Feasibility Study- CORS Network Tasmania Report February 2010

Transcription

1 Feasibility Study- CORS Network Tasmania Report February 2010 This project is supported by Cradle Coast NRM, through funding from the Australian Government s Caring for our Country

2 Feasibility Study- CORS Network Tasmania Report February 2010 This project is supported by Cradle Coast NRM, through funding from the Australian Government s Caring for our Country Sinclair Knight Merz ABN Orrong Road, Armadale 3143 PO Box 2500 Malvern VIC 3144 Australia Tel: Fax: Web: COPYRIGHT: The concepts and information contained in this document are the property of Sinclair Knight Merz Pty Ltd. Use or copying of this document in whole or in part without the written permission of Sinclair Knight Merz constitutes an infringement of copyright. LIMITATION: This report has been prepared on behalf of and for the exclusive use of Sinclair Knight Merz Pty Ltd s Client, and is subject to and issued in connection with the provisions of the agreement between Sinclair Knight Merz and its Client. Sinclair Knight Merz accepts no liability or responsibility whatsoever for or in respect of any use of or reliance upon this report by any third party. The SKM logo trade mark is a registered trade mark of Sinclair Knight Merz Pty Ltd.

3 Contents EXECUTIVE SUMMARY 1 1. Introduction Purpose Terms of Reference Background to the Study Acronyms 4 2. Background What is a CORS How do CORS work? CORS RTK Clusters CORS Network RTK (NRTK) CORS Utilisation Industry uses 7 3. Consultation Summary Review of Current Tasmanian CORS Infrastructure Background Government CORS Private Sector CORS Emerging CORS Summary Case Studies Organisational Roles in the Delivery of Precise Positioning Services Victoria NSW Summary CORS Network Assessment Role of Government Network Needs Existing Enabling Infrastructure Cost estimates Management Options Pricing Options Break-Even Analysis 38 SINCLAIR KNIGHT MERZ PAGE i

4 7. Market Assessment Summary table Agriculture Technology Use in Agriculture Mining Technology application in Mining Construction Surveying & Spatial Industries Technology application in Construction and Surveying Other industries and user groups Summary Funding Options Conclusion & Recommendations 52 Appendix A - People Consulted in the Preparation of this Report 54 Appendix B References 56 SINCLAIR KNIGHT MERZ PAGE ii

5 Document history and status Revision Date issued Reviewed by Approved by Date approved Revision type /01/10 CM PWD 29/01/10 Draft /02/10 CM PWD 28/02/10 Final Issue Distribution of copies Revision Copy no Quantity Issued to Anna Renkin Cradle Coast NRM Scott Strong - GIB John McPhee - TIAR Anna Renkin Cradle Coast NRM Scott Strong - GIB John McPhee - TIAR Printed: 17 March 2010 Last saved: File name: Author: Project manager: Name of organisation: Name of project: Name of document: 16 March :45 AM Final Report Paul Digney/ Claire McNees Paul Digney Cradle Coast NRM Feasibility Study- CORS Network Tasmania Final Report Document version: 1.1 Project number: VW04808 SINCLAIR KNIGHT MERZ PAGE iii

6 EXECUTIVE SUMMARY There has been an evolution in the use of Global Navigation Satellite Systems (GNSS) over recent years with substantial technological improvements enabling GNSS to achieve real-time, active and accurate positioning information. These improvements have resulted in a broadening of the existing user base, opening up a range of new commercial applications such as agriculture, mining and construction. This technology provides significant improvements in the operating efficiencies of these industries, such as the reduction in fuel and fertiliser costs from automated machine guidance in agriculture and improved ability to track and position assets and the general automation of manual tasks. At present within Tasmania precision GNSS technology has been accepted to varying degrees by a number of industry and government sectors, facilitated by numerous Continuously Operating GNSS Reference Stations (CORS). The work of this report has shown that the uptake of the technology to a broader array of industries is being mitigated by the relatively high cost of the technology, the lack of coverage of current CORS, and the uncoordinated and ad hoc approach to the establishment of infrastructure to support precise positioning. The purpose of this study was to provide a better understanding of the current status and use of CORS infrastructure and associated GNNS applications within Tasmania, investigate the current constraints for coordinated development, and determine the feasibility of the existing and emerging markets to support a unified and extended CORS network. Consultation with key stakeholders, including current CORS operators and users of GNSS, has highlighted strong support for further development of positioning infrastructure, with a need for coordinated strategic leadership, providing a fully interoperable state-wide network of CORS stations located to support real time precise positioning. Whilst to date government at all levels has been involved in either establishing or using CORS technology, its ongoing role in facilitating the uptake of CORS needs to be clarified. Is it one of policy development, or of active involvement with industry to provide the base CORS network from which value-added services can be developed? Clearly the market alone is not able to collaborate or provide the required leadership in the provision of new skills and dedicated resources needed to deliver reliable and sustainable positioning services. Estimated indicative costs for infrastructure development and subsequent network operation and service delivery are provided in this report. Combining these estimates with an assessment of existing and future market requirements has shown that Tasmania could sustain a state wide CORS network. In addition, depending on the level of funding provided and the pricing policy used, a network could become revenue positive in the long term. SINCLAIR KNIGHT MERZ PAGE 1

7 Importantly, this report is not a full benefit cost analysis. It is recommended that Cradle Coast NRM present this report to the State Government to pursue funding for detailed design of the Tasmanian CORS network and re-confirm feasibility in light of the exact scale and nature of the network, pricing and management approach decided. SINCLAIR KNIGHT MERZ PAGE 2

8 1. Introduction 1.1. Purpose Positioning technology is undergoing rapid and continuous development, with a number of Australian States exploring the capabilities of GNSS and associated CORS infrastructure with the ability to broadcast corrections for accurate real-time positioning, supporting an ever increasing number of user applications. In late August 2009, Cradle Coast Natural Resource Management (CCNRM) sought interest from various consultants to undertake an investigation into the feasibility of developing a shared Continuously Operating Reference Station (CORS) network in Tasmania. The study was primarily focused on reviewing the current use of Global Navigation Satellite Systems (GNSS) within Tasmania and the ability of the current and future applications of the technology to support the establishment of a state-wide CORS network, and to explore the possibilities for attracting investment, supporting funding applications and promoting a shared network. Sinclair Knight Merz (SKM) was engaged by Cradle Coast Natural Resource Management to investigate the feasibility of establishing a CORS network in Tasmania Terms of Reference This report is intended to assist Cradle Coast NRM better understand the current status and use of CORS infrastructure and associated GNSS applications within Tasmania, and investigates the current constraints for coordinated development and the feasibility of the existing and emerging markets to support a unified and extended CORS network, thereby providing greater efficiencies and competitive opportunities for Tasmanian industry. More specifically this report provides: Details of liaison with relevant stakeholders from potential user groups and users; A review of existing infrastructure (government and privately owned) in Tasmania and elsewhere to help understand network compatibility requirements and arrangements An assessment of potential network users and operators, outlining key benefits and specific technology requirements A review of potential limitations or constraints An indication of potential partners and/or investors Construction and operational cost estimates, investment options and recommendations for further development SINCLAIR KNIGHT MERZ PAGE 3

9 1.3. Background to the Study To date, the development of CORS within Tasmania has been at best ad hoc and user dependant with varying levels of services and spatial accuracies provided. Whilst there have been recent moves to bring together the various stakeholders and providers to better coordinate CORS development and increase uptake of the technology, there clearly needs to be a fresh approach, with a much stronger commitment to identifying the outcomes required from the process. Cradle Coast NRM, which actively assists communities in north-west Tasmania, have identified, through involvement with key agricultural groups, the need to better understand the current status of CORS infrastructure and development within Tasmania, and the need to investigate ways forward to realise a sustainable level of infrastructure and network management. Steering Committee Cradle Coast NRM established and chaired an external steering group to provide advice during the study. The group comprised: Cradle Coast NRM (Anna Renkin) Geospatial Infrastructure Branch, DPIPWE (Scott Strong) Sustainable Land Use Section, DPIPWE (Jason McNeill) Vegetable RD&E Centre, TIAR (John McPhee) Tasmanian Broadband Development Board (David Anderson) The committee met twice during the course of the study, as well as individually. The committee reviewed the draft report prior to its finalisation Acronyms AHD83 Australian Height Datum 1983 CORS Continuously Operating Reference Station DCDB Digital Cadastre Data Base DGPS Differential Global Positioning System GDA94 Geocentric Datum of Australia 1994 GNSS Global Navigation Satellite Systems GPS Global Positioning System SINCLAIR KNIGHT MERZ PAGE 4

