Roads Australia
Media reaction to the infrastructure spending announcements in last week’s Federal Budget has been mixed, with ongoing questions about both funding and priorities.
In a morning-after opinion piece, the AFR noted that the 15 road, rail and port projects to receive funding from the $8.5 billion Budget allocation had a total price tag of more than $45 billion, putting the onus back on the states and the private sector to pick up the shortfall.
Last Saturday’s Weekend Australian claimed there was a $58 billion hole in the Government’s nation building program, saying Infrastructure Australia was now focussed on developing pathways to attract super funds to invest in infrastructure. The story also expressed a concern that some of the 15 projects announced on Budget night might never be built.
The Age opined that beyond the $3.2 billion for the regional rail express, there was little for transport in Victoria. It noted that while the State received more than its fair share of the BAF funding to the states - 43 per cent - there was no getting away from the fact that two of the State’s key transport projects - the $750 million Peninsula Link and the $380 million truck action plan - had been snubbed by the Feds.
In NSW, the media wrap-up was even darker. Both the Herald and the Daily Telegraph made much of the fact that the State Government’s road and rail ‘wish list’ had been largely ignored, laying the blame squarely at the feet of the State Government.
In response, Federal Treasurer, Wayne Swan, reportedly told a business seminar in Sydney this week that NSW was getting its fair share of infrastructure funding, but that there were ‘different timeframes for different regions for different projects’.
Meantime, the Courier Mail reported this week comments by the Prime Minister - visiting Queensland to formally announce Budget funding for the Bruce Highway - that his Government remained committed to an east coast ‘super highway’ linking Melbourne through Sydney to Brisbane and Cairns.
The Courier Mail also carried a report this week that Brisbane CBD workers would be the first to trial a flexible working hours pilot program aimed at relieving congestion.
And back in Sydney, the Herald reported this week that former RTA boss Paul Forward had called on the State Government to sell the M4, toll the M5 East and can the cashback scheme that subsidises motorists living in Sydney’s west.
The Victorian Government says it will deliver the $750 million Peninsula Link project fully-funded and toll-free.
Premier John Brumby announced last week - after the project was excluded from the Federal Government’s Budget night infrastructure funding announcement - that the State was proceeding with the project to secure jobs and build crucial infrastructure for the future.
“Our Government is delivering Peninsula Link toll-free,” Mr Brumby said.
“Last week, we unveiled in the State Budget a record $11.5 billion infrastructure program, which will secure 35,000 jobs as we steer the state through the Global Financial Crisis.
“We allocated more than $354 million in the 2009 State Budget, with the balance of the project to come from funds set aside in the Budget for approved projects.
“This is a nation-building project that our Government would prefer to deliver in partnership with the Commonwealth. We will continue to make the case to the Commonwealth for federal funds.
“The door is still open, but we are getting on with the job of delivering this key part of our $38 billion Victorian Transport Plan, to boost our economy and jobs now when we need it.”
Mr Brumby said the Request for Proposals will be issued in June. Early works on the Lathams Road overpass will begin in July. Construction on Peninsula Link proper will begin in December, with Peninsula Link open to traffic in early 2013.
Peninsula Link will be delivered as an Availability Public Private Partnership, with significant private sector interest, both local and international, coming out of the Government’s invitation for expressions of interest.
The Western Australian Government has announced $1.37 billion for roads spending in the 2009 State Budget, with more than two-thirds - $793.4 million - to be spent on country roads and $357.8 million in the metropolitan area.
State Transport Minister, Simon O’Brien, said last week the roads budget included an allocation of $50.9 million towards Stage One of the long-awaited upgrade of Great Eastern Highway in the City of Belmont by 2013.
“This important road which forms the gateway to our city from Perth Airport will be upgraded with three lanes in each direction from Kooyong Road in Rivervale to Hardey Road in Belmont at an estimated cost of $225 million,” he said.
“In addition, $113.4 million has been budgeted to construct the Mandurah Entrance Road, between the extended Kwinana Freeway and Mandurah Road.
“A total of $34.6 million is assigned for the ongoing construction of Stage One of the Bunbury Port Access Road between South Western Highway and Estuary Drive.”
Mr O’Brien said $122.9 million had been budgeted to be spent in 2009-10 on local government roads, an increase from $116.6 million on the previous year.
“The Government is maintaining its commitment to road safety with $20 million allocated for the ongoing State Black Spot Program and maintaining funding for the Safer Roads Program with $36 million for 2009-10,” he said.
