Identifying Early-Stage Risks to High-Speed Rail: A Case Study of the Sydney–Newcastle Corridor, Australia
Abstract
:1. Introduction
1.1. Introduction to Research Topic and Significance
1.1.1. High Speed Rail (HSR) Status in Australia
1.1.2. Research Environment
1.2. Research Justification and Objectives
- Identify barriers that specifically prevent the realisation of HSR in Australia;
- Document potential challenges unique to implementing HSR in the Sydney-to-Newcastle corridor;
- Develop industry-ready recommendations to overcome identified barriers and facilitate successful HSR implementation.
1.3. Research Scope
2. Literature Review on the Australian HSR Risks and Barriers
2.1. Alluring Potential of High-Speed Rail in Australia
2.2. Cost Barriers in Implementation and Delivery
2.3. Engaging the Private Sector for Successful Delivery
2.4. System Integration and Feasibility
3. Materials and Methods
3.1. Primary Survey Data
- Participant Information—The survey could be undertaken anonymously to reduce the barrier to participation. Hence, tracking the participants’ information was crucial for making informed analysis decisions;
- General Questions—These questions pertained to the HSR domain in general;
- HSR Benefits—These questions aimed to capture the general benefits participants expected to realise following the implementation of HSR. This was also used as a control to capture any biases due to individuals who benefit an extraordinary amount;
- Barriers to Implementation—This section aimed to capture the participants’ perceived barriers to HSR implementation;
- Concept Phase Risks—This section aimed to capture project management-related risks, particularly from participants working in the industry’s management space;
- Contract Structuring—This section aimed to capture the participants’ sentiment towards a PPP and alternative traditional procurement methods;
- Other categories of questions focused on nuanced barriers to the implementation of HSR.
3.2. Primary Interview Data
- The interviews consisted of 21 questions developed using the Marketing Scales Handbook by Bruner [47] to avoid further unintentional biases. To further mitigate bias, questions were piloted and reviewed for neutrality, recognising that the research team’s engineering background could influence framing or interpretation. They comprise the following consistent question framework with all participants asked the same set of core questions across three themes: General Questions—These were preliminary questions surrounding the HSR domain in Australia;
- Concept Phase Risk Questions—These questions were to capture the notable management risks and concerns associated with a mega project of this nature;
- Other categories of questions focused on nuanced barriers to HSR implementation.
3.3. Implementation Limitations and Risks
3.4. Ensuring Validity of Primary Data
3.5. Data Analysis
- Pairwise Comparison: Used to evaluate the relative importance of different barriers, such as “funding challenges” and “regulatory hurdles”, using a scale from 1 to 9. This process captures nuanced opinions and facilitates a comprehensive understanding of each barrier’s significance [53];
- Numerical Representation: The pairwise comparisons are converted into priority weights, providing a clear quantitative measure of how each barrier is perceived relative to the others. For example, a higher weight for funding issues indicates greater concern among stakeholders;
- Synthesis of Results: AHP synthesises the results to generate a ranked list of barriers, enabling decision-makers to prioritise actions and strategies that address the most critical challenges to HSR implementation [54].
4. Results on Australian HSR Risks
4.1. Survey Results
4.1.1. Survey Overview
4.1.2. Analysing Survey Data Using the AHP Method
4.1.3. Limitations of the AHP Data Analysis Method
- Limited Criteria for Weightings: Only three experience-based criteria were used as weightings: experience, position, and sector. However, these may not necessarily correlate to the most meaningful insights, as higher experience or position does not always result in more relevant responses. For instance, someone with nine years of experience may offer more insightful responses than someone with eleven years, but the weighting will automatically favour the latter due to the multiplier;
- Subjectivity and Repeatability: Given the subjective nature of participants’ responses, AHP results are not fully repeatable [57]. While the overall findings would likely be similar, slight variations in individual judgments could alter the final rankings;
- Condorcet’s Paradox: Condorcet’s paradox can arise when aggregating group data in AHP, where individual preferences, even if rational, result in a cyclical or contradictory group preference. This paradox complicates identifying a majority preference and can obscure the prioritisation of criteria, creating challenges in forming a clear consensus on key barriers [58].
4.2. Interview Results
4.2.1. Interview Overview
4.2.2. Analysing Interview Data
5. Discussion of the Australian HSR Risks
5.1. The Benefits of Implementing HSR in Australia
5.2. Concept Phase Risks Preventing Realisation
5.2.1. Cost and Time Estimates
“strategic supply chain management… we’re doing a lot, but as you know, we’re not the only game in town. We have basically locked up the entire market on concrete”.
P1 also agrees, denoting that“if you have too much work at one time, then resources get down, prices go up, and your project goes up”.
“At least an 18-month statutory period to try and go through it. So, by the time you’re awarding contracts, you’ve bought all the properties you can, and you’re generally in the Land and Environment Court with the larger landowners—the ones who will hire armies of lawyers to challenge your valuations”, noted by P2.This process can be highly unpredictable, with P1 adding, “These are quite volatile things”.
