From Roads to Renewables: Australia’s Infrastructure Is Evolving for the Future
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By Justin Smith, Managing Director of Ansarada
Australia’s transport infrastructure sector is at a critical crossroads as it navigates rising costs, climate change challenges, ageing assets, and regional connectivity issues.
Despite ranking third globally in total for transport infrastructure transactions in 2024, with 436 transport infrastructure transactions totalling USD 10.7 billion, Australia and New Zealand are now slightly lagging behind, according to Ansarada’s recently released Transport Infrastructure Outlook Report. The report, developed in partnership with Infralogic, found that while the region is set to see a modest 14% increase in transport infrastructure project activity, this growth is far from enough to keep pace with global activity.
Other regions, such as the Asia Pacific (excluding ANZ), Europe, and Africa, are experiencing sustained project momentum in critical sectors such as roads, airports, and seaports. Asia-Pacific, in particular, is poised to dominate global transport infrastructure investment over the next two years, fuelled by the region’s rapid economic growth, urbanisation, and ambitious national infrastructure plans in countries such as India, Indonesia, and Vietnam.
As the complexity and scale of transport infrastructure projects continue to grow, the demand for efficiency, transparency, and risk mitigation has never been greater. The key question now stands – how can Australia and New Zealand sustain momentum from previous years?
A shift towards a greener future
While Australia is expected to witness a slowdown in its transport infrastructure project activity, it doesn’t mean that work has stopped completely. The shift simply means that while transport projects are still receiving funding, the overall emphasis and volume of new major transport projects will decrease compared to previous years.
The report found that a key factor in this slowdown can be attributed to the pivot towards social infrastructure and the energy transition, particularly renewable energy projects. While this is a necessary evolution and key to sustaining the economy for the long run, the challenge the industry will face lies in creating a one-size-fits-all approach that takes into account the urgency to deliver both large-scale infrastructure and sustainability considerations.
As the world shifts towards greener and more socially responsible infrastructure, insights from the report indicate private developers will need to strike a balance between immediate project demands and long-term ESG objectives to remain competitive, with government agencies increasingly under pressure to meet evolving regulatory requirements and public expectations.
How can Australian transport infrastructure projects leverage technology for success?
Despite these hurdles, the future is promising. 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. Artificial intelligence, business software, and other advances in technology have yielded new opportunities to streamline project procurement so that processes become more efficient from inception to completion. In fact, almost half (42%) of respondents identified cost reductions as the leading advantage of digitising procurement processes, with 37% also noting the ability to improve stakeholder communication.
Digital innovation will be critical to meeting future demands. By automating workflows, tracking communications, and ensuring data integrity, these solutions empower procurement teams to make faster, smarter, and more informed decisions. It’s time to embrace these technologies to eliminate redundant tasks and focus on the strategic priorities that drive the process forward.
Public-private partnerships (PPPs) and alternative project delivery models have also been proven effective globally in transforming infrastructure development into a more efficient and sustainable process by bridging funding shortfalls, mitigating risks, optimising maintenance, and expediting project timelines.
How can we continue the momentum?
Known as the ‘lucky country’, Australia’s transport infrastructure sector has long been a cornerstone of economic development, linking cities, industries, and people across vast distances. As new transport infrastructure priorities arise, there is an opportunity for Australia to continue being competitive by sustaining momentum and prioritising transport infrastructure. As demand for efficiency, transparency, and risk mitigation increases, the role of digitalisation and innovative procurement management tools will become even more critical in shaping Australia’s transport future.