10 GPRS GSM ITRF NTRIP NRTK RTCM RTK General Packet Radio Service Global System for Mobile communications International Terrestrial Reference Framework Network Transport of RTCM via Internet Protocol Networked Real Time Kinematic GNSS Radio Technical Commission for Maritime Services Real Time Kinematic GNSS SINCLAIR KNIGHT MERZ PAGE 5

11 2. Background 2.1. What is a CORS A CORS is a continuously operating survey quality GNSS Reference Station. It is permanently installed in a suitable location one with uninterrupted sky visibility and access to reliable power and communication. CORS continuously record, distributes and archive GNSS satellite data and when used in conjunction with a second roving GNSS receiver enables the roving unit to accurately determine its position How do CORS work? In order to achieve precise cm level real-time RTK positioning using GNSS, at least two survey grade, dual frequency GNSS receivers (base/rover) with associated communication equipment are required. At least one unit, a base, is positioned on a known point to measure the GNSS observables and calculate position correction data which is then transmitted in real time, locally via UHF/VHF radio or via the internet over a mobile phone, to a roving unit operated on a tractor, truck, etc. This type of RTK sees the rover typically limited to a 20 km range from the base to achieve cm level horizontal accuracies CORS RTK Clusters CORS RTK clusters are based on the traditional single baseline solution of a GNSS base/rover pairing, except the roving user/subscriber has many permanent reference stations to select from based on the optimum baseline distance and communications link. CORS RTK clusters have generally evolved as an ad-hoc infrastructure at a local level using proprietary GNSS communication standards. In these instances, the relationship of the CORS to the reference frame generally isn t required and consideration is often not given to more than 1 type of user. For instance, RTK clusters have become particularly popular in the agricultural sector where RTK has been adopted for machine guidance. The sole focus is the repeatability of the measurement so that users can realize precise pass-to-pass measurements for applications requiring a high level of precision such as tractor auto-steering. RTK Cluster correctors are typically delivered using data radios with spread spectrum or other data radio technology. Since they are not linked or networked, they require a spacing of approximately kilometres in order for the users to be able the realise the required horizontal accuracies and maintain rover to base communication. SINCLAIR KNIGHT MERZ PAGE 6

12 Unlike CORS RTK Networks, RTK Clusters are rarely, if ever establish by government entities. They are typically established by GNSS equipment dealers or by a user cooperative CORS Network RTK (NRTK) Real Time RTK Network s (NRTK) are a more complex, multi-purpose infrastructure where absolute accuracy, reliability and robust precise positioning are provided. The complexity, and greater cost, of NRTK lies in the software that controls and monitors the network of CORS stations. It creates the optimized corrections based on data from many or all of the reference stations in the network at a spacing of approximately 70 km. Typically, corrections are delivered via NTRIP (Network Transport of RTCM via Internet Protocol) through wireless (mobile phone) networks. It means that very few GNSS receivers are required to give coverage to a large area, and users only need one high grade GNSS receiver to obtain an accurate position, which is inherently superior in quality to a single base (or CORS cluster ) solution and capable of being quality monitored. NRTK are generally well planned infrastructure, sometimes based on existing CORS networks that are expanded and densified. They are typically tied to, and monitored for stability in, the national reference frame and operate using open standards and protocols CORS Utilisation Historically, the high cost of survey grade GNSS receivers and the level of user expertise necessary to achieve cm type positional accuracy meant that predominantly only survey professionals used them. In recent years, the development of cheaper no frills RTK GNSS units and the advent of CORS have resulted in the mass market use of GNSS positioning technology. Precision GNSS positioning is now used extensively across many sectors including asset managers, emergency response, forestry, navigation and transport organisations. However, the greatest numbers of users are the operators of heavy machinery in agriculture, construction and mining. This number is continually growing Industry uses A range of industries are able to benefit from the establishment of a CORS network/clusters. The following summarises the application of GNSS by industry: Agriculture Agriculture currently represents the fastest growing sector using GNSS. The sector is benefitting from the improvement in efficiencies and increased crop yields within Australia. GNSS is currently SINCLAIR KNIGHT MERZ PAGE 7

13 used in agriculture for a number of applications described under the umbrella of Precision Agriculture. These include machine guidance, yield mapping, variable rate application of inputs (fertiliser, seed, water, etc.) and digital elevation mapping. While machine guidance is the most widely adopted application, the technology is essential to the implementation of Controlled Traffic Farming (CTF), a technique that involves constraining the movement of tractors to permanent wheel tracks year after year by fitting tractors with GNNS steering guidance. The implementation of CTF goes beyond guidance, and requires integration of machinery and farm management operations. However, 2 cm real time positioning is an essential requirement of this farming system. The use of CTF helps reduce fuel costs (typically 50-70%), reduce tillage equipment costs, boosts crop yield (10-15%) and improves quality. Another major benefit of the system is the improvement of soil biology and structure, leading to improved water holding capacity and more efficient capture and storage of water. Accurate guidance also allows inter-row sowing, which involves sowing seeds between the rows of the previous crop, to maximise use of residual fertilisers, improve disease control and water capture, and improve the operation of seeding machinery. Construction and Civil Engineering The predominant use of GNSS in this sector is for machine guidance for the building of roads, highways, rail, bridges and water and electricity infrastructure. As with other sectors, there is an increasing uptake in the use of the technology, with most major suppliers experiencing growth in sales of precision machine control systems. Mining The use of GNSS for accurate selective mining is well established. The application involves the fitting of GNSS equipment to excavators to allow precise positioning of equipment for dig operations. Surveying & Spatial Industry The surveying and spatial industry are the most mature sectors in relation to the use of GNSS and CORS networks. They have embraced the technology in all areas of operation and are maintaining the lead in the use and development of CORS to provide maximum benefits in the use of GNSS. GNSS also provides fundamental data for the continual maintenance and development of the national horizontal and vertical reference frames GDA94 and AHD83, with CORS in effect the modern trig station network which underpins all spatial data. SINCLAIR KNIGHT MERZ PAGE 8

14 Science & Research Real time and static GNSS data is critical to the execution of many current and future scientific research programs. GNSS data, combined with other forms of observations, contribute significantly to research into global climate change, sea level studies, modelling of the upper atmosphere in relation to storm and weather prediction, crustal strain and seismic deformation, and surface expression of hydrologic loading. SINCLAIR KNIGHT MERZ PAGE 9

15 3. Consultation To assist with understanding the current and future needs of GNSS users in Tasmania, and more generally seek stakeholder input into the feasibility of a shared CORS network, consultation was undertaken with a number of key groups and individuals. The list of stakeholders, developed in consultation with the project steering committee, consisted of the major users of GNSS within Tasmania. These groups were considered the most likely to provide relevant information to assist with development of a CORS network. The consultation consisted of a combination of letters requesting specific and general feedback, with several informal verbal approaches to 30 various stakeholders. A total of 18 responses were received from the list of known and potential users/suppliers, which was considered a good response. The requested feedback was designed to gather details about users current and expected use of CORS and its likely impact on their application of GNSS. The following feedback was specifically requested: Interest in the development of a CORS network across Tasmania; Use of CORS? - how would a CORS network be used by your industry/sector, what general benefits would it generate; Network needs and requirements including: Anticipated geographic areas of service; Types of service preferences, accuracies etc. Overwhelmingly, the response from stakeholders was highly supportive of the development of a state-wide CORS network, with groups such as the Tasmanian Spatial Information Council and the Tasmanian Agricultural Productivity Group indicating that the promotion of the use of GNSS technology and the development of a CORS network was highly consistent with their strategic plans and overall objectives. All feedback demonstrated an understanding of the benefits of positioning infrastructure and that the reliable delivery of real time precise positioning will not only significantly support the current use of GNNS but will facilitate future uptake of GNSS technology. Feedback from Government departments highlighted a number of areas which would benefit from data and services derived from a CORS network. Areas included geospatial infrastructure, water assessment, land conservation, earth sciences and natural resource management, such as the accurate relocating of monitoring sites for physical conditions of rivers and streams and extent of SINCLAIR KNIGHT MERZ PAGE 10

