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.
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.
- 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.