Is the infrastructure boom already over or just getting started?
Data produced by Infrastructure Partnerships Australia is warning of a slump in infrastructure approvals during the pandemic. The report suggests that only $6.7Bn in projects have been approved in the first 8 months of 2020 compared with $27.1Bn in 2019. This is despite governments (both State and Federal) talking up major infrastructure as the “way out” of the Covid-19 recession. The issue with major infrastructure is, and has always been, the time required for planning – any major freeway/rail/airport project takes years of planning and environmental approvals before the first sod is turned. This fall in approvals should not be confused with the existing pipeline of projects that are already committed and underway. The short-medium term project pipeline (on the East Coast) remains strong, Melbourne has its Metro, Westgate tunnel and NorthEast Link, Sydney has its own Metro, Connex and second Airport whilst QLD is working through the Bruce upgrade and Cross-River.
All eyes now turn to the Federal budget due on October 6th with whispers of a major project heavy focus – especially water storage and security.
Find out more at Infrastructure Partnerships Australia here.