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$20 billion boost to road and rail spending in NSW & VIC


Posted by PlantMiner

In the next five years, infrastructure spend in NSW and Victoria will increase by a cumulative $20 billion. Highlighting the next stage of Australia's rebalancing act, road and rail spending will boost by $20 billion to $80.7 billion. 

HSBC chief economist for Australia and New Zealand reported on Wednesday that to help offset the impact of the on-going expected decline in mining investment, a much needed pick-up is required from non-mining business investment.

A $20 billion injection to roads and rail spending translates to two major benefits; more jobs for contractors and more hire gear on site. From site amenities to heavy earthmoving gear, PlantMiner has you covered and can help equipment companies get their gear in front of those looking to hire.

NSW projects such as the North West Rail Link, the WestConnex road and NorthConnex tunnel and CBD light rail – which will benefit from the state's $13 billion electricity network privatisation – and Victoria's removal of 50 level crossings in greater Melbourne will boost the cumulative spend in the two larger states to $80.7 billion between this financial year and 2019, the MBA/Macromonitor report revealed.

These figures, combined with the lobby group's stronger-for-longer view on housing construction – the MBA predicts housing starts to hold above the 200,000-level next financial year – will provide a level of cushioning that prevents a sharp decline as mining-related spending falls away.

Michael Bleby, Australian Financial Review

Construction industry forecasts

The upcoming MBA quarterly forecasts will indicate that extent of the rebalancing taking place within construction.

  • Bleby reports that in the March quarter, building and construction overall fell 2.9 per cent in real terms, reflecting a 9.8 per cent decline in private engineering construction investment.
  • The resource-related slowdown will gain pace this year, pulling overall construction down 4.3 per cent, an Ai Group-Australian Constructors Association report last month said.

Researcher BIS Shrapnel warned WA and Queensland will bear the brunt of slumping engineering spend. Blame can be assigned to slipping iron ore prices in WA and the Queensland Labor government's decision to scrap privatisation plans.

The Master Builders Australia report also showed that non-resource heavy states - particularly NSW - are leading the way with public civil spending. Discussing a new two-speed economy. MBA chief economist Mr Jones exclaimed "from basket case, the State looks set to enjoy a time in the economic sunshine. Low interest rates, pent-up demand for housing, less exposure to the ending of the resources boom as well as a solid backdrop of political stability, are combining to turn fortunes around for NSW."


roadrailspending image Source: NSW Government


However, Mr Jones also urged Victoria to commit to spending soon and make up for the cancelled East West Link road project. "The Andrews government needs to sooner rather than later lift spending on infrastructure as a proportion of the state economy, leaving the politics out and set out out a pipeline of shovel ready major projects to provide long-term certainty."

As we previously reported, the Abbott government recently delivered Victoria an infrastructure olive branch, committing to finish a much needed road upgrade in Melbourne.

We'll continue to keep you up to date with all major projects across every Australian state. If you're looking to capitalise on these opportunities, read more about our work in Victoria and Central Queensland in the last month alone.

In fact, register your plant hire company, and prioritise putting your machinery on site.



PlantMiner is Australia's leading plant, equipment and subcontractor hire marketplace, connecting you with all your construction project hire needs in one place.