Kingscote Airport Business Case Appendices - Kangaroo Island ...

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8.4.3 Security Screening CostsIn addition it is estimated that an annual running cost of $800,000.00 would apply for theupgraded security screening for Scenarios 2, 3 and 4. This value is based on the assumptionthat six personnel will be required for an average of four hours per day (2 outbound flights andmanning required for 2 hours for each flight), 365 days per year to run the security screeningprocess. At an estimated $80 per hour, this equates to approximately $700,000.00 per year, withan allowance for an additional $100,000.00 per year for annual incidental costs associated withthe screening process (e.g. equipment servicing and calibration, training of new personnel, etc.).This annual value is consistent with the anticipated cost (informally advised) to operate thesepassenger and baggage screening services at Port Lincoln Airport costs of a newly installedscreening process.8.4.4 Annual Costs SummaryWhen combined with the maintenance costs associated with each corresponding scenario aswell as the running costs of the security screening process, Table 8-5 shows the estimated totalannual cost of the airport for each scenario.Table 8-5Total Annual CostsScenarioTotal Annual CostsScenario 1 $ 334,789Scenario 2 $1,453,263Scenario 3 $1,537,584Scenario 4 $2,094,1968.5 Anticipated Cash FlowIrrespective of the Scenario adopted, it is feasible for the construction of the upgrade project tobe undertaken in a single financial year. Generally favourable weather conditions could beexpected between 1 October and 31 May. Also, there is no reason why the airside facilities andthe terminal building construction could not take place concurrently.However, that implies that all design work would have been completed in the previous financialyear, and possible some commitment would be made to preparatory works. This could equate to10% of the total project value.In addition, all construction work would be subject to a 12-month defects guarantee, possibleamounting to 5% of the total project value. This portion would not have to be expended until theyear following construction.In summary, project cash flow is likely to be spread over 3 years as follows: Year 1 Design and Preparatory Works 10% of total project cost Year 2 Construction 85% of total project cost Year 3 Defects Guarantee Period 5% of total project cost8.6 Local Expenditure ProportionIt was assumed that scenarios 2, 3 and 4 were of significant enough size that a major civilcontractor from the main land would most likely be awarded the contract. Therefore the majorityof the wages would not be retained on the Island.Table 8-6 on the following page shows a summary of the spending for each of these scenariosboth on and off Kangaroo Island. These costs are inclusive of GST and contingencies.The following items summarise which costs were believed to be completely local expenditure:-Ref No. 20120935DR1A Kingscote Airport Infrastructure Study Report 27
Supply of sand material; Supply of pavement material (excluding rock for spray seals and hot-mix seals); Contractor employee accommodation and meals.Table 8-6Summary of Spending BreakdownIsland SpendingMainland Spending% of Total SpendingRetained on KIScenario 2 $677,566 $9,170,675 6.9%Scenario 3 $2,836,087 $13,853,230 17.0%Scenario 4 $7,918,284 $29,931,322 21.3%From Table 8-6 it can be seen that as the size of the upgrade increased, so does the localspending. This is largely due to the increased size of the runway and thus the increased volumesof pavement material required for these scenarios. In addition it should be noted that the largerprojects will also require a longer construction period and/or more contractors. This means thatlocal spending on accommodation and food will also increase during the construction period.The foregoing analysis almost certainly under-estimates the Kangaroo Island component of theproject cost. It is highly likely that Adelaide based contractors would make some use of locallabour, plant and subcontractors. Not all activities would require highly skilled or specialisedresources. However, it is difficult to quantify this additional local content. Some assumptions inthis regards could reasonably be made during the economic analysis, but no guidance is able tobe offered herein.Ref No. 20120935DR1A Kingscote Airport Infrastructure Study Report 28
Page 6: PRELIMINARY ASSESSMENTKangaroo Isla
Page 10 and 11: PRELIMINARY ASSESSMENTKangaroo Isla
Page 16 and 17: Kangaroo Island Airport Upgrade Bus
Page 18 and 19: Document History and StatusRev Desc
Page 20 and 21: 6 Terminal Building 166.1 Descripti
Page 22 and 23: 1 Introduction1.1 Scope of ReportTh
Page 24 and 25: 3 Future Development Scenarios3.1 S
Page 26: 4 Site Investigations4.1 OutlineA s
Page 30 and 31: Coober PedyKingscoteAccordingly, a
Page 32 and 33: For aircraft landing to the north a
Page 34 and 35: Table 5-1New Pavement ThicknessesPa
Page 36 and 37: In this Study, allowance has been m
Page 38 and 39: An additional 20% of the gross area
Page 40 and 41: 7 Landside Facilities7.1 Car Parkin
Page 42 and 43: This situation will require monitor
Page 44 and 45: 8 Capital Costs Estimates8.1 Introd
Page 46 and 47: Table 8-2Pavement Element Compariso
Page 50: Appendix AKingscote Airport - Curre
Page 60 and 61: Appendix CCalculations Terminal Bui
Page 62 and 63: Appendix DCapital Cost Estimates Sc
Page 64 and 65: Kingscote Airfield ReviewKangaroo I
Page 66 and 67: Kangaroo Island Airport Upgrade Bus
Page 68 and 69: CONTENTSContents ..................
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Kingscote Airport Business Case Appendices - Kangaroo Island ...

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