16 weed infestation. There was also a clear held view that a reliable state-wide CORS network would increase Tasmania s productivity, economic competiveness and, as a result, improve Tasmanian exports. Feedback also suggested that to deliver the expected improvements in government and private sector business, the network needs the capacity to cover all rural and urban land in the state, with possible preference to agricultural areas. The network would also need the capacity to deliver RTK +/- 2 cm accurate positioning for agricultural applications such as machine guidance, controlled traffic farming and other aspects of precision agriculture. Many users indicated that the market for positioning services from CORS networks would increase rapidly in applications such as: agricultural uses; machine control (earth moving equipment, construction); asset tracking and management; environmental monitoring; geotechnical services; expanded survey services; all real time positioning applications; & all forms of mapping for GIS purposes; In addition to current GNSS users, GNSS resellers and current CORS operators within the State were also contacted to seek their views on CORS development and to better understand the opportunities for coordinating existing and planned infrastructure. The feedback from current providers highlighted the ad hoc approach to the development of CORS currently happening within Tasmania, with most CORS operators only maintaining base stations to support the sales and uptake of GNSS within their respective sectors. One such example was Tasmania Farm Equipment, a machinery dealer who provides agriculture GNSS systems to various agriculture contractors and farmers. They currently operate two stand alone GNSS base stations, one at Gawler and another at Deloraine, with plans to add an additional two sites as demand grows from the market and the areas requiring CORS coverage increases. All current commercial CORS operators indicated that they would prefer to see a single organisation take on the responsibility of coordinating CORS development within Tasmania, unifying existing CORS clusters and extending the network to provide reliable real time precise positioning services to all parts of the State. This approach is also supported by current users who, whilst understanding the benefits of CORS, are not sufficiently resourced with either funds or expertise to operate their own CORS and deliver reliable corrections. SINCLAIR KNIGHT MERZ PAGE 11

17 The following table provides a list of stakeholders contacted who provided feedback, including a summary of their response and any issues or concerns raised. Stakeholder Response Issue Tasmanian Spatial Information Council Local Government Association of Tasmania Tasmanian Government Spatial Committee Department of Infrastructure, Energy and Resources Department of Primary Industries, Parks, Water and Environment Latrobe City Council Circular Head Council / Waratah Wynyard Council Devonport City Council TASSIC was highly supportive of the development of a shared CORS network in Tasmania, which is highly consistent with its strategic plan and overall objectives. A number of councils indicated they already operate with an existing system (for example the stand alone CORS sites operated by Ultimate Positioning in Southern Tasmania). Other smaller councils currently do not have GNNS equipment. Committee expressed its support and acknowledgement of the fundamental and broad-ranging benefits associated with development of a State-wide CORS network. Demonstrated strong support for the development of CORS - "Any future CORSCORS network solution that could deliver +/- 2 cm accurate positioning service would be of immense value across a range of infrastructure areas, not only those of agriculture and construction Acknowledged that the department would have a clear role in the establishment and use of a CORS network and a strong interest in the potential benefits that would be derived from its use. Generally supported the development of CORS, believe the success of the network would hinge on State Gov involvement. Benefits identified include: improved state DCDB, allowing for more accurate mapping of existing and future council assets. Indicated support for a CORS network - "delivers the benefit of a high level of confidence in the spatial location of all but especially underground assets, which are then mapped" Would require better than 5cm positional accuracy for asset mapping. Indicated strong support for the development of CORS network, currently operating a base station mainly for asset capture maintenance, - not real time. However see a number of applications from a real time data stream LGAT raised concerns about the achievable l accuracy, and the associated service costs. Highlighted the need for improved Digital Cadastral Database (DCDB) to derive full benefit from CORS University of Tasmania School of Geography and Environmental Studies Building and Construction Industry Council Fully support the initiative, with people nationally and internationally likely to obtain and use Tasmanian CORS data, both soon after construction and then also well into the future for applications that already exist as well as those that are now just blue-sky or not even around. Building industry is continually looking at adopting technological advances and believes that there would be many segments of the industry that would embrace the productivity and innovation gains made from these opportunities. Data sets derived from CORS provide a form of enabling infrastructure and are highly important for science, both at present and into the future. SINCLAIR KNIGHT MERZ PAGE 12

18 Stakeholder Response Issue Tasmanian Agricultural Productivity Group TAPG is highly supportive of the development of a CORS network to support and further facilitate the uptake of GNSS technology with a strong ongoing commitment to innovative farming. TAPG has a watching brief on GNSS technology as one of three key priorities for the TAPG. Ben Lomond Water Southern Water Ultimate Positioning Pty Ltd (Trimble Agent) SmartNet Aus Stephen Jobson - Tasmania Farm Equipment Tom Butler - Agricultural Machinery Services Generally supported the development of CORS, had issues with accuracy of the state based cadastre and the difference between absolute and relative positioning. Demonstrated support for a CORS network. Factors such as pricing, availability and accuracy will influence Southern Water s ultimate commitment to support the CORS network development Ultimate Positioning currently operate three CORS sites in Tasmania, predominately servicing the spatial/ surveying and local Government markets. Have plans to extend if there is not a commitment from Government or other provider to establish a network in the State. CORS network seen as a key driver for the use and update of GNSS in the state. Currently providing real time and data products nationally based on existing CORS networks, such as Auscope and arrangements with other jurisdictions. Is interested in working with current CORS operators in the state to provide services to Tasmanian users and will consider establishing additional CORS for either single base or networked solutions in areas where there is market demand. Views the development of CORS as fundamental to the continuing use of GNSS in the Ag sector. Currently operates stations to service existing and growing user base, would prefer to see a state-wide operator take on the role of operating and delivering services to further concentrate on the end user and the application of GNSS for the use of farmers and contractors. Agricultural Machinery Services currently operate 5 GNSS base stations, one in the north-west and four in the State s centre. Operates base stations to support current users would however prefer to see a CORS operator take on this responsibility with a clear understanding of commercial requirements and service levels. Highlighted the need for improved cadastral boundaries to derive full benefit from an absolute positioning system Will continue to maintain and develop stand alone CORS infrastructure in the absence of a coordinated approach. Will continue to maintain and develop stand alone CORS infrastructure in the absence of a coordinated approach. Identified cost of the technology still a major impediment for potential users. Raised concerns over wholly government owned system, prefer to see a public/private model. Damian Darby Highlees Harvesting Currently operates three base stations covering approximately a 100 km area on the NW coast, with plans to extend base station in the Cressy area in the State s northern midlands. Operates base stations to support current users. Would prefer to see a CORS operator take on this responsibility with a clear understanding of commercial requirements and service levels. Operates an existing proprietary system, any new system would need to be able to be used with existing proprietary software and hardware. SINCLAIR KNIGHT MERZ PAGE 13

19 3.1. Summary The key messages from the consultative process in regards to CORS development and service delivery are summarised below. All stakeholders contacted supported the development of a CORS network, with a strong view that the development should be coordinated, in most cases by Government, to ensure provision for all industry sectors and associated applications within their geographic areas; Majority of feedback highlighted that a future CORS network that could deliver real time precise positioning would be of value to their interests, and improve productivity and efficiency and general economic advantage; Current commercial CORS operators are only maintaining and providing services from base stations to support their various markets and grow sales in those sectors, and have indicated a support for a single CORS network operator; Some existing users and providers are using proprietary systems (i.e. not industry standards), and would need to consider how any new services would integrate with those systems; The availability of real time precise positioning places additional pressure on the custodians of existing state-wide data sets, such as the Digital Cadastral Data Base (DCDB), to ensure they remain current and accurate for positioning applications. SINCLAIR KNIGHT MERZ PAGE 14

