Issue 53 | The Property Development Review

Mega-Projects

THE MEGA-PROJECTS SHAPING AUSTRALIA’S FUTURE

Author: Marisa Wikramanayakethu Urban Developer

For a country as old as Australia, there is often the notion that somehow the landscape stands still, unchanging, outside natural disaster.

project is estimated to cost a total of $216.7 billion to build and operate the North and East sections from 2019-2084, according to a Victorian Parliamentary Budget Office report released this year. The 19km North section will cost $132.5 billion while the 26km East

But the Australian landscape has always been changing, as nature and humans made their marks. Across its modern history, placemaking and nation-building have significantly changed the face and shape of the nation. Such project bring opportunities—for construction, for development, and more. Here, then, are the top mega-projects that will shape Australian into the near future. As Australia’s population grows, the demand for transport infrastructure has to keep pace. Settlement and development patterns have historically followed transportation lines—if the people cannot get there, they cannot live or work or shop there, and developers cannot sell or lease there. And as our consumption patterns change, Australia’s ability to move people and goods around effectively has been thrown into stark

section will cost $84.1 billion over that period. Building just the East section will cost $34 billion.

The 1700km Inland Rail freight project , sorely needed as we move more to online purchases and delivery across the country, is estimated to cost $31.4 billion. Melbourne’s Metro Tunnel project has also blown out by $2 billion on top of its original $11 billion but is expected to be completed by 2025 with two of the five stations already completed. Its Airport Rail project, estimated to cost $13 billion, has also ground to a halt as mediation continues between the Victorian Government and Melbourne Airport about whether the station should be above or below ground. The Sydney Metro Rail project to deliver 113km of new metro rail has now blown out to $18.5 billion from its previously estimated $11.5 billion to $12.5 billion. Road projects are also under way with 133km of roads built as part of the WestConnex project to connect the Sydney airport, port and CBD with Western and South West Sydney, costing $16.8 billion. Upgrading the Bruce Highway from Brisbane to Cairns to benefit 58 per cent of Queensland’s population will cost about $13 billion for 1700km of road. Meanwhile, cost hikes have caused John Holland and CPB

contrast against the infrastructure of other countries. But it is currently costly to build and develop transport

infrastructure—the lack of the very infrastructure we are trying to build plays a role as the expense to transport materials from overseas and a lack of domestic manufacturing pushes costs up. Economic conditions have also helped drive wages up, increasing the cost of labour. The money to build the infrastructure comes out of the taxpayer’s pocket meaning that the more a government needs to spend as costs blow out, the more money needs to be taken from other services that would otherwise be funded in a Budget. And costs are blowing out: Melbourne’s Suburban Rail Loop

16 – June / July 2024

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