Growth across the country’s transport sector will be driven by the road and rail sectors according to a new report by Fitch Solutions.
The credit market data specialist said the Federal Government’s 10-year Infrastructure Investment Plan (IIP) supported the forecast growth of the roads and bridges sector which it said would grow at an annual average of 4.5 per cent between 2019 and 2028.
It would be supported by the road and rail sub-sectors.
Federal and state funding would stimulate heavy private sector involvement per the report.
“Australia’s transport sector will be the primary driver of growth of the overall infrastructure sector over the next decade,” the report said.
“We forecast the transport sector to grow at an annual average of 4.5 per cent from 2019 to 2028, mainly supported by the road and rail sub-sectors.”
Activity at airports and ports is expected to be subdued, with any related expansion projects to have been generated from the existing infrastructure of each.
The road and rail sectors will be key drivers behind the growth of the transport sector through land transport infrastructure introduced last year via the IIP and Local and State Government Road Safety Packages such as Roads to Recovery, the $550 million Black Spot initiative, the $275 million Bridges Renewal Program and the $4 billion Urban Congestion Fund to free up critical corridors in major cities.
This includes Roads of Strategic Importance in which key freight routes that connect local businesses to national and international markets are identified by the Government.
Upgrades pledged of $4.5 billion over the next decade on corridors like the $510 million Toowoomba to Seymour corridor and $400 million Tasmanian Road Package are also key factors anticipated to drive this growth.
The WestConnex Motorway Project, of which the latest stage of M4 tunnels has recently opened to the public, and the North-East Link Project proposed by the Victorian Government for Melbourne are further examples of infrastructure projects increasingly being co-funded through public-private partnerships.
Growth of the rail sector is forecast as the second largest component of Australia’s transport infrastructure facilitated by funds allocated through the IIP and initiatives such as the Faster Rail (Fast Rail) plan, the expansion metro systems in major Australian cities, as well as other projects such as the $13 billion Melbourne Airport Rail Link and the $9.5 billion Inland Freight Rail Project.
Article courtesy of Prime Move Magazine