20 4. Review of Current Tasmanian CORS Infrastructure 4.1. Background A review was undertaken in consultation with existing and possible future CORS operators to gain an understanding of the current situation and planned activities in Tasmania. This review highlighted current CORS development in Tasmania and helps identify some of the key constraints and challenges to future development, such as service delivery, cost, network configuration and data management. Figure 4-1 Location of Existing CORS Infrastructure SINCLAIR KNIGHT MERZ PAGE 15

21 4.2. Government CORS The Commonwealth and State Governments operate and maintain between them five CORS within Tasmania. The primary function of these stations is to support science based activities such as earth sciences, sea level monitoring and geodesy. They also assist in further improving the horizontal reference frame determination for GDA94 and provide a direct connection into the International Terrestrial Reference Frame. All five sites provide real time data streams back to Geoscience Australia (GA). This data can currently be accessed free of charge through arrangement from GA in RTK RTCM 3.1 format for real time use over the internet or as a static data set for post processing. The five sites are located at the following locations 1. Burnie Co-located with Tide Gauge at Burnie Wharf 2. Round Hill Point Burnie 3. Liaweene * - Central highlands 4. Spring Bay * - South East Coast 5. Hobart Mount Pleasant. * Sites built under Auscope funding arrangements, joint GA DPIPWE maintenance agreement for their operation. In addition to the government operated stations shown above, a number of local government councils own and operate CORS for their own uses. These reference stations are owned by the Meander Valley Council (reference station located near Westbury), the Devonport City Council, Burnie Council and the Launceston City Council. The base stations are primarily used for local RTK positioning. Currently the reference stations are only turned on when RTK corrections are needed. Both the Burnie Council and the Launceston City Council reference stations are in locations close to other existing CORS Private Sector CORS The major private sector operator of CORS within Tasmania is Ultimate Positioning Pty Ltd who currently operates a regional CORS cluster within the State. The CORS, based in Hobart, Launceston and St Helens are cooperative ventures with DPIPWE (Hobart), Forest Enterprises Pty Ltd (Launceston) and Brett Woolcott Surveys (St Helens) respectively (P. Standon, pers. comm). The sites provide data for a range of users predominately for surveying/spatial requirements, but are also used by various councils for mapping of assets etc. The services provided by Ultimate Positioning include single base real time RTK and DGPS delivered over the internet using GPRS/GSM technology. Current costs for services are in the vicinity of $2000 for a 12 month SINCLAIR KNIGHT MERZ PAGE 16

22 submission. Only customers using GNSS equipment consistent with the base can gain access to these stations. Other private CORS operators include a number of agriculture technology resellers and machinery dealers. The two main operators are Tasmania Farm Equipment and Agricultural Machinery Services, based in the north of the state. Both companies operate a number of CORS clusters which support their growing machine guidance/precision farming business. Whilst both companies broadcast real time positioning via HF radio, only Tasmania Farm Equipment provides an open industry standard RTCM correction. Real time corrections from CORS operated by Agricultural Machinery Services are only provided to users with similar proprietary receivers and do not provide an industry standard real time correction accessible by users of other equipment. As well as machinery dealers, some agricultural contractors own and operate base stations. Damian Darby (Highlees Harvesting) currently operates three base stations (D. Darby, pers. comm.), two located on the north-west coast and a third at Cressy. All base stations are located on private farms and utilise non industry standard hardware and software for use with similar proprietary equipment installed on the tractor or irrigator. Damian has plans to expand the number of stations in the central midlands to cover a greater area. All organisations contacted have indicated they will continue to establish CORS in the absence of a coordinated approach to the establishment of a state-wide based CORS network, something they do not necessarily see as core business, but recognise as fundamental to their operations. In addition, whilst some current operators have discussed the option to link existing single base stations to establish a networked cluster in local areas to increase coverage and redundancy, there has been very little progress to coordinate discussion amongst operators to develop a shared network to reduce duplication and maximise return on investment Emerging CORS It is clear from discussions with a number of organisations there are plans to extend their existing regional base station clusters and establish additional CORS within the State. The plans are based predominately on the growing uptake of GNSS across existing industry sectors, with some looking to move into new areas such as earth moving machine guidance for construction. One company most likely to establish a CORS in the next six to twelve months is Walch Optics, a GNSS re-seller based in Hobart (R Walch, pers. comm.). Walch Optics plans to establish a CORS site in Brighton to provide real time corrections for survey set out and machine guidance to support the midland highway Brighton by-pass construction. SINCLAIR KNIGHT MERZ PAGE 17

23 As well as a growing number of CORS being established over the next several years, there are also some mainland based precise positioning service operators considering moving into the Tasmanian market. One such organisation, SmartNet Aus, have, or are negotiating, arrangements with a number of CORS network operators, such as the national Auscope network, to gain access to their real time CORS data stream. They are able to value-add this information using CORS network software to provide precise positioning services to subscribed end users anywhere within Australia via the internet. Another such provider is South Australian CORS Pty Ltd, who operates a private CORS network in South Australia. The current network consists of a combination of reference stations (SA CORS stations, precision farming base stations and community base stations). Whilst only operating in SA currently, the network is the result of two years of research and development of the technical and logistical aspects of CORS software and hardware, providing South Australia s precision farming, surveying, machine control, mining, logistics, fishing, local government and emergency services sectors with state of the art CORS facilities. From discussions with network management, it is clear there are intentions to expand this network to other states and jurisdictions, with Tasmania being one possibility over the next several years (D. Elliot, pers. comm.) Summary This report has shown there is a growing number of CORS operating in Tasmania, with the number of stations likely to increase over the next several years. It is also clear this has resulted in a proliferation of CORS, some of which are proprietary systems operated to service specific needs, which lock out other potential users. Currently, there is no incentive for operators to organize their activities and unify existing CORS clusters to create a state-wide network. This is partly due to the large commitment required to integrate and operate a larger network, and the difficulties of integrating various standards of GNSS base station technology. It is clear that for a state network to be a possibility there needs to be intervention by a single coordinating organisation, such as government, to engage with disparate organisations and single operators and persuade them to buy into the unified network. The alternative is to invest in new infrastructure to ensure the full economic and public benefits are realised without the cost of duplication. SINCLAIR KNIGHT MERZ PAGE 18

24 5. Case Studies Currently within Australia, the development of CORS supporting GNSS based precise positioning varies considerably, from privately operated single base stations servicing a single user through to networks of stations with national coverage run by Australian Government agencies. CORS network management in Australia is a topic of increasing importance to users, stakeholders and the nation as reliance on satellite based precise positioning and navigation and other ground based positioning systems becomes more wide spread. Over the last several years, as this importance has become more apparent and the commercial benefits much clearer, there has been a growing focus on the development of management models to identify and describe the roles played by various organisations in delivering precise positioning services. The following case studies review and identify the various approaches adopted by the Victorian and NSW governments, who have both committed multi-million dollar investments into positioning infrastructure over the next several years. Whilst the physical make up required to deliver centimetre accuracy GNSS corrections through the networks is the same in each the state, the models used to build infrastructure, manage the network and deliver services are significantly different Organisational Roles in the Delivery of Precise Positioning Services It is important to consider the organisational roles and responsibilities needed for the delivery of precise positioning services in order to identify the most appropriate management and delivery model. As indicated, there is a growing amount of study and research being undertaken into understanding the roles of organisations (particularly government) in this area, and the development of sustainable management and business models for ongoing delivery of what is now becoming an essential service. Two major contributors to this area have been Matt Higgins (Principal Survey Advisor and Manager Geodesy and Positioning, Department of Environment and Resource Management, Queensland government) and Martin Hale (Team Leader Operations of GPSnet, Department of Sustainability and Environment, Victorian Government). Both have provided valuable research into understanding the fundamental requirements of positioning infrastructure development, management and delivery of services and where the responsibilities of various organisations fit within those requirements. Matt Higgins, in his paper submitted for publication in the Journal of Spatial Science - Special Feature on GNSS (December 2008) presented a model for understanding organisational roles in the delivery of precise positioning services. This model (Figure 5-1) identifies five core roles that particular organisations might undertake. SINCLAIR KNIGHT MERZ PAGE 19

