Download to read offline
![A
(14%)
B
(14%)
D
(14%)
I
([PERCENTAGE]) E
([PERCENTAGE])
L
([PERCENTAGE])
E
(8%)
K
([PERCENTAGE])
J
([PERCENTAGE])
E
([PERCENTAGE])
E
([PERCENTAGE])
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([PERCENTAGE])
TOP 5 investment priori4es to help ensure our long term compe44veness
Improved transport links between ci1es e.g.
HS2, HS3 Northern Powerhouse
Improved transport linkages within ci1es and
city regions e.g. Cross Rail 2
Increased airport capacity in the South East
Conven1onal Power Genera1on,
Transmission, Distribu1on
Increase Renewable Energy
Systems Improvement e.g. electrifica1on
Improving UK's main Trunk Roads and
Motorways
Improving Local Road Transport
Flood Defense / Climate Resilience
Ranking Priority
1st
A
B
Improved Transport between ci1es
Improved transport within ci1es
3rd C Digital & IT Infrastructure
4th D Airport Expansion in SE
5th
E
F
G
H
Trunk Road & Motorway Improvement
Increased Renewable Energy
Urban Housing
Social Infrastructure
9th
10th
11th
12th
I
J
K
L
Conven1onal Power
Flood Defence / Climate resilience
Local Road Transport
Systems Improvements, Electrifica1on
Cities & Infrastructure: Pulse Survey
Single most important areas for Government and policy makers to ensure growth and compe44veness
Na4onal Infrastructure 28%
23%
20%
Beker, integrated inter- urban transport systems
Long term na1onal infrastructure plan with cross party support
Na1onal clean power strategy + support systems
City & City Regions 22%
20%
17%
Beker public transport systems
Beker, integrated mul1-modal transport systems
Devolu1on
Rural 52%
10%
7%
Broad-Band
Community Investment
Planning policies that support economic development](https://image.slidesharecdn.com/c4ir1sharratt-170313123823/75/Global-C4IR-1-Masterclass-Cambridge-Sharratt-WSP-2017-19-2048.jpg)
Uploaded byJustin Hayward
Global C4IR-1 Masterclass Cambridge - Sharratt WSP 2017
The document discusses the critical role of city regions in the global economy, emphasizing their contribution to GDP and projected infrastructure spending of over $40 trillion to support urban growth. It outlines the challenges faced by cities, including resource constraints and social equity issues, while highlighting the importance of innovative financing models for infrastructure projects. Additionally, it calls for increased engagement with decision-makers regarding infrastructure's role in economic competitiveness and the need to attract new talent to the industry.
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Global C4IR-1 Masterclass Cambridge - Sharratt WSP 2017
- 1. Business Models forValue In Complex Infrastructure 3th February 2017 Professor Peter Sharratt Presented at Consortium for the 4th Revolution | Executive Briefing Day (#C4IR) Cambridge, UK 2-3 February 2017 | www.cir-strategy.com/events
- 2. Today the world’s largest 600 ci4es generate: Top 23 Mega-ci4es with just 1/20th world’s popula1on generate 14% global GDP. Metro-regions are 2% of the world’s surface and generate 80% of the world’s wealth. 20% of global GDP coming from 190 ci4es in North America & Canada. In 15 years’ 1me.... 2 billion (1/4world’s population) $64 trillion Will Generate 60% global GDP 1.5 billion (about 1/5th of the world’s population) Generate $30 trillion Over half of global GDP CITY REGIONS AS DRIVERS OF THE GLOBAL ECONOMY
- 3. Source: McKinsey Global Ins1tute Cityscope World’s top 10cities in the next 15 years: Rank By GDP By Growth By Population 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 New York Tokyo Shanghai London Beijing Los Angeles Paris Chicago Rhein-Ruhr Shenzhen Tianjin Dallas Washington Houston Sao Paolo Shanghai Beijing New York Tianjin Chongqing Shenzhen Guangzhou Nanjing Hangzhou Chengdu Wuhan London Los Angeles Foshan Taipei Tokyo Mumbai Shanghai Beijing Delhi Kolkata Mexico City Dao Paulo Mexico City New York Chongqing Karachi Kinshasa London Lagos Impacts 50% 60% 33% 12% 40% 10% Global GHG emissions World’s energy use Global resource consump4on Global fresh water use Global solid waste produc4on Global workforce employed Global Urbanisation
