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5ProjectPlanning1.pptxSCM2210 TRANSPORTATION Principles INFRASTRUCTURE PROJECT PLANNING
Dr. Adolf K.Y. Ng
Professor, Dept. of Supply Chain Management
Asper School of Business, University of Manitoba
Source: HMC
Contents
The Study Approach
Canada, Manitoba, Winnipeg and CentrePort
The CCW Project: The Origins and Idea
The CCW Project: Planning and Construction
Conclusion
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The Study Approach
A very recently completed project (officially opened by Stephen Harper, the Prime Minister of Canada, in November 2013)
A historical analysis on the idea, and the project’s planning and development (initiated in 2008, and undertaken in 2009-2013)
Mainly looking from the institutional perspectives (how institutional and political factors have shaped the planning and development of the project)
The CCW project prompted (forced) a number of ‘paradigm shifts’ in infrastructure planning by the Manitoba Provincial Government (MPG), which were unpredecented in Manitoba
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Contents
The Study Approach
Canada, Manitoba, Winnipeg and CentrePort
The CCW Project: The Origins and Idea
The CCW Project: Planning and Construction
Conclusion
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About Canada, Manitoba, Winnipeg and CentrePort
Winnipeg is the centre of Canada
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Among the Manufacturing Sector:
Food processing; Agribusiness Manufacturing; Heavy Vehicles; Building Products
Source: MPG
About Canada, Manitoba, Winnipeg and CentrePort
12/8/18
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About Canada, Manitoba, Winnipeg and CentrePort
Source: centreport.ca
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About Canada, Manitoba, Winnipeg and CentrePort
The Trans-Canada Highway (TCH)
(Source: Transport Canada)
About Canada, Manitoba, Winnipeg and CentrePort
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Source: maps.google.com
Contents
The Study Approach
Canada, Manitoba, Winnipeg and CentrePort
The CCW Project: The Origins and Idea
The CCW Project: Planning and Construction
Conclusion
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The CCW Project: The Origins and Idea
The traditional industrial district of Winnipeg was concentrated in the Northwestern part
Since the 1970s, there had been discussions on relieving congestion and improve mobility for Inkster Blvd. and Provincial Highway 221 (PR221) which were, by then, the only access to the Perimeter Highway (PTH101)
This was not surprising, as the idea of establishing CentrePort Canada (‘CentrePort’) was only initiated by the MPG in 2008, after the idea of the CCW project began to take root.
The question: why suddenly a change of heart by MPG?
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The CCW Project: The Origins and Idea
The original ideas became obsolete since the mid-2000s…
The Asia-Pacific Gateway and Corridor Initiative (APGCI) (initiated by the Martin Government through the Pacific Gateway Act, Bill C-68, October 2005; further promoted by the Harper Government in 2007)
It was the very first time that the concept has been transformed from a ‘regional’ (mainly British Columbia and Alberta) to a ‘national initiative’
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The CCW Project: The Origins and Idea
Potential Impacts on Manitoba:
It offers a valuable opportunity to Manitoba to ‘get connected’ with the world through international trade (to transform from an inland, regional region to an international inland hub in Canada, or even North America)
How can Manitoba, and not (just) other provinces, gain from this initiative? a political issue involving inter-provincial competition
This was not helped by the ‘single-location’ strategy undertaken by MPG and other Canadian provincial governments
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The CCW Project: The Origins and Idea
What did the MPG decide/need to do?
The establishment of ‘CentrePort’ (an inland port)
The rapid installation of infrastructures to connect CentrePort with the major transport networks in Canada (especially the TCH and Provincial Trunk Highway 75 (PTH75) connecting to the US), so as to (1) reduce transport and logistics costs; and thus (2) enhance the competitiveness of CentrePort
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The CCW Project: The Origins and Idea
Inkster Blvd. and PR221 improvement would unlikely achieve such objectives…
CentrePort
Winnipeg
Airport
Inkster Blvd.
PR221
CCW
Rail Tracks
Grade Separation
with Rail
The CCW Project: The Origins and Idea
There were other (secondary) considerations:
The proximity of the Winnipeg airport (as an aviation hub)
Social and environmental issues (like reducing air pollution and traffic flows along the Saskatchewan Avenue)
The need to construct (more) road-rail grade separations in the original plan (higher costs for the original plan)
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Source: centreport.ca
The CCW Project: The Origins and Idea
The CCW Project: The Origins and Idea
A revised proposal would look more appealing to the Federal Government for funding
The first ‘paradigm shift’: proposed actions (as reflected in the funding proposal), and later the functional design, were built upon (sometimes more hypothetical) economic (e.g., forecasts in regional economic development, figures international trade, etc.) rather than (empirical) engineering indicators (e.g., traffic flows, mobility, etc.))
Although the Federal Government was not completely happy with the proposal (mainly due to the lack of a strategy to inscribe rail into the project), but they decided to support the project due to the MPG’s ‘trade-based’ strategy, and willingness to commit resources on the APGCI.
