Investment Opportunities in Australian Infrastructure Brochure PDF
Investment Opportunities in Australian Infrastructure Brochure PDF
Investment Opportunities in Australian Infrastructure Brochure PDF
opportunities
in Australian
infrastructure
Contents
WHY AUSTRALIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
CONSTRUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
FINANCING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
OPERATORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
INVESTMENT OPPORTUNITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
5
5TH LARGEST ECONOMY
IN THE ASIAN REGION
IMD World Economic Outlook, October 2015
Nominal 2015E
GDP:
US$1.3 TRILLION
IMD World Economic Outlook, October 2015
Nominal 2015E
AAA AAA
CREDIT RATING
Standard & Poors, Moodys and Fitch
POPULATION:
23.7 MILLION
(March 2015) ABS Cat. No. 3101, 24 September 2015
1. A
ustralian Government Treasury, 2015 Intergenerational Report: Australia in 2055, page vii.
2. A ustralian Government Treasury, 2015 Intergenerational Report: Australia in 2055, page 1.
3. Infrastructure Australia, Australian Infrastructure Audit, May 2015, page 5.
4. Infrastructure Australia, Australian Infrastructure Audit, May 2015, page 8.
60
872,849 kilometres
of roads in Australia
32,784 route-kilometres
of open railway in Australia
1,659 route-kilometres
of urban railway in Australia
60
60
747 public hospitals and
612 private hospitals
in Australia5
60
Robust freight growth Welcoming
Australias trade performance is increasingly driven by its
proximity to Asia, with 10 of its top 12 export markets in the
investment destination
region. Asias appetite for Australian minerals and energy The Austrade publication Why Australia Benchmark Report
resources continues, and there is growing demand for 2015 on investment in Australia shows Australia is a very
Australian agriculture, merchandise and services. positive place to do business. It ranks 10th in the world for
ease of doing business, and fourth when compared with
As a major exporter of bulk commodities and other
economies with a similar or larger population. Australia also
merchandise, Australia expects road freight to grow by
has a very strong and efficient regulatory environment, it is
50 per cent and rail freight to grow by 67 per cent to 2030.7
rated highly as an open market and its governance quality
For example, as at April 2015, Australia had A$225.8 billion
is among the best in the world.11
worth of committed resources and energy projects 8 , and all of
these commodities need transportation to be moved offshore. The Australian Government has identified infrastructure
As an island nation, the country is particularly dependent on development as a priority and will play a leading role in
well-functioning seaports and airports to facilitate trade with building the countrys roads, rail, seaports and airports over
the world. the next seven years.
RECENT PRIVATISATIONS UNDER The white paper included a Northern Australia Transport Package
THE ASSET RECYCLING INITIATIVE to build and make better use of transport and infrastructure. The
package includes A$600 million for capital investment in specific
New South Wales road projects, and A$5 million for cross-jurisdictional rail freight
analyses. The white paper also announced the establishment
The NSW Government is leasing 49 per cent of a A$100 million beef roads fund.
of the states electricity network. The proceeds
will be invested in the Rebuilding NSW plan, Northern Australia Infrastructure Facility
which involves a range of projects such as the In the 201516 Budget, the Australian Government announced
Sydney Rapid Transit rail project (including a a A$5 billion loan facility to fund the productive capacity of
second harbour crossing) and the Parramatta northern Australia. The facility provides concessional loans to
Light Rail project. projects that would not otherwise be built.
Australian Capital Territory The Northern Australia Audit report identified more than 180
The ACT Government is privatising nearly infrastructure requirements across sectors including airports,
A$400 million worth of assets including betting communications, energy, ports, rail, roads and water.12
agency ACTTAB, public housing and commercial For more information, visit naif.treasury.gov.au.
property. The proceeds will be invested in the
territory governments
There are three levels of government in Australia with defined
Infrastructure is important for law-making powers: federal, state and territory, and local. All
three levels work together to deliver public infrastructure.
Australia because of its size,
The federal government is the main revenue-raising government
the geographical dispersion of
in Australia. It raises money by collecting taxes on incomes and
its population and production company profits, tax on goods and services (GST) and through
centres, and its remoteness other charges such as fuel excise and customs duties. State
and territory governments have much of the responsibility for
from other markets. planning and building public infrastructure. As such, most major
infrastructure projects are developed in partnership and jointly
ECD, International Futures Programme, Pension
O
funded by federal and state governments.
funds investment in infrastructure, September 2011
12. Infrastructure Australia, Northern Australia Audit Infrastructure for a Developing North, January 2015.
Victorian Comprehensive
Cancer Centre 25 years: design, Plenary Group, Grocon,
construct, finance Victoria Health 1,000 PCL, Honeywell, UniSuper,
Specialist cancer treatment hospital, and maintain Partners Group
oncology R&D, education and training
McDonnell Dowell
Constructors, Bombardier
Transportation, KDR Gold
Gold Coast Rapid 15 years: design,
Coast Pty Ltd (Keolis
Transit Phase 1 build, finance,
Queensland Transport 1,296 and Downer EDI), Aveng,
operate and
13 km light rail public transport system Marubeni Group, Palisade
maintain
Investment Partners,
International Public
Partnerships, Plenary Group
To complete these projects, the Australian Government is engaging domestic and international companies with experience in
complex engineering and construction projects.