- 4. NEW URBAN MODELS $23bn– of which 1/3 was infrastructure
- 5. Re-inventing Growth: CriticalNational Infrastructure Renewable energy pumping systems on the canal Source: Foster + Partners Red 2 Dead
- 6. Cities and CityRegions are the power house of the global economy and will continue to grow in importance. The projected infrastructure spend to support urban economic growth and development is estimated to be over $40 trillion. Today’s Cities Urban growth challenges are increasingly about global security, energy and resource constraints, re- alignment of the global economy, social equity and demographic issues and the impacts of disruptive change. CITY REGIONS AS DRIVERS OF THE GLOBAL ECONOMY
- 7. Line enables up to 200,000 new homes and has a Housing Land Value upliS of £15bn Note – Na1onal Rail Abstrac1on = 13% (loss of fare box revenue on other lines) The indirect contribu1on is projected to be somewhere between 160 - 212% of the costs. Development phase 5-6 years | 10-12 year delivery phase | due to be opera1onal 2032. Capital Funding SourcesCrossrail 2 Opera1ng Surplus Business Rates Supplement Mayoral CIL Re-sale Land/Property Council Tax London Contribu4on 11.6% 20.3% 16.9% 6.3% 1.4% 56% THE CHALLENGE OF PAYING FOR ECONOMIC INFRASTRUCTURE Tax Increment Financing (TIF) Incremental Business Rate Income Community Infrastructure Levy Borough (CIL) Mayoral CIL Stamp Duty Land Tax (SDLT)
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- 9. WSP TFL BRIEFING: THE ROLE OF TRANSPORT IN MEETING THE MAYORS STRATEGIC OBJECTIVES FOR LONDON Heathrow Gateway Clapham Junc1on Earls Court Opportunity Areas Areas for Intensifica4on 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Bexley Riverside Bromley Canada Water Charlton Riverside City Fringe/ Tech City Colindale/Burnt Oak Cricklewood /Brent Cross Croydon Dephord Creek /Greenwich Earls Court & West Kensington Elephant & Castle Euston Greenwich Peninsular Harrow & Wealdstone Heathrow Ilford Isle of Dogs Kensal Canal Side Kings Cross St Pancras 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Lewisham, Cahord & New Cross London Bridge, Borough, Banks. London Riverside Lower Lee Valley Old Kent Road Paddington Park Royal Old Oak Common Royal Docks Beckton Waterfront Southall Thamesmead & Abbey Wood Tokenham Court Road Upper Lee Valley Vauxhall, Nine Elms, Ba`ersea Victoria Waterloo Wembley White City Woolwich 39 40 41 42 43 44 45 Farringdon / Smithfield Harringay Heartlands Holborn Kidbrooke Mill Hill East South Wimbledon / Colliers Wood West Hampstead Interchange Red = projects we are currently engaged on
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- 12. ‘ the scaleof the cuts means we need to completely re-think the role and structure of the city council and how we achieve the outcomes we seek ….. This is the end of Local Government as we know it. ‘ Sir Albert Bore, Leader of Birmingham City Council, 2014 ‘Snap-Shot ‘ City Profile • Birmingham is the largest municipal authority in Europe and is underperforming • Birmingham’s GVA is lowest of the core cities at £19,523 • UK’s second largest city ONS predict a population growth of 85,000 between 2011 – 2021 to • 1,160,100 – an increase of 8%. • Overcrowding rose 3.6% in 2001 to 12.4% in 2011 • Ethnicity is more diverse that the UK average 47% BME. • 22% current population born outside the UK • 44% primary and 38% secondary school children have English as second language. • Youngest population of any European City: 46% population under 30 years • 11% growth in pensioners 2011 to 2021 • Population 85yrs + expected to grow 30% between 2011 – 2021. Revenue Challenge • 90% from central Government ( ring fenced for public service delivery) • 10% from Council Tax. • By 2018, cumulative Revenue Support Grant will reduce by 50% Key Growth Challenges • Maintaining public service commitment with a reducing funding from central government. • Housing shortage • High localised deprivation • Securing private sector Inward investment • Having a clear vision of a City Government Reform for 2020 2015 2016 2017 2018 2019 2020 Core Grant £403m £353m £293m £256m £260m £264m % Change -14% -21.3% -12.4% -16.9% -12.9 % +1.6% % Cumulative Change -14% -32.3% -40.7% -50.6% -57% -56.3% City Council Business Plan CITY CITY STRATEGIC CHALLENGES
