Australia Transportation Infrastructure Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Australia Transportation Infrastructure Construction Market is segmented By Type (Roadways, Railways, Marine Transportation, and Airways). For each segment, the market sizing and forecasts have been done on the basis of value (USD billion).

Market Snapshot

Market Summary
Study Period: 2018-2027
Base Year: 2021
CAGR: >4 %

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Market Overview

The Australian Transportation Infrastructure Construction Market is expected to witness a CAGR of more than 4% during the forecast period (2022 -2027). The Australian economy has been hit hard by the country's response to the global pandemic, which has resulted in lockdowns and regulations. Due to their low cost and great efficiency, Australia has become more reliant on importing building materials and equipment from elsewhere, mainly China, in the previous 10 years. Manufacturing output and export volume both fell sharply in February and March as enterprises in China were forced to close to avoid the spread of COVID-19. Due to restrictions on people's travel and, in some cases, compulsory business closures to prevent the spread of the disease, suppliers from other regions of the world delayed or ceased industrial output.

In 2021-2022, the Government of Australia announced that the budget included AUD 15.2 billion (USD 11.85 billion) for infrastructure projects over the next 10 years supporting over 30,000 jobs. This was expected to help the implementation of road, rail, and community infrastructure projects across Australia. The investment comprises AUD 13.2 billion for major infrastructure projects and AUD 2 billion for local projects included under the Road Safety Programme and the Local Roads and Community Infrastructure Programme. Among important rail projects, the Metronet program in Western Australia and Canberra's Light Rail Stage 2A in the Australian Capital Territory will benefit from the government's commitment.

The financing is in addition to the government's significant existing investment in projects that will define the success of local communities for years to come, including the Western Sydney International (Nancy-Bird Walton) Airport, which is due to open in 2026, Sydney Metro Western Sydney Airport and the Melbourne Airport Rail Link. More than 220 major Australian Government funded projects are currently under construction. With this budget, the Australian Government has provided AUD 170 billion in funding for the infrastructure since 2013. This funding will support delivering a 10-year AUD 110 billion (USD 85.74 billion) infrastructure investment pipeline and investing in the future.

Scope of the Report

The transportation infrastructure construction market includes a wide range of construction activities involving reforming the existing constructions, building new infrastructures, and extending or demolishing projects. A complete assessment of the Australian Transportation Infrastructure Construction Market includes an assessment of the economy market overview, market size estimation for key segments, and emerging trends in the market segments in the report. The report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the Australian Transportation Infrastructure Construction Market is depicted through the profiles of active key players. The report also covers the impact of COVID-19 on the market and the future projections.

The Australian Transportation Infrastructure Construction Market is segmented by Type (Roadways, Railways, Marine Transportation, and Airways). For each segment, the market sizing and forecasts have been done on the basis of value (USD billion).

By Type
Marine Transportation

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Key Market Trends

Investments in Land Transportation Infrastructure Driving The Market

The Australian Government is investing AUD 110 billion over 10 years from 2021-22 for inland transport infrastructure across Australia through its rolling infrastructure pipeline, most of which is under the Infrastructure Investment Program. This program is part of the Government’s broader strategy to bust congestion, better connect regions, meet national freight challenges, get Australians home sooner and safer, and build a stronger and more resilient Australia. The Australian Government’s commitment to the North-South Corridor involves the upgrade of the corridor between Gawler in the north and Old Noarlunga in the south. The North-South Corridor facilitates freight movements to and from Adelaide Airport, the Port of Adelaide, and surrounding industrial areas. Key projects as part of the North-South Corridor include the Northern Connector, Torrens Road to River Torrens, Darlington Upgrade, Regency Road to Pym Street, as well as North-South Corridor future priorities, which are currently in planning. The Australian Government has committed up to AUD 4.5 billion to critical projects on the North-South Corridor.

M80 Ring Road Upgrade, the project will upgrade and widen the remaining sections of the M80 Metropolitan Ring Road. These include the Sunshine Avenue to Calder Freeway, Sydney Road to Edgars Road sections, and the Princes Freeway to Western Highway sections. The estimated cost of the project is AUD 1 billion. The Australian and Victorian Governments are both contributing AUD 500 million.

Inland Rail is the largest transport infrastructure project in the Australian Government’s AUD 110 billion pipeline and a critical action under the National Freight and Supply Chain Strategy. Australia’s population is growing, and our transport network will need to support the movement of 35% more freight by 2040. Inland Rail is a 1,700km fast and high-capacity freight rail line connecting two of Australia’s fastest-growing cities in, Melbourne to Brisbane. The Australian Government has committed up to AUD 14.5 billion in equity to the Australian Rail Track Corporation (ARTC) to enable the delivery of Inland Rail.


