Australia is at the cusp of a transformative era in infrastructure development, driven by significant policy shifts towards renewable energy and ambitious government goals for net zero emissions by 2050.
Principal of Kilgariff Advisory (former Roads Australia CEO and former Managing Director of the Australian Logistics Council) Michael Kilgariff and CJC Management Group Managing Director Colin Calder have delved into the intricacies of the infrastructure roadmap for Australia and examined the state-by-state implications of the evolving policies.
In May, 2023, Minister Catherine King initiated a 90-day review of the $120 billion 10-year infrastructure pipeline, revealing a $33 billion blowout in funding for various projects.
Also announced was an Independent Review of the National Partnership Agreement on Land Transport Infrastructure Projects (expiring on June 30, 2024) a critical mechanism through which the Commonwealth invests in land transport infrastructure in tandem with states and territories.
In mid-November 2023, the federal government released its response to the Inquiries, also announcing a future focus for Australian infrastructure investments based on the themes of productivity, sustainability, and liveability.
Calder notes that this is a critical time for the infrastructure sector, with challenges in completing existing projects while transitioning from transport infrastructure to renewables in a constrained fiscal environment.
However, he notes these challenges as opportunities for the sector to innovate, incorporating advanced technologies and sustainable methods, stating: “As leaders in the sector, we see this as an opportunity for developing a balanced, forward-thinking strategy that supports Australia’s long-term growth.
“There is a real need for alignment between state and federal objectives, focusing on productivity, liveability, and sustainability.”
Federal Funding Realignment and State Impacts
As part of its strategic approach to national infrastructure development, the federal government has collaborated with the states and territories.
This collaboration aims to streamline the infrastructure pipeline, focusing on projects already underway.
These projects are selected for their potential to unlock significant economic, social, and environmental objectives.
Reforming Infrastructure Australia
A pivotal point in the infrastructure narrative is the reconstitution of Infrastructure Australia (IA), as proposed in the 2022 independent review.
The legislation aims to redefine IA’s role, broaden its functions, and implement a new governance structure.
The three commissioners overseeing IA’s functions will play a crucial role in advising on nationally significant infrastructure matters, fostering transparency and strategic frameworks.
Legislation to confirm the new governance structure passed through the Parliament on 6 December 2023.
Decarbonisation and Net Zero Initiatives
In line with global commitments, the Australian government is dedicated to reducing greenhouse gas emissions to a 43 per cent reduction below 2005 levels by 2030 and net-zero emissions by 2050.
In 2020 the transport sector contributed around 18 per cent of Australia’s emissions, predominantly related to road-based transport, and a staggering 70 per cent of Australia’s greenhouse gas emissions are tied to infrastructure.
Michael Kilgariff emphasises this point, as he stated: “The key to Australia’s success in achieving its net-zero targets lies in collaboration between government and industry, and the integration of sustainable practices across all infrastructure projects.
“With such a significant portion of our nation’s emissions linked to infrastructure, particularly in the transport sector, our approach needs to be innovative and all-encompassing.”
In response, the federal government is developing a Transport and Infrastructure Net Zero Roadmap and Action Plan, reflecting the commitment to achieve net-zero emissions by 2050.
Queensland’s Electoral Impact
The upcoming Queensland election in October 2024 is poised to bring potential changes. Current projections suggest a highly competitive race, with the real possibility of a change of government.
Calder emphasises the election’s potential impact, as he stated: “The Queensland election could be a watershed moment for infrastructure policies, particularly with the Brisbane 2032 Olympics on the horizon.”
The Brisbane 2032 Olympic Games offer Queensland a unique opportunity to demonstrate its infrastructural capabilities while focusing on sustainable urban development.
Public opinion in Queensland is divided, balancing excitement over the global event with concerns about cost of living and disruption.
Learning from past Olympic host cities, the emphasis is on long-term planning and community-focused legacy projects.
Looking ahead, these infrastructure projects in Queensland are part of a broader vision for the state’s future.
Beyond the immediate excitement of the Olympics, there is a clear aim to use these developments to support sustained population growth and economic diversification.
This strategy is essential to ensure that Queensland remains vibrant and competitive in the decades to come.
New South Wales’ Transport Focus
In light of the federal government’s realignment of funding to promote state-led infrastructure development and fiscal responsibility, New South Wales’ $116.5 billion investment by 2026-27 in key projects like Sydney Metro West, demonstrates the state’s proactive and visionary approach to meeting these new federal guidelines while driving local economic growth and sustainability.
A notable aspect of this budget is its potential to stimulate the local economy.
The infrastructure spending is expected to create a substantial number of jobs, boosting employment and contributing to economic growth.
This, in turn, could attract more businesses and investments to the region, further bolstering the state’s economic landscape.
These infrastructure projects are designed to address current needs and anticipate future challenges with the aim to enhance the quality of life and stimulate economic growth, marking a significant shift in investment from metropolitan areas to regional ones.
Victoria’s Visionary Projects
In Victoria, the Suburban Rail Loop stands out as a testament to the state’s forward-looking urban planning.
This project, designed to meet the needs of Melbourne over the next five decades, reflects a strategic approach to sustainable urban development.
Victoria remains committed to this transformative project, underscoring its dedication to future-proofing its urban infrastructure.
The Suburban Rail Loop will be a 90-kilometre rail line, intricately connecting every major train service from the Frankston Line to the Werribee Line via Melbourne Airport.
This vast network will vastly improve access to jobs, retail, education, and health services, fostering better connectivity among Victorians.
Calder stated that “from an environmental standpoint, the Suburban Rail Loop represents a significant stride towards a more sustainable future.
“By encouraging the use of public transport over private vehicles, we’re looking at a potential reduction in carbon emissions.
“What’s more, the project will incorporate innovative technologies in its construction and operation, such as advanced signalling systems and energy-efficient trains, reflecting Victoria’s dedication to technological progress.
“This initiative goes beyond mere transportation; it’s a catalyst for sustainable and inclusive growth, perfectly aligning with Victoria’s long-term vision for urban development and catering to the needs of the state’s expanding population.”
Western Australia’s Robust Development
In Western Australia, the booming mining sector has provided a financial boon, allowing for an increase in infrastructure funding.
This positions the state to take a leading role in sustainable and innovative infrastructure projects, aligning with national objectives while capitalising on its unique economic strengths.
Shift in Focus and Location
Australia is experiencing a significant shift in its infrastructure focus and geographical priorities.
While the past two decades emphasised major transport infrastructure in capital cities, the future points towards energy transformation with a focus on renewables.
Energy construction demand has increased four-fold over the last 18 months, although the transport infrastructure spend will remain static with a 50:50 split on rail and road.
Social infrastructure, including hospitals, water, and waste recycling, are gaining prominence.
Inland Rail, renewables, and transmission are emerging as key components of regional infrastructure development.
The government’s commitment to a diversified and sustainable infrastructure portfolio is driving these regional investments.
National and State Synergy
Michael highlights, “In Australia, there’s a concerted effort to balance existing projects with new, innovative ones, particularly with our commitment to sustainability and net-zero targets.”
As the nation evolves its infrastructure, the synergy between federal and state efforts is key. Colin adds, “This collaboration, rooted in sustainability, sets Australia on a path to become a leader in resilient and innovative infrastructure development.”
These insights underline Australia’s unified approach towards a sustainable infrastructure future.