- 13. Strategies for LVC: Extend high densitycentral core areas to city fringe Population Dispersal to South East Region New Settlements: Eco-towns (Land Release: Brownfield + Green-Belt) Suburban Intensification Access Charges New Infrastructure Land Value Capture New Finance Models MODELS FOR TRANSPORT ENABLED DEVELOPMENT Focus on Supply Side: How projects are brought to market. Less on ‘Demand Side’ – how projects are delivered + financed Use tax incentives to boost affordability for Public Sector Develop models to release Capital from existing surplus Or underutilised Public assets To invest capital in new projects. Public Sector Social Value Funds SWF / Govt Bonds
- 14. ‘One Belt, OneRoad’ – China’s Silk Road Initiative will create A connected global economic infrastructure. Projects Completed or Planned 2015 Source: Merics – Mercator Institute NEW INVESTORS
- 15. Collaboration between Govt,industry and 9 research organisations. CIVIL SOCIETY NON- ALIGNED ORGANISATI ONS OPINION FORMERS PRIVATE ORGANISATI ONS PUBLIC SECTOR ENTERPRISE PUBLIC DEBATE GOVERNMEN T SUPRA- NAT8IONAL ENTITIES PUBLIC PRIVATE PARTNERSHIPS CIT Y Regi ons UNDERSTANDING COMPLEXITY AND HOW THINGS HAPPEN ….
- 16. Geographic Informa1on System (GIS) applica1ons can enable organisa1ons to visually assess the Likelihood (Vulnerability, Threat and Target Akrac1veness) of targeted, environmental and situa1onal business risks on a single, integrated plahorm. This empowers risk stakeholders to take key decisions based on enhanced situa1onal awareness and visualisa1on of simultaneous data sets. Our team work with organisa1ons to iden1fy specific data ‘layers’ from a comprehensive à la carte selec1on falling into the five categories (listed leS) recognising throughout this process that each business’ individual characteris1cs oSen determine risk exposure and that internal risk appe1te defines controls. Together, these layers provide a detailed Risk Opera1ng Picture (ROP). sHORAS outputs are tailored to client requirements. ROPs can be included in wriken GRA reports or delivered as stand-alone KMZ/KML files, augmented by dashboard repor1ng (see below), for inclusion within investment risk appraisals or as part of op1ons tes1ng for na1onal, regional , district or site level appraisals. Geopolitical & Macroeconomic Socio-economic Physical Security EnergySecurity & CNI Environmental Sustainability Risk and Value Management Tools Visualising Loca4on Intelligence for Infrastructure eco-systems Theme Anti-Bribery & Corruption Compliance Overseas Investment Risk Global Environmental Threats Regional Location Intelligence District
- 17. Total UK Carbon1.215 million t Case Study: Generic Total Cost to Serve model for Data Centres DATA CENTRE ‘COST TO SERVE’ MODELS INPUTS Engineering – Tier rating, IT load per hall, number of halls, PUE Technology – Applications, server complexity, rack size, IT load projected growth Real Estate – Years to plan for, location, site cost, inflation OUTPUTS Engineering – area required for plant, energy and carbon tax costs Technology – IT Load per rack & hall, number of servers and racks required, costs (IT hardware, operating, migration) Real Estate – site size required, construction costs, maintenance and running costs Facility parameters defined together with cumulative total cost of ownership and spend profile for the life of the data centre.