25 Specify Stations Network Process Deliver Specify System Own Stations Network the Data Process Network Deliver Service Target Density, Coverage, Accuracy, Reliability and Availability Site Quality Equipment Quality Geodetic Reference Frame Data Services Produced Data Access Policy Site Selection Site Construction Equipment Purchasing Station Data Comms Site Maintenance Equipment Replacement Cycle Data Comms from Network Stations Control Centre Quality Control of raw data Data Archive Copy of Network Data Processing Production of Data Streams Distribution of Data Streams Data Wholesaling Retailer Support Retail Sale of Data Products Marketing Rover Equipment support End User Support Liaison with User Comms Providers Governance Figure 5-1 A Model for Describing Organisational Roles in Precise Positioning Services (Higgins 2008) The model essentially breaks the process into discrete roles and identifies the tasks within each role. A single organisation can take on all roles, or multiple organisations could take on various roles within the model. A brief description of each role follows: Specify: In this role, the system is specified and the characteristics of the reference station network defined. Features include: site and equipment quality, data service provided and data access polices developed. Stations: This role involves the selection of sites, construction equipment purchases, installation, site maintenance and funding the depreciation of hardware/software for replacement at end of life. It is possible that within the network, various organisations may own, operate and maintain stations with the requirement for some type of arrangement between the network operator and the station owner for access to data, such as a site hosting agreement. Network the Data: This role is fundamental to the delivery of positioning services and is responsible for receiving, monitoring, quality control and storing of the data from all the individual reference stations. This role could, in some circumstances, simply involve gathering and storing data, bringing it together to forward on to the organisation responsible for network processing. SINCLAIR KNIGHT MERZ PAGE 20

26 Process Network: This role, along with network management, is at the core of reference network business and is responsible for issues such as processing network data and the production and distribution of correction data streams. This role can also involve data wholesaling and providing retail support to the role of service delivery. Issues around agreed service levels for users in relation to network performance and accuracy would also need to be addressed. Deliver Service: This role involves the retail of network data and products to the end user, and is likely to have a number of organisations or retailers offering services for different applications. In addition, there is the possibility of providing data to added value retailers. As well as retailing data, this role also requires marketing and end user support. Governance: Governance of the specification, development, maintenance and delivery of services is important to ensure each organisation understands its responsibilities in terms of business and legal issues, and more importantly, to give confidence to consumers that the service provided is reputable and can be relied upon for business critical applications. Martin Hale, in his Master s Thesis entitled Identifying and Addressing Management Issues for Australian State Sponsored CORS Networks (2007), recommends that a CORS Network Management Model (CNMM) should be based on partnerships, which takes advantages of the strengths of both public and private sector organisations. Figure 5-2 GNSS CORS Network Management Model (Hale, 2007) Under a partnership, the capabilities of each sector, such as the coordination and establishment of standards from government, and the innovation, marketing and distribution capabilities of the private sector, would better coordinate and deliver CORS network development and significantly increase the benefits derived than would otherwise be provided by each sector independently. SINCLAIR KNIGHT MERZ PAGE 21

27 In addition, under mutually acceptable royalties and/or data access and distribution agreements, a public-private partnership would maximise profits and allow revenues to flow back through each sector to sustain the CORS infrastructure and ensure required levels of service delivery Victoria The Victorian government has been very proactive in their commitment to positioning infrastructure, with the Victorian Co-operative CORS network, GPSnet TM commencing operation in Victoria boasts the only state-wide CORS network in Australia, with a total of over 40 stations the network is called Vicmap Position GPSnet TM. GPSnet TM provides sub-metre accuracy, real-time positioning across the entire state, with a denser sub-network clustered around Melbourne and environs delivering 2 cm accuracy, network RTK positions in real-time. Already the most advanced in CORS development of all States in Australia, the current network will be expanded with the addition of 57 CORS over the next 18 months, providing 2 cm accuracy, network RTK positions in real-time across the entire state. The Department of Sustainability and Environment (DSE), who has responsibility for Vicmap Position GPSnet TM, has coordinated and facilitated its development with cooperation from all levels of government, industry, academic institutions and the community. The Vicmap position CORS network infrastructure constitutes stations hosted by various third parties, where organisations external to DSE are invited to host GPSnet TM CORS using long-term, formal agreements to manage relationships and responsibilities. Other cooperative arrangements include agreements to contribute and participate to mutual benefit, including access to GPSnet TM services without charge (Hale, 2007). An example is Barwon Water, a water utility company and GPSnet TM foundation host who contributes CORS equipment and physically hosts GPSnet TM CORS at its head office building in Geelong, with additional sites located in the townships of Cressy (water tower) and Apollo Bay (water treatment plant). Barwon Water also hosts the GPSnet TM Central Server Cluster (CSC) in its information technology centre located in Geelong. SINCLAIR KNIGHT MERZ PAGE 22

28 Figure 5-3 Vicmap Position GPSnet TM Network 1 The installation and operation of the cooperative GPSnet TM CORS network, including associated CORS equipment, network connectivity, data transport costs and physical site hosting, is shared between DSE and GPSnet TM hosts, partners and contributors. However, where there is no local vested interest to fund or support the required infrastructure, sites are funded by DSE. To improve management and delivery of real time services for end users, the Victorian Government has made significant investment in dual commercial grade CSC processing centres, designed to work as an integrated system to increase service reliability to better than 99.98% target uptime. The data centres are critical to the operation of the network, providing both the central location for delivery of CORS data and the distribution of calculated networked real time corrections to users. The data centres also allow the network operator to monitor and maintain the networks, informing Vicmap project staff of outages or problems with communications resulting in data loss and reliability of positioning service delivery. Acquisition and funding the operation of the CSC computing facility hardware and software, and maintaining direct control over systems performance and data quality, is the sole responsibility of DSE. 1 Positioning Regional Victoria (PRV), Image 2009 < SINCLAIR KNIGHT MERZ PAGE 23

29 The pricing policy adopted by GPSnet TM conforms to national competitive pricing arrangements and to the Victorian Government spatial data pricing policy of cost recovery, which is currently under review. Access to the network real time positioning services and online post-processing is available at an annual fee of $2,200 (M. Hale, pers. comm.). Vicmap Position also provides bulk discounts to multiple licenses within single organisations. As the fees are also partly determined by the number of CORS sites and the network coverage, it is possible fees could change as the network moves towards a full state-wide coverage (M. Hale, pers. comm.). Over the last several years, Vicmap Position have moved to establish agreements with various Data Service Providers (DSP) and Value Added Resellers (VAR) to actively market and retail GPSnet TM products and services, setting pricing according to market expectations. The bulk of the delivery is now being managed by VARs who are marketing and actively selling the services to the end users on from Land Victoria. At present, a percentage from each licence sold goes back to the VAR on a commission basis. In summary, the distinguishing feature of the Victorian CORS network and management is the cooperative approach to infrastructure development and operation. This approach is underpinned by well established and comprehensive institutional, legal, operational and commercial policies and arrangements supported by government and private sector investment at the levels required to develop and maintain a unified state-wide CORS network NSW The CORS network in NSW first began in 2004, with an array of seven CORS sites predominately within the Sydney metropolitan area. This was made freely available to the public in 2005 under the auspices of SydNET (White et. al., 2009). The network, now known as CORSnet-NSW to better reflect the increased coverage area, currently has 28 stations. In 2009, the Land and Property Management Authority (LPMA) committed $7.25 million to expand the network to a total of 70 sites over the next five years. The funding also delivers additional resources to develop, manage, maintain and market the network and the services derived from it. This investment was deemed necessary to help mitigate duplication of infrastructure by other groups and facilitate take up of GNSS positioning in a wider range of markets and applications than is currently the case (White et. al., 2009). SINCLAIR KNIGHT MERZ PAGE 24