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The CCW Project: The Origins and Idea
The Federal Government paid nearly 50% of the C$212.4 million
> Build Canada Fund (C$68.35 million, administered by Infrastructure Canada)
> Asia-Pacific Gateway Fund (C$33.25 million, administered by Transport Canada)
The second ‘paradigm shift’: after the CCW project, MPG starts to develop ‘shovel-ready’ proposals dedicated for funding application from the Federal Government.
It implied that the direction of infrastructure planning in Manitoba gradually moved upwards towards ‘national objectives’ (note: the CCW itself was actually a ‘provincial’ project)
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Contents
The Study Approach
Canada, Manitoba, Winnipeg and CentrePort
The CCW Project: The Origins and Idea
The CCW Project: Planning and Construction
Conclusion
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The CCW Project: Planning and Construction
However, the Federal Government’s funding on the CCW project would only last for 5 years (in other words, the MPG would bear all the financial consequences for any delays)
Traditionally, all infrastructure projects in Manitoba were planned and constructed via the Design-Bid-Build (DBB) approach (which usually lasted for 6-7 years)
The potential financial consequences not least the financial cost of the latter stages, like construction (‘build’), was often much higher than the ‘design’ stage), was usually higher
The political pressure to get it done as quickly as possible due to regional competition (must build ‘faster than Regina (SK), Calgary (AB), etc.’)
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The CCW Project: Planning and Construction
The third ‘paradigm shift’: the design-build (DB) approach.
The contractors were responsible to design and build the infrastructure, based on their past experiences, techniques and know-how.
For instance, quoting Hugh Munro Construction Ltd. (one of the contractors of the CCW project): “the project involved the design and build of grade separations for the CCW transportation corridor.” (source: hmcl.ca)
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Source: HMC
The CCW Project: Planning and Construction
Given the lack of precedence, the use of DB approach caused substantial uncertainties on how to proceed, especially in view of such a tight deadline (5 years).
The interactions between institutions (the Federal Govt. and the MPG) had created ‘institutional uncertainties’.
Institutions were established to reduce uncertainties and chaos through the creation of ‘normalities’ and ‘procedures’ (rather than innovation). In facing uncertainties that an institution (MPG) had to solve, how did they deal with it?
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The CCW Project: Planning and Construction
So, what did the MPG (through the Manitoba Infrastructure and Transportation (MIT) do?
The MIT communicated with Alberta, of which during that time they were also involved in a DB project, namely the Stony Plain Road/Anthony Henday Drive Interchange Project
For instance, the MIT actually developed the DB contract for their project contractors based on a public private partnership (PPP) contract from Alberta.
The primary approach of solving institutional uncertainties by institutions was to find alternative ‘certainties’ so as to blanket such uncertainties.
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The CCW Project: Planning and Construction
The consequences (the positive side):
The ‘design and bidding’ stage became much quicker (only took about 12 months from call for proposals to signing contracts with contractors). Most of the time was used on construction.
The project was indeed completed within 5 years (and opened in November 2013)
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The CCW Project: Planning and Construction
The deficiencies and challenges:
Quality assurance (QA) and quality control (QC) became much more difficult to maintain.
The dilemma from MPG/MIT: how should they impose control (like closed down the construction at some points), but faced the risks of delays, and possible claims from contractors later?
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The CCW Project: Planning and Construction
The deficiencies and challenges:
Clear priorities were placed on the ‘tangible’ items, i.e., the physical construction, while the ‘soft’ side of the project had been seriously lagging behind.
In some ways, the MPG retracted from its traditional role as the focal point of the infrastructure project, sometimes leaving contractors a bit ‘lost’ on the planning and construction process.
For instance, at the time when the CCW was opened (and vehicles started to flow), some documents/permits (like the RTAC and LCV permitted route status) had not been obtained. what would be the consequences if any accidents happen?
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The CCW Project: Planning and Construction
A matter of political risk calculation?
“Compared to allowing a million-dollar project to be completed but could not be used, ignoring those ‘silly’ safety standards and paper works were trivial.”
“Would you allow such ‘silly’ things to trump against the long-term competitiveness of CentrePort and Manitoba?”
One thing for sure: the planning approach by the MPG became much more ‘single-target-oriented’, duly forced by institutional and political pressure.
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Contents
The Study Approach
Canada, Manitoba, Winnipeg and CentrePort
The CCW Project: The Origins and Idea
The CCW Project: Planning and Construction
Conclusion
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Conclusion
To a large extent, the CCW project was politically- and institutionally-driven
Inter-institutional dynamics had created ‘institutional uncertainties’, which caused a number of ‘paradigm shifts’ in infrastructure planning in Manitoba
The primary approach was to find alternative ‘certainties’ so as to blanket such uncertainties.
There were signs that the MPG retracted from the traditional role as the focal point of the project, and became more ‘single-target-oriented’ in the planning approach.
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Conclusion
It has certainly created a new alternative for infrastructure planning in Manitoba (and likely to increase in the future)
Is it the appropriate approach? How to address the challenges and deficiencies?
To what extent is the ‘upward direction’ (towards national initiative) beneficial for Manitoba?
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Thank You Q&A
