Financial Performance
For the year ended 30 June 2024, STC’s comprehensive loss was $16.74 million (30 June 2023: $7.6 million loss). Total Equity of STC as at 30 June 2024 was $539.99 million (as at 30 June 2023, $370.51 million). The Net Cash Outflows from operating activities for the year ended 30 June 2024 were $18.1 million (30 June 2023: $19.6 million).
| Year ended | 30 June 2024 | 30 June 2023 |
|---|---|---|
($’000) | ($’000) | |
| Operating results | ||
| Other income | 2,412 | 141 |
| Total operating income | 2,412 | 141 |
| Employee benefit expenses | (5,622) | (1,505) |
| Depreciation | (63) | - |
| Interest expense | (17) | - |
| Other operating expenses | (13,451) | (6,276) |
| Total operating expenses | (19,153) | (7,781) |
| ||
| Comprehensive result (loss) | (16,741) | (7,640) |
| Financial status | ||
| Total assets | 4,644,618 | 2,353,455 |
| Total liabilities | (4,104,622) | (1,982,941) |
| Total equity | 539,996 | 370,514 |
Delivery of the North East Link
Preparations for tunnelling commencement
Over the course of 2023-24, preparations for the commencement of tunnelling on the Central Package of the North East Link were largely completed.
In line with contractual requirements, in July 2023 senior representatives of STC, the State and Project Co formally certified the two tunnel boring machines (TBMs) that will be used to construct the twin 6.5 kilometre tunnels in the Central Package. The process involved travelling to the Herrenknecht manufacturing facility in Guangzhou, China.
The certification process is a contractual precondition for transporting the TBMs by ship to Australia, required to ensure that they will meet the North East Link’s technical requirements before they leave the factory. The process was successful and the TBMs began arriving in August 2023. When assembled, each TBM is 90 metres long, 15.6 metres in diameter and weighs around 4,000 tonnes. The machines were shipped in pieces and reassembled at the TBM launch site in Watsonia.
Other tunnelling infrastructure took shape, including the TBM launch box, manufacture of concrete tunnel segments, construction of a large acoustic shed at Macleod to manage the dirt and rock from tunnelling, and excavation of the ventilation tunnel using road headers.
Bulleen Road and Manningham Road were both successfully realigned, with thousands of vehicles diverted onto new lanes to allow for continued major excavation of the tunnel ramps. Major excavation of the TBM retrieval box occurred at the Manningham site, while further south at the Trinity Grammar compound concrete supporting walls were installed while major cut and cover excavation progressed through the site toward the Eastern Freeway.
The TBMs are scheduled to be launched the first quarter of 2024-25.
Interface management and operational readiness
In December 2023, MRPV awarded the contracts to deliver upgrades to the M80 Ring Road and the Eastern Freeway at the northern and southern ends of the Tunnels respectively.
Although these elements of the North East Link are not being financed by STC, they have significant interfaces with the Tunnels in both the delivery and operations phase of the project. These contract awards provided greater certainty around scope and timing for these projects, enabling early preparations for the operational phase to commence.
North East Link Operational Systems
In October 2023, the delivery strategy for the systems required to operate tolling on the North East Link was formally approved by Government. This enabled the procurement process for the Toll Collection Capability Project (TCC Project) to commence.
The TCC Project is being procured and delivered through four separate packages:
- Tolling Enabling Infrastructure;
- Roadside systems;
- Back office systems; and
- Cyber Security and Information and Communications Technology (ICT) Network.
Enabling infrastructure
As part of the PPP, Project Co continued design development of the enabling infrastructure for the systems required to operate the North East Link. In 2023-24, this included laying foundations for gantries and signage, finalisation of design on pits and conduits, and planning for electrical and communications connections.
Roadside systems
The Roadside Systems Package is the technology solution that will be used to detect and classify vehicles using the North East Link. It includes gantries and screens, cameras, radio frequency transponders, computer and communications systems and road markings.
In December 2023, STC issued the Expression of Interest documentation for the delivery of Roadside Systems. The process received strong market engagement, with 17 parties formally expressing interest in the procurement process and 10 submitting responses. In May 2024, three respondents were shortlisted to progress to the Request for Proposal (RFP) stage of the procurement. The RFP was released in early July 2024.
Back office systems
The Back Office Systems Package includes the systems required to identify users of the North East Link and charge their accounts. It includes computers and servers, software including numberplate recognition systems, customer billing and accounting systems.
During 2023-24, preparations to procure these systems were made ahead of the commencement of procurement in the first half of 2024-25.
Corporate and risk management
Over the year, STC continued the progressive build out of the corporate systems and processes required to support the organisation’s development into an independent commercial toll road operator. Key milestones included:
- Securing a new office site, which will provide the ICT infrastructure required to operate the North East Link upon completion, and allowed STC to move out of its temporary shared premises with Cenitex.
- The implementation of an integrated risk management framework, which provides a mechanism for monitoring and mitigating risks across the entire organisation. This includes STC’s obligations in relation to the delivery of the North East Link Central Package, its direct role in the procurement and delivery of the TCC Project, and other corporate and financial risk management obligations.
- Continued build out of corporate systems and policies, which will gradually reduce STC’s reliance on DTP and other parts of Government for support in the administration of human resources (HR), ICT and other corporate functions. This is in line with STC’s statutory obligations relating to its independence from Government.
Updated