30 Figure 5-4 Current and planned future coverage of CORSnet-NSW (White et al, 2009) One of the major changes, besides an increase in CORS and extended service coverage, is the introduction of user fees to help recover the investment and operational costs of the network. The fees, which were introduced in July 2009, are applied after a three month free trial period to allow users to evaluate if the service is suitable to their needs. Fees are based on a six or twelve month subscription, with service fees in line with market expectations of $2,000 per year. Whilst the introduction of fees is a way of offsetting the investment costs, they are deemed necessary to assist with substantial operational costs, with an estimated breakeven point to be reached by the end of the 2013 network rollout (White et. al., 2009) LMPA has recruited eight new staff to its current team to undertake this work and deliver the desired outcomes. The team is split between technical and customer support and has expertise in project management, information technology, geodesy and marketing (White et. al., 2009). To ensure the highest achievable level of service availability, there is a high degree of redundancy within the network, not only in the design of stations with backup up power and communications, but also with the development of two independent data control centres with identical hardware and software, one in Sydney and one in Bathurst, to provide a failsafe back up Summary Whilst there are a number of similarities between the CORS networks being developed in Victoria and NSW, in particular the type and densification of the network infrastructure, there are a number of significant differences worth noting. SINCLAIR KNIGHT MERZ PAGE 25

31 The major difference is that the NSW Government has decided to take on all five roles identified by Higgins in the organisational model for Precise Positioning Services. i.e. network and system specification, construction and installation of the stations, network management and maintenance, processing and QA of the deliverables, marketing and delivery of services. In contrast, the Victorian network is based on a co-operative model, with some or all of the roles taken on by various organisations, and a greater stake in the development and ongoing management of the system by the community and those who benefit from it. The relevance of these case studies to Tasmania is that it highlights that various options exist for the development, management and delivery of CORS services. Section 6.5 explores further the models of management and the benefits or otherwise for Tasmania. SINCLAIR KNIGHT MERZ PAGE 26

32 6. CORS Network Assessment 6.1. Role of Government In assessing the feasibility of establishing a CORS network in Tasmania, it is necessary to consider the role of government. The work of this study has shown that the current development of CORS infrastructure across the state has been unplanned. Over time, this continuing trend, with no direct government involvement, may deliver the benefits of GNSS to a growing number of sectors. However, there is a clear role for a more coordinated approach to unify and develop a network of precise positioning reference stations, minimise duplication and optimise the outcomes from infrastructure investment (from both the public and private sectors). Such an infrastructure would greatly improve performance and efficiency for existing users, but more importantly, it would enable accelerated take up across major sectors of the economy. Figure 6-1 depicts the results of a 2008 analysis by the Allen Consulting Group prepared for the Victorian Department of Sustainability and Environment and the Cooperative Research Centre (CRC) for Spatial Information, describing the modelled adoption rates and levels for precision GNSS through time using a sigmoid function to characterise the uptake of new technology. Figure 6-1 Conceptual Uptake Adoption model for Precision GNSS Source: Allen Consulting (2008) The conceptual adoption model depicted in Figure 6-1 is based on several assumptions that were applied to all sectors: SINCLAIR KNIGHT MERZ PAGE 27

33 A standardised national network could be established and operational in major regional centres by the end of 2012 From 2012 onwards, there are two adoption scenario curves. The lower curve represents an organic growth adoption profile in the absence of a standardised and coordinated national network. The upper curve represents the adoption profile given the existence of a standardised national network. A standardised national network was estimated to result in an accelerated rate of adoption due to the technology becoming more widely available to users in regional areas and at lower cost, due to the economies of scale that could be achieved. Recent examples of CORS network infrastructure development without government intervention have resulted in fragmented and incomplete networks developed to meet the needs of specific pockets of activity and a large degree of over capitalisation in infrastructure. An example is provided by precision agriculture solutions companies who supply dedicated GPS base-rover equipment to meet the needs of individuals or small groups of farmers. In one case, fifty GPS base stations have been established on an ad hoc basis in Victoria to support precision farming over limited areas of operation using single base correction signals propagated by radio (Hale, 2007). Fewer than twice that number of bases would be sufficient to provide the entire state of Victoria with a dependable NRTK service Network Needs The establishment of an integrated CORS network requires a range of systems including physical infrastructure, network hardware and software and accessibility to other infrastructure such as power and telecommunications. The other important aspect of a CORS network is the location of stations and how best to distribute the sites over a relatively small island like Tasmania to provide the strongest and most economically viable real-time network. The following sections identify the various requirements and considerations in designing, installing and managing a network. One of the key success factors in the design of a CORS network is the placement of the stations to ensure maximum benefit is realised from the infrastructure. Currently, the maximum spacing between stations to achieve a network configuration that will generally provide the 2 cm horizontal accuracy demanded by most users is approximately 70 km. This is similar to the spacing criteria adopted in the existing GPSnet TM and CORSnet-NSW. For network redundancy and greater accuracy guarantees, it is considered desirable to reduce the station spacing in areas of SINCLAIR KNIGHT MERZ PAGE 28

34 greater demand - for instance urban areas and agricultural regions with cropping activities- (e.g. north-west Tasmania). As well as the restrictions on station spacing, other factors must be considered in determining station location in order to provide a reliable NTRK service. These include: Access to a stable power supply; Access to reliable high speed communications land or wireless based; A site that provides good sky visibility for the GNSS antenna; Access to land with the secure tenure; A stable platform for the antenna either a purpose built pillar on bedrock or a suitable masonary building; A building or purpose weather-proof enclosure to house the receiver and other electronic equipment; and A site that provides a level of security from public access. In reality, it will be impossible to locate CORS sites such that they meet all of the above requirements equally. As a starting point for identifying possible locations for new CORS, a desktop assessment was undertaken, which considered spacing in conjunction with the availability of suitable mains power, reliable communications and access to suitable(crown) land. In addition, consideration was given to the inclusion of existing infrastructure and its use where it was felt suitable in terms of its location, standard of equipment and monumentation. The following figure (6-2) represents a possible Tasmanian network. It indicates that a total of 25 CORS sites would be required to network the majority of the inhabited Tasmanian mainland, Flinders and King Islands. The possibility of upgrading existing private CORS and the use of the five Geoscience Australia/State Govt CORS suggests that the addition of between 18 and 21 new CORS stations could be required. However, for the purposes of the following costing, the scenario has been restricted to the installation of a possible 21 new stations and the use of existing suitable Auscope / GA sites at Liawanee, Spring Bay, Cambridge (Hob2) and Burnie (two existing stations). SINCLAIR KNIGHT MERZ PAGE 29

35 . 6-2 Possible Tasmanian CORS Network 6.3. Existing Enabling Infrastructure One of the major issues to consider when examining the establishment of a CORS network, in particular the development of real time services, is the ability to transfer data from each of the CORS sites in real time back to the central data centre and then compute and distribute RTK corrections to users within a minimum of 2 seconds of the initial satellite observation. SINCLAIR KNIGHT MERZ PAGE 30

36 Figure 6-3 Mobile coverage in Telstra s Next G Network 1 Because of the possible large distances between CORS/users and the data centre, possibly upwards of 100 km, fast, reliable communication infrastructure is required. Currently, the use of Asymmetric Digital Subscriber Line (ADSL), a data communications technology that enables faster data transmission over existing copper lines, optic fibre and wireless next G capable ground based infrastructure need to be used. Whilst these services are well suited for the transmission of RTK data, being able to transmit the data as far as is needed; they do not provide coverage in all areas in Tasmania. For example, Figure 6-3 shows the current coverage of Telstra s next G beyond the populated regions; there are many holes in their network. This could become a major issue for the network with many of the new CORS situated in regions that do not have mobile or existing copper lines capable of supporting ADSL. There are options of installing satellite communications to ensure data delivery from CORS sites in remote areas, but this can increase costs, and depending on the system, have reliability and latency problems. Another option is the current opportunity in Tasmania to use the rollout of new optic fibre and increased mobile coverage via the National Broadband Network (NBN) initiative. 1 Telstra (2010) SINCLAIR KNIGHT MERZ PAGE 31

