Business Report A Hypothetical Case Study (Capital Metro)

Question: Discuss about the Business Report for A Hypothetical Case Study of Capital Metro. Answer: Introduction Light rail is a form of railway system having small sized railcar (generally 2-3 coaches) and the rails are laid along the normal road or highway. The purpose of light rail is to ease the pressure on rush hour traffic like office cars, buses and others. In this hypothetical case study, a light rail project is proposed in the city of Canberra. The project is designed to create a light rail route within Canberra, which will cover all the important places as well as the commercial district (Birdsall 2016). Canberra is a standout amongst the most busiest and vital city of Australia. As indicated by the proposed framework, the light rail course will be made alongside the main and busy routes of the city. Nevertheless, the topography of the city has made the roadways to be worked along ridges and hence, less space is accessible for the light rail course. Amid the execution of a light rail project, a standout amongst the most essential points of the management must be to decrease the blocka ge and tumult of the ordinary roadways and give smooth and basic light rail system (Olesen and Lassen 2016). The management should likewise plan to give comfortable experience to the travelers and in addition delivering a more eco-friendly environment. This light rail project will be executed after the planning phase and is expected to cover most of the city and its commercial districts. This project is expected to cover an overall length of around 12km within the city of Canberra (Ney and Gray 2014). This route will connect key commercial districts of Canberra as well as some popular tourist spots so that all kinds of customers are benefitted from the light rail system. The overall expenses of the project is expected to reach $900 million. In this report, the details of the project and estimated expenses and other parameters have been analyzed and discussed along with the development of a system design. Methodology In the specific report, detailed research methods have been used to analyze a hypothetical project for understanding the system design requirements and concepts. Data has been collected from different works of researchers as well as real life case studies for the analysis of this hypothetical case study. This hypothetical case study is based on the development of a light rail project in the city of Canberra. For system design purpose, actual data has been collected that are needed to complete a business report based on the selected project. Information has been gathered from internet sources as well as verified statistical values from different surveys. Assorting all the data and information, detailed analytic study has been conducted on this hypothetical project. In this report, consumer behaviors of passengers that are expected to be benefitted from the light rail project have also been discussed. Conceptual System Design The project is designed to create a light rail route within Canberra, which will cover all the important places as well as the commercial district. Canberra is a standout amongst the most busiest and vital city of Australia (Currie and Burke 2013). Alongside the developing number of enterprises and business associations, the quantity of working individuals is developing every year. In the city, around 40,000 individuals use transport amid ordinary hours and amid top hours, the number ascents to more than 600,000 (Hensher 2016). These outcomes are responsible for the developing number of transport suburbanites in the city. This detail itself is the confirmation of the rising number of workers. Because of excessively numerous suburbanites in the rush hour, activity clog is extremely regular in the city. Figure 1: A Light Rail System (Artists Impression) (Source: Capital Metro Agency 2014) As indicated by the proposed framework, the light rail course will be made alongside the main and busy routes of the city. Nevertheless, the topography of the city has made the roadways to be worked along ridges and hence, less space is accessible for the light rail course (Downs, Cassels and Ericksen 2014). Additionally, the current city arrange likewise allows constrained space for extension of the streets and thus, the light rail undertaking will dependably be a testing one to execute. Figure 2: Proposed Route of the Light Rail Network (Source: Capital Metro Agency 2014) Thus, the idea of the framework outline must be such that the light rail can be actualized alongside the normal roadways. Once more, the real street ranges ought not be diminished or it will bring about more movement blockage. The proposed course will go through all the bustling territories of the city and in addition the most essential spots amid the rush hours (Ho, Hensher and Mulley 2015). As per the examination directed by the Canberra service, the light rail will have the capacity to transport most extreme number of travelers contrasted with the other general method for transport. Preliminary System Design The basic design of the light rail network system can be based on the