to ensure we achieved the best client outcomes within the compressed timeframe.

    HEA engaged the services of Adam Gill, who was both local to the program and had significant commercial and local content experience in buses, batteries, battery recycling, and renewable technology implications. An experienced and senior commercial manager in his own right, Adam, brought real acumen to the HEA team and client engagement approach.

    Collaboration is at the heart of everything we do and to that end at HEA we recognise the benefits of collaborating with industry specialists. Therefore, since late 2021, HEA has been developing a range of systems, tools and practices that make it easy to support specialist subcontractors undertake work in both their areas of technical expertise and within their own regions across Australia.

    TfNSW were very happy with the result of the project, and this was in large part due to HEA providing a local content framework that supported and enabled a specialist subcontracted advisor to undertake the scope smoothly.

  • A successful ecosystem is one built on open and transparent communication, a consistent improvement of practices and approaches and a system framework within which to work.

    The importance of ecosystems was underscored in the delivery of this project because of the need to deploy HEA processes to deliver a detailed local content task, and the need to bring on a specialist subcontractor with specific technical expertise.

    HEA has used Basecamp since January 2021 and have templated and developed a range of local content strategies for a whole range of local content scenarios. Our cumulative experience and knowledge is captured within this system which makes it easy to collaborate around project deliverables and timelines. The use of the HEA Basecamp system enabled the HEA team to review documentation, attend meetings and update the entire project team quickly, and more importantly accurately effectively and efficiently.

    We are also dedicated to continuous improvement, and as such, we take the time after each projects completion to evaluate what worked well, areas for improvement, and identify future implementation. Therefore, when we utilise our existing ecosystems and delivery frameworks, our clients are benefiting from the wealth of experience and knowledge that goes into developing them.

    HEA also use Replicon to manage time spent on client tasks and engaging subcontractors. This system makes it easy to commercially engage specialists and then track budget to time and scope outcome.

    These are examples of how HEA takes an ecosystem approach to delivering local content strategies. To be successful, local content strategies need to be collaborative because they rely on multiple functions to input information, aligning with local or technical specialists and working together with key stakeholders to co-design and deliver local content outcomes.

  • HEA undertook several stakeholder engagement sessions to develop our understanding of the TfNSW procurement strategy and history. These sessions enabled the HEA team to better identify how the TfNSW Standing Offer Panel could continue to support both a competitive bus manufacturing sector and its local content objectives for the transition to battery electric buses.

    The HEA team undertook a comparative analysis of interstate and global local content practice in bus manufacturing and reviewed NSW procurement policy and practice as applied to ZEB's, their batteries and their maintenance facilities. A sensitivity analysis was also undertaken to determine economically and socially accretive strategies that could be positively leveraged from the TfNSW ZEB project.

    The analysis and work in progress also provided a basis for several briefing notes and TfNSW updates.

    The combined understanding of the bus manufacturing sector, technical analysis of contestability of battery electric bus technology, key market participants, local industry capability, and HEA comprehension of the TfNSW procurement strategy, allowed the HEA team to develop clear recommendations, all supported by modelling and research-based evidence to TfNSW.

    This project resulted in providing TfNSW with informed strategies and options, and the basis of a cohesive strategy to engage industry, sustain the bus manufacturing sector (through technology transition), and further generate broad socio-economic benefits for NSW and Australia.