Kingscote Airport Business Case Appendices - Kangaroo Island ...

Table 8-2Pavement Element Comparison (All prices exclusive of GST, contingencies, etc.)Item Scenario 2 Scenario 3 Scenario 4Sand Layer 150mm 180mm 230mmSub-base layer 220mm 330mm 270mmBase-course layer 150mm 150mm 300mmCost of new pavement (per sqm) $49.00/sqm $62.40/sqm $75.40/sqmOverlay layer Nil 150mm 300mmCost of overlay layer (per sqm) $0.00/sqm $15.00/sqm $30.00/sqmIn short, no overlay is required over the existing pavement to cater for development Scenario 2 –merely a new bitumen surface. An additional 150mm thick pavement course would need to beconstructed on the Scenario 2 pavements to cater for Scenario 3. This additional cost wouldamount $1,052,000 excluding GST, but the only savings in such early investment would beavoidance of the loss of the initial bitumen seal. The cost of the seal would be approximately$800,000 excluding GST, but if it is near the end of its service life its effective value at the time ofthe upgrade to Scenario 3, the effective “loss” would be much less than that and possiblyeffectively zero.Consequently, there appears to be no financial benefit in constructing pavements suitable forScenario 3 now when development scenario 2 is being adopted as the proposed strategy. Asimilar conclusion can be reached in relation to providing pavements suitable for Scenario 4,when the adopted strategy is Scenario 3.In relation to the terminal building, it will be seen from the capital cost estimates that provision -at the Scenario 2 development stage - of a building over-sized so as to cater for a future upgradeof the airport to Scenario 3, would involve an early investment of approximately $700,000. Inaddition, there would a small penalty associated with increased annual cost associated with thelarger building.8.4 Annual CostsAnnual costs will consist of both the cost of maintaining the airport infrastructure, thedepreciating value of the assets that make up the airport, and other ongoing costs that will applyto the running of the airport. For the purposes of this report no allowances have been made forthe provisions of services or utilities.8.4.1 Maintenance CostsIn addition to capital costs, the maintenance costs for each scenario (including Scenario 1) havebeen considered. These are summarised in Table 8-3.Table 8-3Summary of Maintenance CostsItem Scenario 1 Scenario 2 Scenario 3 Scenario 4Runway Pavements $11,500 $12,800 $16,200 $26,300Apron Pavements $2,500 $2,700 $2,700 $3,000Stormwater $2,000 $3,000 $3,000 $3,000Terminal $37,500 $151,000 $162,500 $306,900Lighting - $5,000 $6,800 $8,100TOTAL $53,500 $173,500 $190,200 $346,300It should be noted that maintenance costs have only been allowed for items of infrastructure thathave been included as part of the upgrades. Therefore maintenance for infrastructure such asRef No. 20120935DR1A Kingscote Airport Infrastructure Study Report 25