construction companies Lend Lease on the A$3 billion NorthConnex road tunnel
project in Sydney, which spans nine kilometres in length.
active in Australian
infrastructure Proposed construction
Samsung C&T project pipeline
Samsung C&T, one of the largest conglomerates in South Korea,
Sydney Metro City & Southwest
was part of the winning consortium selected in September 2015
to design and construct Sydneys new M5 Motorway, which is The NSW Government is planning Stage 2 of its Sydney
part of Australias largest road project WestConnex. To bid for Metro project, the Sydney Metro City & Southwest rail line.
the project, Samsung C&T formed a joint venture with Australias Due to open in 2024, the 30-kilometre rail line will include
Leighton Contractors and Spanish company, Dragados. approximately 12.5 kilometres of twin rail tunnels, as well as
an underground Sydney Harbour crossing and CBD rapid
The new M5 Motorway win follows Samsung C&Ts successful
transit line.
tender for the A$2.7 billion M4 East stage of the WestConnex
project in June 2015. This success represented the first Western Harbour Tunnel
contract for a Korean construction company on a major public
The NSW Government has announced plans for a second
sector infrastructure project in Australia. The consortium
northsouth road tunnel for Sydney Harbour. The Western
is a joint venture with Leighton Contractors and John Holland
Harbour Tunnel will give road users a new route from the
(which is owned by the Chinese Communications
inner west to employment hubs in the north and northwest
Construction Company).
of Sydney.
Samsung C&T is also undertaking contracts for the Roy Hill
Canberra University Hospital
Project in Western Australias Pilbara region. These contracts
include constructing a 347-kilometre rail line, as well as a port The ACT Government plans to build a 140-bed sub-acute
and iron ore processing facilities. hospital on the campus of the University of Canberra. The
facility will provide a range of rehabilitation services, treat
Acciona
various mental health conditions and provide targeted care
As a member of the Nexus consortium, Spanish conglomerate for ageing Canberra residents.
Acciona was awarded the A$1.6 billion contract to design,
Melbourne Metro Rail
construct, finance and operate the Toowoomba Second Range
Crossing project a 41-kilometre highway in Queensland. The Victorian Government announced plans to build the
Melbourne Metro Rail project, which will include two nine-
Acciona has been active in the Australian market for many years.
kilometre rail tunnels and underground stations across
It was part of the Transcity consortium (which included Ghella
Melbournes CBD.
of Italy and BMD of Australia) that completed the 4.6-kilometre
Legacy Way tunnel in Brisbane, valued at A$1.5 billion.
Major investment opportunities for the private sector direct and indirect continue to grow in Australia, especially as state
governments seek to take advantage of the Asset Recycling Initiative. Infrastructure Australia has identified up to A$219 billion
in publicly owned assets with privatisation potential.
Port of Fremantle
foreign investment invest in infrastructure assets in their own right, while smaller
funds will generally use a specialist infrastructure manager
to gain exposure.
Keolis
Roads Seaports
Australias road network is 872,849 route-kilometres in Australias island status and liberalised trade policies offer
length as of 2013, with 144,011 kilometres of urban roads tremendous potential for future growth in port freight. The
and 728,838 kilometres of non-urban roads. In 201213, weight of international sea freight to and from Australia
203.6 billion tonne-kilometres of freight was carried on has increased by 87.8 per cent over the past 10 years,
roads. Domestic road passenger movements within growing by 7.3 per cent per annum.19 Infrastructure Australia
Australia was 413.3 billion passenger kilometres.18 has identified up to A$11 billion of seaport assets with
privatisation potential.
Rail Airports
Australia is investing in rail freight infrastructure to increase
the volume of freight that can be transported by trains Australia is the worlds 14th largest aviation market based
and to ease urban congestion. The Australian Government on passengers transported. 20 Total passenger movements
is progressing planning for the estimated A$10 billion have increased by 49.6 per cent between 200405 and
Melbourne to Brisbane inland rail project, committing A$300 201415, growing by 4.1 per cent per annum. In 201415,
million for pre-construction work in the 2014 Budget. total passenger movements totalled 147.4 million. 21
Limited partners
Social infrastructure
AustralianSuper Like many countries, Australias population is ageing, with
Construction and Building Industries the number of Australians aged 65 and over increasing from
Superannuation Fund 11.6 per cent of the population in 1993 to 14.4 per cent in 2013.
This rate is projected to accelerate in coming years and grow
Future Fund
at a faster rate than the broader population.
HESTA
Australias ageing population will require federal, state and
MTAA Super Fund
territory governments to spend an increasing proportion of their
QSuper
income on health and aged care facilities. Governments will be
Queensland Investment Corporation looking to the private sector to bridge funding gaps.
Retail Employees Super Trust
In addition, Australias fast-growing general population will require
UniSuper additional schools, defence, justice and other social infrastructure
Victorian Funds Management Corporation to be constructed.
17. Minister for Infrastructure and Regional Development speech, IPA Partnerships 2013 Conference keynote address, 18 October 2013.
18. BITRE, Australian Infrastructure Statistics Yearbook 2014.
19. BITRE, Australian sea freight 201213.
20. World Bank, Infrastructure Databank.
21. BITRE, Airport traffic data 198586 to 201415.
22. Bureau of Resources and Energy Economics, Electricity Generation Major Projects, April 2015.
austrade.gov.au/invest