37 Figure 6-4 Initial Tasmanian Broadband Rollout Network 2 This initiative will deliver fibre optic cable to individual premises, bypassing the existing aged copper network, transforming existing technology and providing speeds of up to 100 MBps to 90% of the state s population, and up to 12 MBps to the remaining 10%. The majority will receive broadband through fibre to the premise, while the rest will receive access via wireless broadband or satellite. The timing of this new infrastructure, with additions to the existing fibre network backbone near completed, and town rollouts planned for Scottsdale and Smithton in February and March 2010, would match well with a staged roll out of a CORS network, and provide sufficient enabling communication infrastructure to ensure a reliable framework for the transfer and delivery of CORS data and real times services. 2 Aurora (2010) SINCLAIR KNIGHT MERZ PAGE 32

38 6.4. Cost estimates The cost of developing a CORS network can be effectively aligned with three key activities: Tender process & site selection; CORS site construction & installation; & Network data centre. There are also costs associated with the operation of the network, including networking activities and site maintenance. The Geospatial Infrastructure Branch (GIB) within DPIPWE has made preliminary costs estimates of these activities. The costs have been based upon current market values for relevant hardware and software and an estimate of internal resourcing hours to support network establishment and ongoing management and delivery (S. Strong, per. comm.). The preliminary cost analysis undertaken for the development of the Tasmanian network indicates an average CORS site construction cost of $50,000 (for new sites), subject to access to the required services. It is expected that a small number of existing sites would require relatively minor upgrades, whilst new sites will require full construction, including in some cases site access arrangements where the proposed site is not currently owned. The total proposed cost of the tender preparation and site construction is estimated at $1.2 m for 26 sites (of which 5 are existing, 21 new). The Network Data Centre is a critical component in the pathway between individual CORS sites and the end user. The data centre consists of a central server operating network management and positioning service delivery software utilising fast reliable communications. The delivery of network RTK will either require construction of a new network data centre or engagement of an outside service provider. For instance, Victoria GPSnet TM has the capacity to scale their existing operations to manage additional interstate CORS (M Hale, pers. comm). DPIPWE estimated the cost of establishment of a Tasmanian network data centre at approximately $600,000. There will also be additional on-going costs associated with the operation of the network, including networking activities, site maintenance and depreciation. Operating costs for the CORS network were estimated as being in the order of $560,000 per annum for 26 sites (including support, equipment depreciation, communication, electricity etc.). Given the economies of scale in SINCLAIR KNIGHT MERZ PAGE 33

39 managing the network, operating costs are unlikely to decrease significantly if fewer sites are constructed. The choice between investing in the development of a data centre and the full management and delivery of services from a CORS network, or outsourcing those roles and responsibilities to other organisations, (private or public sector) may depend on which is the lower cost option. Therefore, the cost estimates for the data centre and ongoing operation are considered an upper bound estimate. Assuming construction of the CORS network would occur in Years 1 & 2, and that 20% of the capital cost would be required every 10 years for system upgrades, and a 2% cost escalation per annum commencing 2011, the cost profile of developing and operating a CORS network in Tasmania is predicted to be as shown in Figure 6-5. $2,500,000 $2,000,000 $1,500,000 Cost recovery models (inhouse network centre) Cost recovery model (outsourced network centre) No cost recovery $1,000,000 $500,000 $ Cost Profile for cost recovery and network centre options 6.5. Management Options As noted in Section 5, CORS networks established in other Australian jurisdictions operate under different management models with varying levels of government intervention and management. SINCLAIR KNIGHT MERZ PAGE 34

40 Options exist for involvement of government and the private sector at various levels of the CORS network value chain. Figure 6-6 specifies the elements of establishing a precision network and the roles under each element. Government may choose to be involved, or outsource, at any point moving left to right, depending on their objective. Government may also choose not to intervene and leave the whole process to the private sector. Lack of government intervention in the current market arrangement has led to a lack of coordinated response and duplication of some infrastructure around major cities, whilst regional areas are without service. In choosing to intervene in the market to ensure consistent and efficient investment in a CORS network, government must chose the level to which it intervenes and understand the implications of this decision. If the key objective is to have an efficient and effective state-wide CORS network, then intervention will be required, at a minimum, in the specification of the system (outlined in green below). Specify Stations Network Process Deliver Specify System Own Stations Network the Data Process Network Deliver Service Target Density, Coverage, Accuracy, Reliability and Availability Site Quality Equipment Quality Geodetic Reference Frame Data Services Produced Data Access Site Selection Site Construction Equipment Purchasing Station Data Comms Site Maintenance Equipment Replacement Cycle Data Comms from Network Stations Control Centre Quality Control of raw data Data Archive Governance Copy of Network Data Processing Production of Data Streams Distribution of Data Streams Data Wholesaling Retailer Support Retail Sale of Data Products Marketing Rover Equipment support End User Support Liaison with User Comms Providers Figure 6-6 Organisational Roles in Precision Networks (Higgins, 2008) SINCLAIR KNIGHT MERZ PAGE 35

41 It is also reasonable to expect that if the government wishes to develop a system with 90%+ statewide coverage, it needs to incentivise the private sector to provide this level of coverage in a manner which is not cost prohibitive to users 1. It is expected that in some regional areas the system may take many years to build up a sustainable market 2, and as such, is unlikely to recover capital costs. This, and the natural monopoly nature of CORS infrastructure establishment (high capital cost, relatively low marginal cost), support the concept of government intervention in the capital establishment, with the operation of the capital undertaken by the private sector. In Figure 6-6, this model would be represented by the red line, with the network, process and delivery roles being provided through licensing or other arrangement with private sector providers. This model is as has been implemented in Victoria, whereas the model for NSW is a whole of government approach taking on all roles shown by the area in blue Pricing Options Pricing access to the CORS network will have a significant impact on the uptake by industry and the on-going financing need by government. Significant literature exists on access pricing to networks that present natural monopoly characteristics, or require significant co-ordination and interconnection, such as a CORS network. The issue of access pricing has been addressed in a range of assessments in regards to telecommunications infrastructure, which, similarly to CORS infrastructure, has high sunk network capital costs and relatively low marginal operating costs. In keeping with this literature, an assessment has been undertaken of the broad pricing options for a Tasmanian CORS network. Broadly, four pricing options exist for access to the CORS network. These are: No Cost: Under this option there would be no cost charged to users to access the CORS network, and hence no revenue collected. This approach will require all service provision costs, including the capital works, operating costs, depreciation and on-going maintenance, to be met without cost recovery. Marginal Cost Approach: Under a marginal cost approach, the access fee charged to each access seeker would be equal to the cost to provide access to that access seeker. A marginal cost approach does not allow for depreciation or capital replacement costs, so whilst delivering a lower access cost to users, would require on-going subsidisation. It is important to consider that the marginal cost of access for significant infrastructure and electronic data is generally very low, and hence this model would likely result in a very low access fee. Without on-going investment, this model will lead to service degradation over time (as no funds would be available for capital replacement) and would not be sustainable. 1 See Section 6.6 (Pricing options) 2 For more details see Section 7 Market Assessment. SINCLAIR KNIGHT MERZ PAGE 36

