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  • https://doi.org/10.1080/07293682.2024.2445018Copy DOI Icon

The opportunities and challenges in keeping over-rail developments on track

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Abstract

ABSTRACT The Australian built environment adjoining rail infrastructure and rail corridors is undergoing significant transformation following government tender for several unprecedented over-station developments such as the developments along the metro in Sydney. This has led State governments to consider innovative strategies to activate railway tracks such as the mooted deck over the rail yards of Sydney's Central Station to expand the city's evolving Tech Central precinct and, more recently, exploration of a three-hectare deck to connect Flinders St with the Yarra River in Melbourne to deliver a public park, an events space, and improved pedestrian access to the Melbourne CBD. Over-rail projects provide an exciting opportunity to deliver well-located developments which re-activate underutilised public spaces and yield outstanding placemaking outcomes for the community. This article canvases some of the key considerations for these projects including the heritage aspects, public realm and ground level activation opportunities, planning risks, operational requirements, contractor and interface risks and the appropriate investment structures. The observations suggest that there are a number of gateway issues that governments and developers should address proactively to secure project objectives and public outcomes, and ultimately there is sufficient merit to re-activating these well-located sites provided the parties adopt appropriate mitigation strategies. Practitioner pointers Over-rail developments require careful consideration of the heritage and public realm aspects of the project in order to achieve appropriate and sustainable outcomes for all key stakeholders. It is important to establish robust and flexible governance arrangements, decision making protocols and a stakeholder engagement strategy prior to bidding for any over-rail development given the level of complexity involved and the long-term operational requirements of the project. An interface agreement is also required to ensure cooperation, integration, compliance and limitations of liability between all key interfacing parties. Capital partners should be aware of the current contracting landscape for development projects which has seen developers walking away from risky projects, the reintroduction of rise and fall mechanisms, and the inclusion of incentive mechanisms tied to agreed objectives. Given the trend for developers and capital partners to form consortiums for these developments, the parties must establish appropriate investment structures which cater for entering and exiting partners, and provide sufficient comfort to existing partners that any conflicts regarding capital and operational investment requirements can be adequately resolved.

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