5.2.2. Construction Risks Transfer
“I had a conversation with a counterpart in Victoria several years ago now, and his assessment was whatever the cost estimate is, you need 60% of that in contingency. That’s an ungodly number that no treasury would ever invest in. But you have a look historically and a lot of like Flyvberg’s insights, and yes, 60% is probably not bad”.
“If we look at New South Wales rail projects in general, and Victorian ones and Queensland ones, they consume, anecdotally, I would say, at least a third of their contingency by the time they get through tunnelling”, P2 observes.
“The government’s passing a significant amount of risk to the contractors, and the contractors are having to swallow that risk”, says P4.
“Oftentimes, in a lot of cases like [utilities], they don’t have sophisticated BIM models for their entire network. And so inevitably, you start on a bit of a back foot because you go to market for your tunnelling packages and government, the client, ends up on risk for so much because the tunnelling contracts, like, you give us a guarantee that this is all the utilities and you can’t“, explains P2.
5.2.3. Political Risk
However, P6 also noted that“relying on the marginal seat analysis of politicians is a very unstable way to plan a project because with 3 and 4 year terms of governments, unless the project’s sustainable in its own right, the marginal seat analysis is very transient and can change very quickly”.
5.3. Going to Market
P2 discusses the experience with their rail project:“For each of our stations, we went out with an 800-requirement specification. It was massive, with a 6-star Green Star rating, and it was very extensive. Naturally, the price came back horrifically expensive”.
“What we’re trying to do is say we want a safe, functional, high-frequency railway. Please price that, and then talk to us about a two-story development. Give us an option for a six-station development, and then provide your highest and best use offer”.
- Essential requirements must be met that are non-negotiable for the project’s success;
- Should have: Key features that are not critical; they can be deferred if necessary;
- Could have: Desirable features that can be included if time and resources permit;
- Won’t have: Features that will not be implemented in the current project phase due to constraints or strategic decisions.
5.4. Risk Matrix
5.5. Summary of Recommendations
- Justification: As presented in Section 5.1, previous HSR feasibility studies in Australia have struggled due to a failure to capture the benefits of regional economic development adequately. The analysis presented in this research highlights the significant advantages that a Sydney to Newcastle HSR alignment could bring to the residents of New South Wales and the broader economy;
- Industry Implications: The forthcoming feasibility study by the HSRA should emphasise these RED benefits, framing the project primarily as an economic development initiative rather than merely a transportation project. Clearly communicating these benefits is essential for garnering support and ensuring the study’s success.
- Justification: As presented in Section 5.2.1, mega projects in Australia often experience significant cost and time overruns, resulting in low confidence in budget forecasts. Accurate cost and time estimations are vital barriers to overcoming project realisation;
- Industry Implications: The HSRA should adopt Reference class forecasting to provide more reliable budget and timeline estimates, presenting these as ranges rather than absolutes. Maintaining a fixed scope after project commencement is crucial to avoid unnecessary changes that could inflate costs and extend timelines. Effective supply chain management is also crucial for mitigating cost fluctuations in raw materials.
- Justification: As presented in Section 5.2.3, political factors are crucial in project approval, especially for public sector projects. The findings indicate that securing political buy-in is essential for advancing the HSR project;
- Industry Implications: The project must align with the political timelines of government cycles, typically 4, 8, or 12 years. It is advisable to overestimate required timelines to create a buffer for project execution, increasing the likelihood of success. Engaging with the public to foster support can also enhance governmental commitment, as investing in HSR is driven by national choice.
- Justification: As presented in Section 5.3, the government lacks the necessary expertise to deliver the HSR project, making private-sector collaboration crucial for its successful implementation. Engaging the private sector can enhance competition and excitement around the project;
- Industry Implications: The HSRA report should consider an Early Tender Involvement (ETI) process, which would allow private sector input in the design requirements for the HSR alignment tender. This collaboration can lead to more competitive bids and better project outcomes. Additionally, a tender reimbursement model could incentivize firms to invest time in detailed tender submissions, fostering innovation and efficiency. Furthermore, a detailed tender will likely provide a more accurate estimate of the actual cost and time.
- Justification: As presented in Section 5.3, Australia currently lacks the necessary expertise to design and implement an HSR alignment, with the Sydney to Newcastle route being particularly complex. Upskilling the workforce is essential for successfully delivering this project and future HSR initiatives;
- Industry Implications: The business case must outline a sustainable approach to workforce development, ensuring Australia can competently deliver HSR projects in the long term. This research provides a potential framework for effectively upskilling engineers, as illustrated in Figure 14.
