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Australian transport infrastructure spending to fall behind other markets

This shift means that while transport projects will still receive funding, the overall emphasis and volume of new major projects will decrease
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Australia and New Zealand’s transport infrastructure projects are expected to experience the slowest spending growth over the next 24 months.

An Ansarada report, titled 2025 Transport Infrastructure Outlook Report, found that while there will be a 14 per cent increase in transport infrastructure project activity in the next two years, Australia and New Zealand (ANZ) are expected to lag other markets.

North America is expected to have a 19 per cent increase, Latin America (25 per cent), Middle East (26 per cent), Europe (31 per cent), Africa (31 percent), and Asia Pacific excluding ANZ will see a 54 per cent increase.

In 2024, ANZ ranked third with a total of 436 transport infrastructure transactions, valuing $17.8 billion in total for transport infrastructure transactions.

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However, due to governments’ increasing focus on social infrastructure, the region is expected to fall behind over the coming 24 months, meaning that while transport projects are still receiving funding, the overall emphasis and volume of new major transport projects will decrease compared to previous periods.

“As transport infrastructure projects become increasingly complex and large-scale, the demand for efficiency, transparency, and risk mitigation has never been greater,” Ansarada managing director Justin Smith says.

“While we haven’t yet seen a return to pre-pandemic infrastructure spending, the momentum is there. Following a decade of substantial spending on major transport projects, there’s a noticeable shift towards social infrastructure and the energy transition, particularly renewable energy projects.”

The report covers key themes such as expected transport infrastructure spending growth, the current state of procurement processes, approaches to risk allocation, the evolving role of environmental, social and governance (ESG) considerations, and the inevitable transition to digitalisation.

As the complexity and scale of transport infrastructure projects continue to grow, the need for efficiency, transparency, and risk mitigation has never been more pressing.

The report highlights the growing strain faced by government agencies, transaction advisories, and private transport infrastructure developers to manage the procurement of increasingly complex, high-stakes projects.

“Procurement strategies must align with the capabilities of the marketplace,” level crossing removal projects advisor Mark Betts says.

“You can’t issue a tender for something the market can’t deliver. It requires thorough analysis of market capacity and capabilities, and sometimes a long-term approach to build that capability.

“For example, Australia’s heavy rail investment over the last decade required years of capacity building. Misaligned procurement can lead to poor outcomes, so understanding the market is essential.”

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