following factors. Priority to Customers Any business service should always be provided based on the customer priorities. According to the project management authority, the light rail is aimed to provide services to various types of customers (passengers), e.g. Short trip passengers for business, tourism, shopping purposes Suburb passengers for work, entertainment Student passengers for school, university, etc Patron passengers for major events, race course, etc Bypass passengers for changing from rail to road, rail to ferry, etc Other passengers like patients, commuters delayed by congestion, etc Proposed Services After the light rail installation is complete, the authority will be able to provide light rail services every 2-3 minutes during peak time and 7-10 minutes in lean hours (Burke, Currie and Delbosc 2014). The light rail management should always aim to provide fast and reliable services to its passengers. Simple Traffic and Transportation System Amid the execution of a light rail project, a standout amongst the most essential points of the management must be to decrease the blockage and tumult of the ordinary roadways and give smooth and basic light rail system (Mulley, Tsai and Ma 2015). The management should likewise plan to give comfortable experience to the travelers and in addition delivering a more eco-friendly environment. Tailing this goal, electric fueled and air-conditioned light rails were executed in the light rail course (Miller 2014). Subsequent to beginning the course finished in 2014, the blockage and disorder in the adjacent street have diminished significantly alongside the air contamination around the course. Convenient Ticketing System The management can opt to open mechanized electronic ticketing system for the light rail system at various outlets as well as on-board system. This has made less demanding for the passengers to purchase tickets for their travel (Peter, Jeffrey and Garry 2013). Sooner rather than later, the management can arrange an incorporated ticketing system and permitting the utilization of Opal Cards and e-ticketing systems. Detail Design and Development This light rail project will be executed after the planning phase and is expected to cover most of the city and its commercial districts. This project is expected to cover an overall length of around 12km within the city of Canberra (Martin 2014). This route will connect key commercial districts of Canberra as well as some popular tourist spots so that all kinds of customers are benefitted from the light rail system. The overall expenses of the project is expected to reach $900 million. This light rail course is outlined in a manner that it is expected to become an incorporating variable for the transportation arrangement of the territory (Chandler 2015). Moreover, the light rail route goes about as a connector amongst roadways and the heavy rails at different parts of the city. Because of this, the traffic clog of streets in the close-by territory has diminished definitely. The course has been composed such that the suburbanites can without much of a stretch access different method for transport in the wake of leaving the rail car (Mysydney.nsw.gov.au. 2012). The light rail course will touch a few noteworthy parking spots and in addition, real transport terminals, ship ghats, large rail stations, and so on. This course additionally goes through most of the busiest parts of the city that include financial districts, universities, museums, offices and other places of public and tourist interests (Hensher, Mulley and Rose 2016). One or more substations should be installed for supplying electrical energy to the light rail framework. Notwithstanding all these, different frameworks like traveler data framework, wild life protection measures, access ways, lighting offices and others have been introduced. Content Case Analysis Challenges and Estimations During the system design phase, a large number of challenges may be faced. These are as follows. Urban Development During the course of the development of light rail route, the authority should likewise call attention to the improvement and reestablishment of close-by regions for expanding benefits from ticket revenue (Vareilles et al. 2015). The light rail was ready to achieve more regions of the city that will in the end lead to urban reestablishment. Busy and Growing City Canberra is a standout amongst the most busiest and vital city of Australia. Alongside the developing number of enterprises and business associations, the quantity of working individuals is developing every year. In the city, around 40,000 individuals use transport amid ordinary hours and amid top hours, the number ascents to more than 600,000 (Rumbaugh 2014). These outcomes are responsible for the developing number of transport suburbanites in the city. This detail itself is the confirmation of the rising number of workers. Because of excessively numerous suburbanites in the rush hour, activity clog is extremely regular in the city (Catthoor et al. 2013). As indicated by a review, to clear blockage and travel a mere 2 km, it takes about an hour amid the rush hour. Global Competition As for the expansion of