Infrastructure – The New Mining Boom

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Cityscape view - Infrastructure - Australia's New Mining Boom

With the mining boom at its end and second hand dealers over stocked with civil machinery, contractors and civil companies must evolve, change their mind set and look to infrastructure projects they may have passed over in the past. This may require an out-of-the-box shift in strategy and sometimes machinery purchase or lease options may have to change to ensure that their current fleet is consistent and up to date with the latest technology required with most new infrastructure projects.

The Road and Bridge construction industry is just one sector which encompasses civil works which has shown moderate growth between 2011 and 2015 with expected growth to increase annually to around 2.2% from 2016 to 2021. In a $19.3bn industry, this could be great news for all those machines now sitting idle left over from the mining boom.

Victorian projects, for example, provides about 15% of the industry’s annual revenue and despite the failed start of the East – West link, is still showing signs of growth. One such project that has recently been announced is construction works to widen the City Link Tullamarine Freeway. This 24 kilometre, $1.3 billion project will add an extra 33km of lanes to improve traffic flow in this corridor and is expected to create approx 700 construction jobs. All good for the earth moving and civil contracting industry and other associated trades. Construction of this project has started in October 2015 and is expected to be completed by 2018 in stages, providing a good flow of civil work throughout the project timeline.

Other major projects proposed to start in the near future in Victoria include the City Link Western Distributor, Melbourne Metro Rail Project, Level Crossing Removal Project and the Regional Rail Upgrade – a total of at least $24 billion in projects over the next decade.

More information about the City Link Tullamarine Freeway project can be found at the department’s website http:www//economicdevelopment.vic.gov.au/transport/rail-and-roads/citylink-tulla-widening

So don’t sell or mothball those machines just yet. Yes the mining boom we have all enjoyed for the last 15 to 20 years is over, but now we should be ramping up for the infrastructure boom!!

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