Australia - Transport and Logistics: Government investments to drive growth (Strategy, Performance and Risk Analysis)
The Australian Government committed infrastructure funding of US$57.6bn for 2013-2027 to develop transport networks. This includes Western Sydney Airport, which will provide additional capacity to meet the region’s growing tourism demands. In addition, the Murray Basin Freight Rail Project, expected to be complete by the end of 2018, will improve the country’s rail freight network and enhance connectivity with the ports of Geelong, Portland, and Melbourne. Shipping companies are making significant investments in advanced technologies such as cloud computing, the internet of things (IoT) and robotics. All of this will drive the efficiency of transport operations.
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Increase in traffic to drive road transport GVA
Australia’s, road transport GVA registered a CAGR of -5.3%, falling from US$24.1bn in 2012 to US$18.3bn in 2017. It is anticipated to post a CAGR of 1.0%, from US$19.4bn in 2018 to US$20.2bn in 2022. An increase in freight and passenger traffic will drive road transportation GVA.
Air transport GVA to increase over the forecasted period
Air transport GVA registered a CAGR of -2.4%, from US$8.4bn in 2012 to US$7.4bn in 2017, but is anticipated to post a CAGR of 4.8%, from US$8.1bn in 2018 to US$9.8bn in 2022 due to a renewed government focus on connectivity. In the 2015-2016 budget, the government announced US$26.1m in funding spread over a period of four years for remote aerodrome upgrades under the Regional Aviation Access Programme (RAAP) - Remote Airstrip Upgrade Funding Component.
New entrants to drive port capacity
Australia’s port container storage capacity recorded a CAGR of 2.8%, rising from 7.0 million tons in 2012 to 8.0 million tons in 2017 and is anticipated to post a CAGR of 3.0%, from 8.2 million tons in 2018 to 9.3 million tons in 2022. The capacity increase will primarily be due to new entrants in the port sector. Hutchison Ports Australia began the operation of a container terminal at Brisbane in January 2013 and one in Sydney in November of the same year. In 2017, Victoria International Container Terminal (VICT) entered container stevedoring industry in Australia. VICT’s Webb Dock in Melbourne is the first Australian stevedore to fully automate its terminal operations.
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