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Criteria | Options | Multiplier |
---|---|---|
Years of Experience (Y) | 21+ | 0.558 |
11–20 | 0.263 | |
6–10 | 0.122 | |
0–5 | 0.057 | |
Field of Work (F) | Project Management | 0.633 |
Infrastructure Advisory | 0.260 | |
Other | 0.106 | |
Major Projects Sector (P) | Rail | 0.418 |
Water | 0.212 | |
Energy | 0.110 | |
Commercial Buildings | 0.067 | |
Industrial | 0.110 | |
Other | 0.067 | |
Empty | 0.018 |
Item | Rating/Weighting |
---|---|
Respondent A Rating (Q) | 4 (out of 5) |
Years of Experience of Respondent A (Y) = 21+ years | 0.558 |
Field of Work of Respondent A (F) = Project Management | 0.633 |
Major Projects Sector of Respondent A (P) = Rail | 0.418 |
0.591 |
Survey Question | Average Rating |
---|---|
How likely is it that the construction of the HSR project will be delayed? | 0.223 |
HSR projects require a greater-than-average risk contingency. | 0.215 |
The high HSR development and construction cost is a barrier to its implementation in Australia. | 0.213 |
How likely will the HSR project be delivered over budget (cost overrun)? | 0.222 |
The implementation of HSR will benefit Australia by increasing land coverage. | 0.174 |
Interviewee | Title |
---|---|
P1 | C-Suite Executive, Rail Authority |
P2 | Executive, Rail Authority |
P3 | Infrastructure Financing Specialist |
P4 | Project Management Specialist, PhD in Project Management |
P5 | Politician, Transport Portfolio |
P6 | Former C-Suite Executive, Rail Authority |
P7 | Infrastructure Advisor |
P8 | Infrastructure Advisor |
P9 | Politician, Transport Portfolio |
Risk Category | Risk Description | Likelihood | Impact | Risk Level | Mitigation Strategy |
---|---|---|---|---|---|
Cost and Time Overruns | Budget blowouts due to inaccurate forecasting, delays in land acquisition, procurement, and approvals. | High | High | Critical | Use Reference Class Forecasting (RCF) to compare similar projects; employ range-based budgeting instead of fixed estimates; ensure early land acquisition before central contracts. |
Construction Risks | Unforeseen site conditions, tunnelling challenges, heritage site issues, and supply chain disruptions. | Medium-High | High | Major | Conduct detailed geotechnical investigations before work begins; implement Early Contractor Involvement (ECI) to detect risks early; establish supplier agreements for critical materials. |
Political Risks | Change in government priorities leading to funding withdrawal or policy shifts. | High | High | Critical | Secure bipartisan support and frame HSR as a Regional Economic Development (RED) initiative instead of a transport project; ensure public engagement to create political pressure for continuity. |
Market Readiness | Lack of private sector interest due to high capital costs and long project timelines. | Medium | High | Major | Break down projects into smaller work packages to reduce financial barriers; offer incentives like risk-sharing models; explore international expertise via global tenders. |
Risk Allocation | Contractors refuse to take on excessive risk, leading to disputes and claims. | Medium-High | Medium | Major | Use alliancing contracts or Public–Private Partnerships (PPP) with risk-sharing mechanisms; ensure early risk workshops with contractors. |
Feasibility Perception | Public and political scepticism is due to the perceived low benefit–cost ratio (BCR). | High | Medium | Major | Reframe HSR as an economic development initiative rather than a transport project; highlight regional housing benefits and reduced congestion costs in feasibility studies. |
Workforce Capacity | Limited domestic expertise in HSR design and construction. | Medium | Medium | Moderate | Develop HSR-specific training programmes in collaboration with universities and TAFEs; implement a staged knowledge transfer from international experts; integrate HSR training into existing rail projects. |
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Saravana, A.; Keane, T.; Thorpe, T.; Chaaya, M.; Tahmasebinia, F.; Sepasgozar, S.M.E. Identifying Early-Stage Risks to High-Speed Rail: A Case Study of the Sydney–Newcastle Corridor, Australia. Appl. Sci. 2025, 15, 6077. https://doi.org/10.3390/app15116077
Saravana A, Keane T, Thorpe T, Chaaya M, Tahmasebinia F, Sepasgozar SME. Identifying Early-Stage Risks to High-Speed Rail: A Case Study of the Sydney–Newcastle Corridor, Australia. Applied Sciences. 2025; 15(11):6077. https://doi.org/10.3390/app15116077
Chicago/Turabian StyleSaravana, Anjuhan, Tom Keane, Thomas Thorpe, Michel Chaaya, Faham Tahmasebinia, and Samad M. E. Sepasgozar. 2025. "Identifying Early-Stage Risks to High-Speed Rail: A Case Study of the Sydney–Newcastle Corridor, Australia" Applied Sciences 15, no. 11: 6077. https://doi.org/10.3390/app15116077
APA StyleSaravana, A., Keane, T., Thorpe, T., Chaaya, M., Tahmasebinia, F., & Sepasgozar, S. M. E. (2025). Identifying Early-Stage Risks to High-Speed Rail: A Case Study of the Sydney–Newcastle Corridor, Australia. Applied Sciences, 15(11), 6077. https://doi.org/10.3390/app15116077