Major rail project investment shrank in 2019-20 but from 2020-21 onward, the potential pipeline exceeds previous ANZ Research expectations.
The upcoming Major Projects Report suggests the peak in Australia’s potential rail investment pipeline could now be close to $A20 billion in 2022-23; up from previous forecasts of $A15 billion.
It’s important to note much of this is due to cost hikes on projects underway or in planning, rather than more projects. Across just five of the biggest projects, cost estimates are up $A17 billion. You can read more in the report.
Investment in major electricity projects was less than expected in 2019-20, and ANZ Research expects a further decline in the current financial year.
But the medium-term outlook remains positive. In 2021-22, the pipeline could almost double, to average more than $A12 billion a year over the rest of the forecast horizon.
Read ANZ Research’s Major Projects Report, set for release on February 11, to find out more.
Catherine Birch is a Senior Economist at ANZ