- 18. Cities & Infrastructure:Pulse Survey How strongly do you agree/disagree with the following statements? Agree Neutral Disagree The Government should con1nue to invest in major infrastructure projects 99% 1% - The Government should delay investment decisions un1l there is greater certainty on Britain's rela1onship with the rest of Europe 2% 4% 94% Ci1es should have greater fiscal / revenue control and decision taking powers on investment priori1es 73% 18% 9% The public don't understand the role of infrastructure in enabling growth 80% 7% 13% The industry should do more to engage key decision takers on the importance of infrastructure and development 94% 5% 1% Britain's leaving the EU will significantly weaken the UK Government's Environmental commitments and carbon reduc1on targets 42% 27% 31% The quality of our ci1es and the public realm will be of increasing importance in increasing our na1onal compe11veness should we leave the EU 79% 15% 6%
- 19. A (14%) B (14%) D (14%) I ([PERCENTAGE]) E ([PERCENTAGE]) L ([PERCENTAGE]) E (8%) K ([PERCENTAGE]) J ([PERCENTAGE]) E ([PERCENTAGE]) E ([PERCENTAGE]) C ([PERCENTAGE]) TOP 5 investment priori4es to help ensure our long term compe44veness Improved transport links between ci1es e.g. HS2, HS3 Northern Powerhouse Improved transport linkages within ci1es and city regions e.g. Cross Rail 2 Increased airport capacity in the South East Conven1onal Power Genera1on, Transmission, Distribu1on Increase Renewable Energy Systems Improvement e.g. electrifica1on Improving UK's main Trunk Roads and Motorways Improving Local Road Transport Flood Defense / Climate Resilience Ranking Priority 1st A B Improved Transport between ci1es Improved transport within ci1es 3rd C Digital & IT Infrastructure 4th D Airport Expansion in SE 5th E F G H Trunk Road & Motorway Improvement Increased Renewable Energy Urban Housing Social Infrastructure 9th 10th 11th 12th I J K L Conven1onal Power Flood Defence / Climate resilience Local Road Transport Systems Improvements, Electrifica1on Cities & Infrastructure: Pulse Survey Single most important areas for Government and policy makers to ensure growth and compe44veness Na4onal Infrastructure 28% 23% 20% Beker, integrated inter- urban transport systems Long term na1onal infrastructure plan with cross party support Na1onal clean power strategy + support systems City & City Regions 22% 20% 17% Beker public transport systems Beker, integrated mul1-modal transport systems Devolu1on Rural 52% 10% 7% Broad-Band Community Investment Planning policies that support economic development
- 20. Key Themes Cities & Infrastructure:Pulse Survey Housing was surprisingly not a major issue even though the public and poli<cians see housing as their most important infrastructure related issue (ignore immigra<on). If infrastructure wants to be vocal it should talk in the language of housing (development) that the public understands. Compe44veness We have been calling for greater infrastructure investment for years, we were on this journey anyway. Brexit doesn’t impact the desire or long term need for upgrading our transport networks that need it to cope with a growing popula1on and economy. Confidence Is Brexit Infrastructure’s opportunity to find it’s voice? Not only does it provide enormous benefits to the economy, we as an industry are significant employers of high end technical skills in our own right. Advocacy & Awareness How do we do a beker job in communica1ng the complexi1es and benefits of infrastructure and connected development ? Do we think that by persuading the public can we persuade government? How can we akract young bright people to the industry ? Engagement & Influence How can the industry do more to engage and influence decision takers and poli1cians ? What do we need to do beker ? 1 2 3 4 ‘ There is an exis<ng skills gap in this country. We want young people to see great careers ahead of them with the promise of world class iconic projects to work on, otherwise they may choose other industries. Major projects can help the UK to inspire the next genera<on of Brunel’s.’
- 21. Professor Peter SharrattMA, DipArch, MSt. IDBE, FRSA Director Strategic Consulting, WSP Parson Brinckerhoff Professor of Industry & Professional Practice, University of Westminster Peter.Sharratt@wspgroup.com 07713 - 985 833 m