“The roads’ budget reflects the growth in WA’s economy and is designed to meet community demand for improved road transport services.”
Southern Gateway Alliance, comprising Leighton Contractors, WA Limestone and GHD, has been selected by Main Roads WA as the preferred proponent to build the new Mandurah Entrance Road.
The project is being jointly funded by the Federal and Western Australian governments, with a total budget of $130 million.
Mr Ray Sputore, General Manager, Western Region Construction for Leighton Contractors, said design and construction of the project was expected to commence in mid 2009 creating up to 200 new jobs.
“The seven kilometre Mandurah Entrance Road is a key piece of infrastructure and we welcome the Federal Government’s decision to bring forward funding for the project. It will link the State’s largest ever road project, the Kwinana Freeway extension - Forrest Highway, to a major regional centre,” he said.
Mr Sputore said the selection of Southern Gateway Alliance highlighted the ability of the team to deliver large scale infrastructure projects in the region on budget and ahead of schedule.
“We are pleased to be working with Main Roads and our Alliance partners to deliver this vital piece of road infrastructure,” Mr Sputore said.
The Mandurah Entrance Road is expected to open for traffic by mid 2010.
Thiess John Holland has won the coveted 2009 Australian Construction Achievement Award for the delivery of the EastLink project in Melbourne.
Project Director, Gordon Ralph, accepted the award on behalf of the Thiess John Holland joint venture at a function held in Sydney earlier this month.
Considered Australia’s most prestigious construction honour, this is the third time in five years that John Holland has won the award. In 2004, John Holland won the award for the delivery of the Darwin to Alice Springs Railway project, and in 2006 for work on the Runway Main Construction Works project at Melbourne Airport.
"This award acknowledges the outstanding quality of work that went into the delivery of EastLink," said David Stewart, John Holland’s Group Managing Director. "Over 13,000 people worked on the project from tender to completion, developing innovative construction solutions to overcome many challenges. I congratulate all of the Thiess John Holland joint venture staff involved over the 48 months it took to complete."
The Chair of the 2009 ACAA judging panel, Professor Archie Johnston, said that while all five finalists were outstanding, the EastLink project was exceptional across all of the evaluation criteria.
"The successful delivery of the EastLink mega project demonstrates that our construction industry is amongst the best in the world, and stands willing and able to successfully complete many more major infrastructure projects and resource projects in the future, both in Australia and overseas."
Opened almost six months ahead of schedule, the $2.5 billion EastLink project was delivered in partnership with Thiess Pty Ltd as Joint Venture Partner, in close collaboration with the ConnectEast consortium, the Victorian Government’s Southern Eastern Integrated Transport Authority (SEITA) and multiple other stakeholders.
The Australian Construction Achievement Award is jointly organised by the Australian Constructors Association and Engineers Australia.
The other four finalists this year were:
Following a sustained period of solid growth, Australia’s leading construction companies are forecasting a marked slowdown in the rate of activity growth through 2009, followed by a decline in 2010, according to the latest Australian Industry Group/Australian Constructors Association Construction Outlook survey.
The survey, released this week, reveals that after rising by 9.9% in 2008 (current prices), the value of engineering and commercial construction work is forecast to fall to a 2.3% growth rate in 2009. Thereafter, a fall of 2.4% is expected in 2010 driven by a reduction in investment in the resources sector, declines in mining related infrastructure projects, and weaker private sector commercial building activity.
Despite this, the total value of construction work done by the private sector is expected to remain at a high level overall, with a forecast value of $91.2 billion in 2010, to be 20.8% above the level of 2007, and to represent an almost 4-fold increase on the previous low point of 2001.
ACA President, Wal King, said: “The significant slowdown in construction growth during 2009 and the contraction forecast for 2010 will place significant pressures on firms already facing intense competition for available work and tighter profit margins.
“Nevertheless, there are still significant projects either underway or in the pipeline which should help to prevent a more substantial decline during 2010. Moreover, the Federal and State governments' infrastructure plans, the Building Australia Fund and the fast tracking of funds directed at infrastructure from the Education Investment Fund and the Health and Hospital Fund are expected to continue to stimulate construction opportunities,” Mr King said.
For more information, go to http://www.aigroup.asn.au/economics/constructionsurveys
Submitted by Mark Bowmer on Friday May 22nd 2009 1:13pm
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