Two consortia, led by major contractors Laing O'Rourke and CPB Contractors, have been shortlisted to build the Morley-Ellenbrook Line, but the decision has sparked competing claims about the opportunity for local firms to participate.
The contract encompasses the design, construction and commissioning of an electric railway from Bayswater through Morley to Ellenbrook, along with five new stations.
The government plans to award the contract later this year and the main construction works are expected to start in 2021, although this is dependent on the project securing final approvals.
The Ellenbrook Alliance comprises CPB Contractors and Downer EDI – the same combination that was awarded a $1 billion contract last year to build the Yanchep and Thornlie rail lines.
The second shortlisted bidder is the MELconnx Consortium, comprising Laing O'Rourke.
Premier Mark McGowan said the project would create new opportunities for the local construction industry.
“Leading up to procurement, we engaged with hundreds of local businesses and sub-contractors so they were prepared to bid for the huge range of work available through all stages of the project,” he said.
“Many people have eagerly awaited this crucial Metronet project and procurement makes it real.
“Soon we will see the real benefits - jobs, training opportunities and faster commute times.”
Lobby group Australian Owned Contractors, which represents 12 mid-tier contractors including Georgiou Group, MACA and Decmil, said it was disappointed in the Public Transport Authority of WA's procurement process.
AOC chief executive Brent Crockford said the Morley-Ellenbrook Line was shaping to become an Australian project delivered by foreign-owned contractors.
Laing O’Rourke is a UK-based company and CPB is ultimately controlled by Spain’s ACS Group, although Downer is an Australian company listed on the ASX.
Mr Crockford said the Morley Ellenbrook procurement, much like other Metronet projects, did not encourage smaller Australian-owned contractors to participate in the head contract.
“As a result, Australian contractors will have to subcontract and take orders from foreign companies on an iconic Australian project,” he said.
“The PTA’s procurement method was in stark contrast to that used by Main Roads Western Australia on the Bunbury Outer Ring Road project which specifically included an industry sustainability criteria which gave Australian owned mid-tier contractors the opportunity to be involved in the head contract."
WA Liberal transport spokesperson Libby Mettam echoed these concerns, saying more should have been done to help local contractors.
In the Bunbury case, the competing consortia are led by major international contractors but each has included local partners.
Spanish company ACCIONA has partnered with NRW Holdings and MACA, while CPB Contractors has partnered with Carey Mining (through Carey MC) and Osborne Park-based Densford Civil.
Ms Mettam also claimed the Morley Ellenbrook Line was at least a year behind the promised construction start time and the budget had blown out by at least 15 per cent to at least $1 billion.
Transport Minister Rita Saffioti said she was surprised by the criticism.
She said the government did not exclude any companies from bidding, adding that several Australian companies were “participants” in the short-listed consortia.
Ms Saffioti said the government had broken the overall Morley Ellenbrook project into four components to make it easier for smaller contractors to bid.
The four components are the rail line, the $253 million Bayswater station upgrade, the $290 million Tonkin Gap, and forward works contracts.
ACCIONA subsidiary Coleman Rail was named earlier this month as preferred proponent for the Bayswater station upgrade, beating a rival bid from a consortium comprising Georgiou Group and Lendlease.
Ms Saffioti also noted early works were already under way as part of the Bayswater Station upgrade, adding that the government was seeking to bring forward the environmental approvals for the main rail line to expedite the project.
In addition, the government was finalising a new initiative to help local contractors win more work on infrastructure projects.
The 21-kilometre Morley Ellenbrook rail line will run up the middle of Tonkin Highway, through land north of Marshall Road, including part of Whiteman Park, along Drumpellier Drive and finish in the Ellenbrook town centre.
New stations will be built at Morley, Noranda, Malaga, Whiteman Park and Ellenbrook, with the option to build a future station at Bennett Springs East as population grows.
Bayswater Station is being upgraded as it will form a junction for the Morley Ellenbrook Line, the Forrestfield Airport Link and the existing Midland rail line.
Ms Saffioti said today’s decision was another major step forward for the Morley Ellenbrook Line project.
“Residents in our growing north-east suburbs like Ellenbrook, Dayton, Ballajura and Brabham will soon be able to enjoy a faster commute to the Perth CBD thanks to this major infrastructure project,” she said.
“Combined with NorthLink WA, the Reid Highway duplication and New Lord Street, residents in this growth corridor are getting the infrastructure they deserve.
“Metronet projects like the Morley Ellenbrook Line are not just about building these important public transport links - they will also create thousands of jobs for WA residents and play a big part in WA’s COVID-19 economic recovery.”