4.1
Airservices Australia seeks approval from the Committee to proceed with the Sydney (Kingsford Smith) Airport Tower Refurbishment Project.
upgrade the supporting services to extend the tower design life and meet the current building codes;
modernise and enhance the building amenities to bring them up to modern standards; and
provide a suitable tower facility at Sydney (Kingsford Smith) Airport to support the upgraded Integrated Tower Automation Suite (INTAS) technology.
4.3
The project forms part of the national program to progressively upgrade the current Eurocat tower technology system to INTAS across Australia.
4.4
The project cost estimate for the proposed works is estimated at $24.8 million (exclusive of GST).
4.5
The project was referred to the Committee on 1 December 2020.
Conduct of the inquiry
4.6
Following referral the inquiry was publicised on the Committee’s website and via media release.
4.7
The Committee received one submission and one confidential submission. A list of submissions can be found at Appendix A.
4.8
On 11 March 2021, the Committee conducted a project briefing, public and in-camera hearing via teleconference. A transcript of the public hearing is available on the Committee’s website.
Need for the works
4.9
The existing control tower at Sydney (Kingsford Smith) Airport was constructed between 1993 and 1995 with a design life of 40 years. Sydney (Kingsford Smith) Airport is Australia’s busiest airport and fundamental to the efficient functioning of the country’s entire aviation network.
4.10
Airservices explained that continued safe air traffic operations at Sydney (Kingsford Smith) Airport are of the highest importance, and take precedence over all aspects of the tower refurbishment project.
4.11
Airservices told the Committee that:
Airservices Australia plays a critical role at Sydney airport, providing air traffic control, aviation rescue and firefighting, and infrastructure at the airport. The tower is a critical piece of infrastructure that provides essential services 24 hours a day, seven days a week throughout the year.
4.12
The tower at Sydney Airport accommodates the following:
Air traffic control positions (consoles) in the cabin
Staff accommodation facilities (such as offices, training and conference rooms)
Supporting amenities for air traffic controllers
Plant and equipment rooms.
4.13
There are 42 rostered-on controllers to manage air traffic 24/7. The tower was designed and constructed to ensure optimal work health and safety (with break out rooms and other amenities) standards and operational safety (with sufficient security, space, lighting, airflow, temperature and noise control). Airservices noted that these amenities also require a general refurbishment to address emerging human factor implications for air traffic controllers, such as a resting room for after a curfew shift before commuting back home.
4.14
Engineering assessments were conducted by GHD Group Pty Ltd (GHD) on the tower’s infrastructure in August 2018 and on the tower fabric in 2019 (to assess coatings and corrosion). GHD’s assessments confirmed that the building’s electrical and mechanical service systems are approaching end of life, and that various components of the facility are no longer compliant with building codes and standards, work health and safety (WHS) standards, or environmentally sustainable design requirements. Furthermore, the engineering assessment also highlighted that the existing building infrastructure has an inadequate capacity to successfully support and implement INTAS technology.
4.15
In 2012, Airservices launched a national program to progressively upgrade from the current Eurocat tower technology system to new INTAS software. INTAS consists of automation software that illustrates flight plan data, surveillance imagery, status of airfield navigation aids and lighting, and communications interface to the air traffic controllers on a number of touch screens.
4.16
Airservices note that INTAS has already been installed in eight of their towers, although the current standard of electrical and mechanical services in the Sydney (Kingsford Smith) tower will be insufficient to support the required increase in capacity and must be upgraded in order to accommodate the INTAS technology.
4.17
Whilst the tower has been sustained through regular, ongoing maintenance, the control tower is in need of various mechanical, structural and electrical upgrades, WHS issues and other refurbishment work to ensure a service life for a further period of 15 years, as well as supporting the transition to INTAS technology.
4.18
Airservices explained that it is important that the tower must remain fully operational in order to provide ongoing day-to-day air traffic control services while the tower systems are transitioned to INTAS.
Options considered
4.19
In rectifying the deficiencies in capacity, functionality and compliance of the tower, Airservices stated it considered the following options:
Option 1 – maintenance of the existing facility (that is, do nothing) – not recommended. This option was not considered viable as Airservices nationwide upgrade to INTAS is a prerequisite for the introduction of the Civil Military Air Traffic Management System (CMATS).