Airports Infrastructure Driving the Market

The Australian Government has released the guidelines for Round 3 of the Regional Airports Program, with applications open from 22 March to 17 May 2022. On 28 July 2021, the Deputy Prime Minister announced AUD 29.6 million in Australian Government funding for 89 projects under round two of the Regional Airports Program. On 13 June 2020, the Deputy Prime Minister announced AUD 41.2 million in Australian Government funding for 61 projects across regional Australia.

The Department of Infrastructure and Regional Development, through Western Sydney Airport Ltd, is undertaking the construction of an airport in New South Wales, Australia. The main aim of the project is to accommodate more international flights and flexible runways for the planes. Sydney airport is already facing capacity issues, and the requirement of a second airport is essential in the region to handle the traffic. The project involves the construction of an airport on 1,780ha of land and is planned to be implemented in stages. The construction work is divided into two development phases, enabling activities and the main airport works. The first stage includes the construction of a 3.7km single east-west runway with a width of 60m, a single full-length parallel taxiway, a cargo terminal, apron, and a 65,000m2international and domestic terminal. The new airport will have the capacity to handle up to 10 million passengers a year when it opens in 2026, unlocking Western Sydney to the nation and the world.

The Western Sydney Airport project also includes the construction of a 40km access road, a surface water drainage facility, airside security fencing and landscaping, ticket and service counters, and aerobridges. It will involve the construction of a baggage handling system, arrival and departure lounge, rail infrastructure, offices, and the installation of escalators.


Competitive Landscape

Due to the existence of major local and international companies, the Australian Transportation Infrastructure Construction Market is fragmented. CPB Contractors, Lendlease, Hutchinson Builders, John Holland, and Fulton Hogan are among the major players in the market. Demand for sustainability and technological advancements has increased in the transportation infrastructure sector, and corporations are investing to stay competitive.

Recent Developments

In January 2022, John Holland (a construction, tunneling, rail, building, and services provider) and CPB Contractors (An Australasian construction company) reached an agreement with the NSW Government (the Australian state democratic administrative authority) to design and construct part of the Western Harbour Tunnel (WHT) project in parallel with the existing Rozelle Interchange works. The additional scope includes 1.7 kilometers of mainline road tunnels for the Western Harbour Tunnel running from the Rozelle Interchange towards Birchgrove Oval, in addition to tunnels for ventilation, ramps, and other services.

March 2022: CIMIC Group company CPB Contractors, as part of a joint venture, has been selected to deliver the surface civil and alignment works for the Sydney Metro – Western Sydney Airport rail link between Orchard Hills and the new Western Sydney Airport Station. Funded by the Australian and New South Wales governments, the contract will generate revenue of approximately AUD 395 million for CPB Contractors. The innovative joint venture is made up of CPB Contractors and United Infrastructure, a consortium of Western Sydney-based companies, including Burton Contractors, JK Williams, and Mulgoa Quarries.

Table of Contents

  1. 1. Introduction

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. Research Methodology

  3. 3. Executive Summary

  4. 4. Market Insights

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Government Regulations and Initiatives

    4. 4.4 Supply Chain/Value Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

    6. 4.6 Technology Snapshot and Digital Trends

    7. 4.7 Modernization of the Transportation Infrastructure Sector

    8. 4.8 Major Infrastructure Development Projects

    9. 4.9 Impact of COVID-19 on the Market

  5. 5. Market Segmentation

    1. 5.1 By Type

      1. 5.1.1 Roadways

      2. 5.1.2 Railways

      3. 5.1.3 Marine Transportation

      4. 5.1.4 Airways

  6. 6. Competitive Landscape

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 CPB Contractors

      2. 6.2.2 Lendlease

      3. 6.2.3 Hutchinson Builders

      4. 6.2.4 John Holland

      5. 6.2.5 Fulton Hogan

      6. 6.2.6 ADCO Constructions

      7. 6.2.7 BGC (Australia)

      8. 6.2.8 Richard Crookes Constructions

      9. 6.2.9 Built

      10. 6.2.10 Watpac Australia

      11. 6.2.11 Salini Impregilo NRW Joint Venture

      12. 6.2.12 Scentre Group (Westfield Group)

      13. 6.2.13 Parkview Group Australia

      14. 6.2.14 Mirvac Group

      15. 6.2.15 BMD Constructions

      16. 6.2.16 Icon Co

      17. 6.2.17 Downer EDI Works*

    3. *List Not Exhaustive
  7. 7. Market Opportunities and Future Trends

  8. 8. Appendix

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Frequently Asked Questions

The Australia Transportation Infrastructure Construction Market market is studied from 2018 - 2027.

The Australia Transportation Infrastructure Construction Market is growing at a CAGR of >4% over the next 5 years.

CPB Contractors, Lendlease, Hutchinson Builders, John Holland, Fulton Hogan are the major companies operating in Australia Transportation Infrastructure Construction Market.

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