the financial aspect and global value of the city, the light rail must be produced with the goal that it draws in more sightseers from different districts and nations. The most current light rail cars ought to be introduced keeping in mind the end goal to contend with different urban areas of the world (Downs, Cassels and Ericksen 2014). Pulling in more global travelers will help in producing more income for the power that will at last prompt huge budgetary development. Figure 3: Gungahlin-City Corridor (Canberra) Bus Routes (Source: Capital Metro Agency 2014) From the case investigation, the capability of light rail framework in Canberra can be assessed extremely well. Without the light rail framework, the vehicle costs because of movement blockage could have ascended to around $10 billion in a few years, though to the detriment of $800 million, the light rail system can be set up (Hensher, Mulley and Rose 2016). This is additionally more reasonable as far as business as it will create increasingly income every year with rising prevalence of the light rail framework. It is to be noted that a light rail project is very much feasible in a city like Canberra where there are a huge number of people use transport everyday for work and other purposes. Moreover, being a prestigious city, Canberra cannot lose its reputation due to only traffic blockages and intense rush of people during the peak hour (Olesen and Lassen 2016). In addition, these traffic clogs also cause massive amount of losses to the authority. As estimated above, light rail will ease the pressure on the rush and also generate strong revenues to the authority. However, the system design planning must be done by focusing specifically on the customer demands so that more passengers are interested to ride the light cars. Data Tabulation Capital Cost Estimate Cost Area $m Nominal Stops and Precincts 11 Roads and Utilities Infrastructure 118 Rail Alignment 96 Signaling, Rail Systems and Power 137 Depot and Stabling 59 Contractors Overhead and Profit 59 Total Construction Cost 479 Rolling Stock 65 Total Alignment Costs 545 Escalation 65 Sub Total 610 Contingency 173 Total Project Outturn Cost 783 Cost Benefit (Estimated Values) Cost Scenario Value $m PV Project Benefits Transport Benefits 406 Land Use Benefits 381 Wider Economic Impacts 198 Total project Benefits 984 Project Costs Capex 619 Opex 204 Total Project Costs 823 Project Economic Indicators BCR (transport and land use) 1.0 Net Present Value (transport, land use WEIs) 161 BCR (transport, land use WEIs) 1.2 Estimated Daily Rail Patronage Time 2021 2031 AM Peak 3,946 5,193 Inter-Peak 4,848 6,587 PM Peak 3,607 5,012 Off Peak 2,718 3,414 TOTAL 15,120 20,207 6.2.4 Summary of operation, maintenance and lifecycle costs ($m) Capital Cost Element Cost Total Project Outturn Cost ($nominal, P75) 783 Less: Difference between P75 and P50 contingency (24) Total Project Outturn Cost ($nominal, P50) 759 Less: Escalation on Alignment Cost (65) Less: Escalation on Contingency (9) Project Outturn Cost ($real) 685 Plus Agency Costs ($real) 45 Costs for Economic Analysis Purposes (P50, $real) 730 Conclusion From the report, it has been clear that light rail will be an integral part of Australian transportation system in the near future. Along with serving the busiest districts of the big cities in the country, it will also attract tourists from other countries if the service provided in reliable and customer-centric. This light rail installation project is outlined in a manner that it is expected to become an incorporating variable for the transportation arrangement of the territory. Moreover, the light rail route will go about as a connector amongst roadways and the heavy rails at different parts of the city. The course has also been planned such that the passengers can easily access different method for transport after leaving the rail car. The light rail course will touch a few noteworthy parking spots and in addition, real transport terminals, ship ghats, large rail stations, and so on. This course additionally goes through most of the busiest parts of the city that include financia l districts, universities, museums, offices and other places of public and tourist interests. From the case analysis, the capability of light rail framework in Canberra can be assessed extremely well. Without the light rail framework, the vehicle costs because of movement blockage could have ascended to around $10 billion in a few years, though to the detriment of $800 million, the light rail system can be set up. This is additionally more reasonable as far as business as it will create increasingly income every year with rising prevalence of the light rail framework. Recommendations The following recommendations can be provided in the wake of analysis of the report. The new light rail courses ought to be made alongside the normal roadways also. The actual road areas ought not be diminished or it will bring about more activity blockage. The power must underscore on the advancement and reestablishment of close-by territories for expanding benefits from the revenues generated from tickets. 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