Option 2 – Tower life extension to enable in-situ transition to INTAS – preferred option. This option will extend the life of the tower and enable an in-situ transition to INTAS. Moreover, this option offers a shorter transition period, lower cost, and fewer reputational and financial risks than construction of a new tower. This option delivers the following benefits:
Provides a facility life extension for a further 15 years
Ensures reliability, availability and maintainability of mechanical and electrical infrastructure
Provides infrastructure capacity to facilitate the implementation of future systems (INTAS)
Rectifies non-conformances with building codes and standards
Modernises the standard of accommodation and amenities for staff to meet current legislative and efficiency standards
Minimises heritage implications
Lower risk of service disruption arising from the building services transition (the new Building Services Centre will allow parallel operations of two systems during transition)
Lower risk of project timeframes not being met (lower complexity and fewer dependencies)
Option 3 – Construction of a new tower – not recommended. Airservices discounted this option due to the complexities associated with the impact on air traffic control operations during construction, the heritage implication, the requirement for regulatory approval of a new tower location, the comparatively higher cost, and insufficient construction time to meet the constraints of the CMATS transition.
Option 4 – Construction of a prefabricated cabin – not recommended. GHA was engaged to assess the feasibility of adding a prefabricated cabin on top of the existing tower. GHD advised that adding another level to the tower was not feasible due to heritage impacts, technical complexity, structural changes, cost, and operational impact, including the need to relocate tower staff and services for a period of at least six months.
4.20
Airservices told the Committee that it had incorporated a range of lessons learned during similar in-situ refurbishments of towers across Australia and have incorporated these learnings into the plans for the Sydney Tower project.
4.21
Airservices also noted that:
There is very little difference between the level of capability that is being deployed or proposed to be deployed in Sydney to that, for example, that has been recently deployed in Brisbane. Largely it is introducing new technology in Sydney and a new system. However, it is consistent with similar deployments at major aerodromes around the country.
Scope of the works
4.22
The proposed scope of the Sydney (Kingsford Smith) Airport Refurbishment Project includes the following:
Construction of a new Building Services Centre to accommodate the new chillers, generators, electrical distribution boards and Uninterruptable Power Supply
Upgrade and/or replacement of building services (including electrical, mechanical, hydraulics, fire protection, physical security and communications)
General infrastructure refurbishment activities:
Structural corrosion repairs
Inspection/replacement of ductwork and pipe work
Security upgrades including fencing and access control
Optimised layout of the administration area at the base of the building (due to the removal of plant)
Painting of internal and external surfaces
Fid-out and refurbishment of tower internal, including flooring, kitchens, amenities and doors
Cabin refurbishment including flooring, ceiling, carpet, consoles, task lights and blinds
External landscaping/car park
Rectification of WHS issues (such as fire protection, lift, cladding)
Decommissioning, make good and disposal of legacy equipment, systems and services.
Consultation
4.23
Airservices stated that, during the design phase, the following internal stakeholders were consulted:
Operational teams and air traffic controllers
4.24
Airservices is undertaking further consultation with both internal and external stakeholders including the airport, unions, relevant Government departments, the Airport Planning Coordination Forum, and the Sydney Airport Community Forum. This engagement commenced in July 2020, and Airservices confirmed the following:
The project team will engage with unions, industry and airlines once the project enters implementation phase, to inform all stakeholders of the timeliness, scope and any impact to the aviation industry
Airservices will also engage a contractor to provide support in managing the heritage implications of the tower refurbishment, including consultation with the Department of Agriculture, Water and the Environment
As the facility is located within an area of land leased by Airservices from [Sydney Airport Corporation Limited] SACL, extensive and ongoing consultation is being undertaken with SACL about the proposed project.
4.25
Staff forums were held in Sydney to present the design for the refurbishment activities, and Airservices stated that the feedback received from staff and key internal stakeholders has been incorporated into the final design.
4.26
When questioned by the Committee on the level of staff engagement to date Airservices stated:
…we have staff who are engaged at a subject matter expert level in terms of the adaptation of the technology for our procedures. Certainly in terms of the holistic staffing engagement, they understand that the project requires training to be competent on the new system, and they understand the transition plan in terms of the sequence in which the in situ transition will occur.
Local community impact
4.27
The project is not expected to generate any significant impact on the local community, as the construction and siting are located within the Airservices compound at Sydney (Kingsford Smith) Airport.
