Business Plan, Masterplan and Business Case for Historic Railway

Business Plan, Masterplan and Business Case for Historic Railway

  Puffing Billy (image courtesy Emerald Tourist Railway Board)

Puffing Billy is an iconic tourism asset for the Victorian community, celebrating the history and operations of the narrow-gauge steam railway nestled within the Dandenong Ranges. Emerald Tourism Railway Board, the operators of Puffing Billy, commissioned SGS to review Puffing Billy's market environment and operations. SGS's analysis revealed that significant efforts were required to focus the Railway on the total visitor experience, to support the traditional business, and to maintain and replenish infrastructure.

The business plan scoped out three possible investment scenarios in terms of the composition and level of support from government and benefactors. After working with the Railway to scope out these scenarios, SGS tested them in terms of their financial and broader socio-economic implications.

The preferred scenario provided the Railway with a framework for moving to a sustainable financial position over the long term. It also identified ways of broadening Puffing Billy's market positioning, and showed how regional tourism yields could be lifted through increasing quality accommodation in the region, and collectively improving the link between Puffing Billy patrons and other regional attractions. SGS's work also established that from a broader community perspective, the preferred scenario would not only generate significant economic activity in the local economy, but also represent a good return on community capital, with a benefit cost ratio of 5 to 1. The Business Plan 2009-2014 thus set key development directions and initiatives for securing PBR's future.

Emerald Tourist Railway Board later commissioned SGS to prepare a masterplan for the Railway, highlighting how the business development initiatives developed earlier in the Business Plan would be expressed in a physical sense along the rail corridor. The Railway Corridor Masterplan communicated the development vision for the Railway to external stakeholders and investors, noting that funding for the large scale initiatives presented robust investment opportunities for public and private sector entities.

Following the business planning process, it was clear that significant efforts were required to ensure the Railway's long term survival. SGS prepared a full business case for a multi-million dollar investment from State Government and the private sector into Puffing Billy. The Business Case met both the specifications of Victorian State Government's Gateway process and the Victorian Treasury's guidelines.