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    Rail Case Study

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Value improvement study identifying up to $100M in capital savings for a bulk commodity rail project including execution strategy to realise the savings and maintain the existing project schedule.

The Background

To achieve sanction on a large international commodity-based project the owners needed to reduce costs associated with the rail component of the project, whilst achieving a very tight schedule.

The Siecap team were engaged to conduct a value improvement exercise to identify cost savings, assess the project’s schedule drivers and review the project’s contracting strategies.


How the Siecap team helped

  • Using a war-room style collaboration of rail specialists and experienced business analysts the team identified cost reduction opportunities relating to track configuration, civil design, construction and provisions
  • By conducting a series of stakeholder investigations, the team were able to ensure buy-in from all parties on proposed cost savings and execution strategies, as well as to ensure that all available options were considered.

Results

  • Low risk capital cost savings of $100M were identified
  • An execution strategy was developed that would maintain the existing tight project schedule while also accommodating changes required to achieve the improved value.
  • Assisted management team to develop next steps to ensure value was captured.

Case Studies