4.28
Airservices will arrange with Sydney (Kingsford Smith) Airport to use a temporary leased area to establish a contractor’s lay-down and administrative area, and act as the Airservices staff carpark for the duration of the construction.
4.29
Construction will take place during standard working hours and as the tower will remain fully operational during the project, power and communications will not be affected.
4.30
As per the Construction Environmental Management Plan (CEMP), construction-related noise will be lower than the normal airport environmental noise level, and will not be noticeable to the local residents in Botany (approximately one kilometre away).
Heritage considerations
4.31
The tower was included in the Commonwealth Heritage List in 2016, and the classification requires that Airservices maintain the heritage value of the tower, including the Environmental Protection and Biodiversity Conservation (EPBC) Act 1999 and the Airports Act 1996.
4.32
In accordance with the EPBC Act and regulations, a Heritage Management Plan for the tower was put out for public comment and provided to the Sydney Airport Corporation Limited (SACL) for review. This plan was subsequently reviewed by the Department of Agriculture, Water and the Environment and supported by the Australian Heritage Council.
4.33
Airservices has prescribed a heritage specialist to complete a Heritage Impact Statement as part of the Review of Environmental Factors submission to SACL. Should the Heritage Impact Statement reveal that the construction will significantly impact or adversely affect known heritage values, then referral to the government in accordance with the EPBC Act may be required.
4.34
Some environmental impacts related with the construction include potential adverse impacts from soil and water contamination, particularly from pre-existing contaminants such as Per- and Poly-fluoroalkyl Substances (PFAS). However, these environmental issues will be managed through the implementation of a CEMP.
4.35
In accordance with the Heritage Management Plan, Airservices state the conservation objectives for the tower as the following:
Maintaining the external presentation of the control tower, including the following structural elements:
Cable-styled concrete shaft
Steel-framed external lift which is attached to the shaft by fly braces
Amenities and equipment level, which cantilevers from the top of the shaft and is carried on a steel platform
Circular control cabin, with canted windows
Maintaining the internal components that distinguish the tower, specifically the column that supports the cabin roof and peripheral console concept
Views of the tower from the public realm, including General Homes Drive and within the airport complex.
4.36
The refurbishment activities, including the construction of the Building Services Centre, will be in accordance with the Heritage Management Plan to ensure the heritage values of the tower are not negatively impacted.
4.37
At the public hearing Airservices updated the Committee on where in the process it was up to with regards to the EPBC Act and the Heritage approval process:
In accordance with the EPBC Act and regulations, a heritage management plan for the tower was put out for public comment and provided to Sydney airport for review. This plan has been reviewed by the Department of Agriculture, Water and the Environment, the heritage section, and endorsed by the Australian Heritage Council. We have engaged a heritage specialist to complete a heritage impact statement as part of the review of environmental factors submission to SACL. That will go forward with the development plan. As a consequence of those activities that we have undertaken to date, we are confident that we are appropriately managing heritage considerations.
Cost of the works
4.38
The project cost estimate for the proposed works has an estimated cost of $24.8 million (exclusive of GST). This estimate was based on an analysis of the detailed design by two quantity surveyors, in addition to a comparison with the actual costs obtained from comparable projects.
4.39
The cost estimate is categorised as a P80 level of confidence, incorporating all construction and consultant costs, labour, equipment, travel and a contingency provision.
4.40
Airservices state that the project is funded under the Airservices Investment Plan.
Revenue
4.41
Airservices charges airlines and aircraft operators for services and this revenue, in turn, funds its capital expenditure requirements.
4.42
Charges levied are subject to extensive consultation with these customers and are regulated by the Australian Competition and Consumer Commission (ACCC) under the Prices Surveillance sections of the Competition and Consumer Act 2010.
Committee comment
4.43
The Committee was pleased to hear that Airservices has incorporated lessons learned from similar in-situ projects that have been carried out across Australia.
4.44
The Committee did not identify any issues of concern with the proposal and is satisfied that the project has merit in terms of need, scope and cost.
4.45
Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit for purpose, having regard to the established need.
4.46
The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Airservices Australia, Sydney (Kingsford Smith) Airport Tower Refurbishment Project.
4.47
Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The committee also requires that a post-implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.