Cross River Rail: converting Hitachi Rail’s ETCS contract to an alliance mid-delivery
Advised Hitachi Rail on moving its European Train Control System contract for Queensland's Cross River Rail from design and construct to a multi-party project alliance while delivery was under way.
Hitachi Rail is delivering the European Train Control System (ETCS) for Cross River Rail. It is the signalling systems supplier to Queensland Rail and the State on the project. Cross River Rail is a new 10.2km line from Dutton Park to Bowen Hills, with 5.9km of twin tunnels under the Brisbane River and the CBD. ETCS will increase capacity on the inner city network and improve safety.
Part way through delivery, the parties agreed it was in the project’s interests to move from a design and construct contract to an alliance. Changing the model mid-delivery meant resolving the legal issues arising from work already done under the D&C contract. It also meant negotiating a new alliance with several parties.
We advised Hitachi Rail on the transition, including negotiating new terms for the multi-party project alliance agreement. Alongside the document work, we gave strategic advice that kept the negotiations focused and avoided unnecessary exchanges with counterparts. The ETCS works are now delivered by the Sequence Alliance of Hitachi Rail, Queensland Rail and the Cross River Rail Delivery Authority.
Martin Lovell, Partner commented:
“Changing delivery model part way through a project is not common. The settlement deed had to deal cleanly with the existing D&C position so the alliance could start on a sound footing for everyone. It was a privilege to help Hitachi Rail through that transition on one of Queensland’s most significant infrastructure projects.”
Martin Lovell, Partner, Piper Alderman
We continue to advise Hitachi Rail in relation to ETCS for Cross River Rail. We have also support Hitachi Rail on competitive tenders and negotiations for future ETCS and high speed rail projects in Australia and overseas.
Client feedback
“I engaged Martin and Juniper for a complex front-end transaction in which we were tasked with converting an on-foot, traditionally risk allocated D&C agreement to a collaborative alliance agreement mid-delivery, with the State and their partners. The team were commercial, experienced and exceptionally practical in their approach to issues, and I was consistently left feeling supported and advocated for. Of particular value was the team’s provision of strategic advice on top of the ordinary review work, which allowed me to make the most of the legal budget and deliver stakeholders with a considered, pragmatic approach whilst avoiding unnecessary exchanges with counterparts.”
Gemma Hinde, then Head of General Counsel & Compliance, APAC, Hitachi Rail
“Martin can find the simple, powerful point amongst the clatter and noise of a complex, messy deal. Martin manages to usefully combine being a hands-on-the-tools partner with an ability to look up to see the broader perspective of the deal.” “Juniper was a delight to work with. Juniper has a nose for detail and an ability to distinguish between the important and less important items of that detail.”
Bradley Galvin, General Counsel, Asia Pacific, Hitachi Rail
