Australian infrastructure metric shows transport-led construction recovery ahead: latest figures

Source: Infrastructure Partnerships Australia - www.infrastructure.org.au

24 March 2016

The December quarter Australian Infrastructure Metric forecasts a construction recovery ahead, led by major transport infrastructure projects in NSW and Victoria, according to data produced by Infrastructure Partnerships Australia (IPA) and BIS Shrapnel.

“This is the biggest lift we’ve seen in infrastructure investment since the end of the mining boom,” said IPA Chief Executive Brendan Lyon.

“These figures show hard dollars are now hitting real road, bridge and rail projects, largely in NSW and Victoria with transport forecast to grow by $3.2 billion next year.

“These figures are good, but would be much better if the resources states were pulling their own weight and building badly needed infrastructure.

“NSW is the standout jurisdiction, with major contracts for motorways driving the upswing in national figures, paid for by asset recycling of that state’s electricity sector.

“We expect to see Victoria feature prominently in the next quarter and in coming years as contracts for the level crossing removals and later the massive Melbourne Metro are signed and the projects get underway.

“These states have made the tough decision to recycle public assets, like their electricity networks and ports, to fund vital infrastructure.

“Meanwhile, Queensland and Western Australia are sitting on the sidelines with wounded budgets and no clear plan to fix the budget and infrastructure problem.

“While public infrastructure is strengthening there’s more to do and a big gap remains in economic activity, because of the continued retreat in mining investment.

“Queensland and Western Australia are the most exposed to the transition and have to do more to find money for projects, or they will lose skills to other states and miss the opportunity to grow their economies.

“Australia is facing difficult fiscal and economic factors, which is made harder by Queensland and WA dragging down the national economy by refusing to pull their weight.

“It’s in the national interest that the resources states get back in shape on infrastructure.”

 

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