McKinsey discusses its 2019 report.
In September 2019 McKinsey published a report entitled Australia’s Infrastructure Innovation Imperative. It describes Australia as “among the most advanced economies globally in effective collaboration between the public and private sectors to deliver transport, energy and social infrastructure. It has also become a leader in private infrastructure investment […]. The country spent around 1,177 AUD per capita on transport infrastructure in 2017, ranking second among Organisation for Economic Co-operation and Development countries [after Norway].”
Railway-News spoke to two of the report’s authors, Ishaan Nangia, Partner, McKinsey, who is based in Melbourne, and Steve Joseph, Associate Partner, McKinsey, who is based in Sydney, about their findings.
Ishaan Nangia: “Over the past 15 to 20 years, Australia has been undertaking a significant public infrastructure programme, and there is approximately A$200bn more in the pipeline ahead.
“In particular, the programme has included public rail and metro ‘mega-projects’ to build capacity to meet population growth and modernise legacy rail networks in our major cities, including the $40bn+ Sydney Metro project, the $3bn Sydney Light Rail project, the $10bn+ Melbourne Metro project and the $3bn+ Cross River Rail project in Brisbane. Added to this is the $10bn Inland Rail project (Melbourne to Brisbane) to significantly increase freight rail capacity.
“Rail accounts for a large proportion of total major project spend. In some states it’s well over 50%. Recent rail projects tend to drive attraction of market entrants and global expertise, development of the financing models and risk allocation, and evolution of new project techniques and innovations.”
Steve Joseph: “Compared to road and social infrastructure projects, rail projects tend to have:
“And, ‘mega-projects’ often involve major tunnelling (as dedicated corridors no longer exist for network expansion).”
Ishaan Nangia: “As detailed in our recent report, we believe there are significant opportunities for innovation in rail and in other infrastructure sectors. These include the way that rail infrastructure projects are prioritised, planned, designed and delivered.
“Notwithstanding this, Australia generally performs well on a number of aspects of major rail project delivery, including:
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