42 Average Cost Approach: An average cost approach will set an access fee equal to the average cost of service provision and will allow for depreciation costs and capital replacement to be incorporated into the fee arrangement. This approach will have a higher cost than the marginal cost, but lower than a cost plus margin approach. This model would, if correctly set and applied, be sustainable without on-going funding support. Cost plus margin: This model is representative of a commercial approach to pricing and allows for all costs (including full capital replacement) to be recovered plus a margin (or return on investment). This pricing option will be more costly to access seekers, would present a positive net revenue return, and would be sustainable. It is important to note that all options other than no cost will require a process to sell access and collect revenues. A cost recovery model will require increased staffing to meet the client management and support roles that a fee for service model requires. A lower level of client management and support roles would be needed for the no cost model. In Victoria, the revenues are collected and managed by the Value Added Resellers (VAR s) with a portion of the revenues returned to Government by the VAR s to fund the operating costs. The VAR model contractually requires the VAR s to meet certain service and quality objectives such as 99.8% uptime. Currently, the cost recovery models utilised in NSW and Victoria charge access at $2,000 - $2,400 per annum. It is estimated that with the current level of uptake, these access prices meet operating costs, but not all capital and depreciation costs. If Tasmania was to follow a similar pricing structure, it is likely that, until take up levels by users hit a critical mass, this pricing would fund basic operating costs, but not the full staffing requirement and depreciation costs. The following table outlines the relevant considerations of each pricing option. Element No Cost Marginal Cost Average Cost Cost plus margin Relative price to users Lowest Low Medium Highest Marginal Costs recovered No Yes Yes Yes Depreciation costs No No Yes Yes recovered On-going subsidy required Yes Yes No No SINCLAIR KNIGHT MERZ PAGE 37

43 Pricing is critical to the success of the CORS network. Given that the benefits likely to flow from development of the network are both private and public, there is a need to introduce a cost which reflects these benefits and supports uptake by industry. Currently, the only effective substitute available to users (in particular agricultural users) is a base station approach which costs in the order of $6,000 to $10,000 per unit. There would also be additional costs for equipment (farm machinery) upgrade at this time, if equipment has not been bought GNSS ready. The life expectancy of this equipment is likely to be in the order of five years, i.e. a depreciated cost of approximately $2000 per year. As such, any access pricing significantly above this figure would likely result in poor uptake in CORS, and lead to increased use of private/ independent base stations. Given that price is a factor of demand, establishing an effective pricing model is critical to the market feasibility of the Tasmanian CORS project. A high price will attract fewer users to the system, resulting in reduced public benefits to the state economy in terms of industry efficiency and efficient resource use. Conversely, a price that is too low will require on-going financial support to be sustainable, effectively subsidising the private benefit outcomes. However, consideration needs to be made, most likely by the Tasmanian Government, as to the overall benefit to the state economy from the introduction of an effective CORS network, and whether the overall costs of a low or no cost model are off-set by the overall improvement in productivity in the state. Whilst an average cost model will result in an efficient price that over the long term will not unduly transfer funds to or from the sectors of the economy that utilise CORS, if the overall benefit to the economy is likely to be significant from a higher uptake, then a no cost model may be appropriate, at least in the short-medium term, Break-Even Analysis Given the expected cost to introduce the system and an access fee of $2,000 per user (conservative), the system would need to attract an average of 436 users to break even. This assumes capital costs, including the site works and network centre, are amortised over 10 years. More detail on the potential market size and make up of users is noted in Section 7. SINCLAIR KNIGHT MERZ PAGE 38

44 7. Market Assessment Tasmania is the southernmost island state of Australia. It encompasses a total area of 68,401 square kilometres and has a population of a little over 500,000 3 people. Its Gross State Product (GSP) for 2007 was $20.9bn 4, with approximately 205,000 5 people employed. Agriculture, mining, construction and surveying are large contributors to Tasmania s GSP and have the potential to greatly benefit from the installation of a CORS network Summary table The following table summarises the likely main users of a CORS network in Tasmania, broad benefits, and required equipment to achieve the benefits outlined. Industry Benefits of utilising CORS Industry factors (Tasmania) Market penetration/ CORS users by 2020 Agriculture Improved agricultural efficiency Reduced Costs: Labour, water, pesticide, fertiliser Increased yield (productivity increase) Environmental management: water efficiency, reduced pesticide run-off, reduced quantity of input goods required including fertiliser, pesticide & water Mining Improved exploration data collection Increased Planning certainty Environmental management Selective mining 1,659,163 Hectares (total area of holding) 4,783 establishments $963m gross value of agricultural commodity production 4.6% contribution to Gross State Product 580 active mining leases $2,658m gross value of production 53% of mercantile exports 12.7% contribution to Gross State Product 80% market penetration of cropping establishments by 2020, some 1,400 users. Accurate selective mining, up to 80% market penetration by 2020, up to 50 users (including mine contractors) 3 ABS Australian National Accounts: State Accounts ABS 4 ABS, Sept 2009: : Tasmanian State and Regional Indicators 5 ABS 2006 census SINCLAIR KNIGHT MERZ PAGE 39

45 Industry Benefits of utilising CORS Industry factors (Tasmania) Market penetration/ CORS users by 2020 Survey Industry Reduced field work costs from improved field work efficiency Construction Planning certainty Environmental management Reduced surveying site works Precision earth works Approximately 50 surveying/spatial practices 112 registered surveyors Up to 200 (non registered) spatial/ survey users Employs 5,300 people directly $717.6m gross value of production (residential) $406.3m gross value of production (nonresidential) $837.2m gross value of production (engineering construction work) 9.4% contribution to Gross State Product 90% market penetration by 2020, up to 80 licenses Land Surveying (as above) 60% market penetration for GNSS earth moving by 2020, up to 200 users Agriculture Agriculture employs 11,411 Tasmanians, approximately 5.6% of Tasmania s workforce. 6 Approximately 55% of Tasmania s total agricultural land is used for non-livestock agriculture. Crop agriculture contributes approximately 4.6% of Tasmania s GSP. 7 There are some 4,783 agricultural establishments in Tasmania with an average value of production of some $220,000 per establishment. 6 ABS Includes cereals, vegetables, orchard trees, fruit (excluding grapes) and broadacre crops. 2006/07 ABS SINCLAIR KNIGHT MERZ PAGE 40

46 450,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000,000 50,000,000 0 Crops total value ($) Nurseries, cut flowers and cultivated turf total value ($) Tasmania Gross Value of Agricultural Production Vegetables total value ($) Fruit total value ($) Livestock products total value ($) Source: ABS- Value of Agricultural Production (VACP)- Small Area Data Distribution of land allocated to non-livestock agriculture varies widely between LGAs. It is broken down by the following graph: Land Allocated to Non Livestock Agriculture (ha) Break O'Day Brighton Central Coast Central Highlands Circular head City of Burnie City of Clarence City of Devonport City of Genorchy City of Hobart City of Launceston Derwent Valley Dorset Flinders George Town Glamorgan Spring Bay Huon Valley Kentish King Island Kingborough Latrobe Meander Valley Northern Midlands Sorell Southern Midlands Tasman Waratah Wynyard West Coast West Tamar Source: ABS- Value of Agricultural Production (VACP)- Small Area Data SINCLAIR KNIGHT MERZ PAGE 41

47 Non-livestock agriculture is concentrated in the Northern Midlands (33.9% of the total non-crop agriculture), Southern Midlands (8.6%), Meander Valley (8.6%) and Latrobe (7.8%). This is consistent with the value of agricultural production in these areas. The following table, sourced from the Australian Bureau of Statistics (ABS) - Value of Agricultural Production (VACP)- Small Area Data , highlights the value of agricultural production within Tasmania represented by four major regions. The Mersey-Lyell region has the highest value of agricultural production, with the gross value dominated by crop production (some $179 m). The region is also significant for vegetable production ($122 m). 200,000, ,000, ,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Crops total value ($) Livestock products total value ($) Vegetables total value ($) Fruit total value ($) Nurseries, cut flowers and cultivated turf total value ($) Source: ABS- Value of Agricultural Production (VACP)- Small Area Data The uptake of GNSS real time positioning technology in the agriculture sector interstate has been largely concentrated in the crops and vegetable sub-sectors, though there has also been recent uptake in fruit and grain industries. From the table above, Tasmania is likely to see the highest uptake in the Mersey-Lyell and Northern regions, based on the high levels of production. SINCLAIR KNIGHT MERZ PAGE 42