THE OECD has singled out Australia for needing to improve infrastructure development as it predicts air traffic to double, freight to triple and port activity to quadruple world-wide by 2030.
The Strategic Transport Infrastructure Needs to 2030 report found that most of the current infrastructure world-wide could not handle even a 50% increase in demand.
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In releasing the report the OECD said: “Some countries have begun linking strategic infrastructure planning to long-term infrastructure funds, as is the case in Canada, Denmark, Switzerland and the United Kingdom.”
“But other countries, including Australia, India and the United States, should improve financing mechanisms to ensure funding is consistent with strategic infrastructure needs.”
OECD International Futures Programme spokesperson Barrie Stevens said the system of State and Commonwealth Governments had made infrastructure planning difficult in Australia. While some of those problems have been addressed by the creation of an infrastructure agency three years ago, there was still need for better long term planning.
“In 2010, 2011 Australia had big problems getting products and raw materials out of its ports. Port handling is really stretched, Newcastle is chock-a-block and so is the West Coast.”
Mr Stevens said Australia really needed to plan for increased airport capacity.
“There seems to be capacity problems and also problems getting people in and out of the airport.”
Upgrading key infrastructure will drive competitiveness, boost trade and promote economic growth. But new ways of financing are needed as the traditional model of public funding for major projects is likely to dry up.
“Australia needs to identify what they think is critical infrastructure to the economy at a national level and to develop a better long term view for new rail roads, new port facilities and air traffic management. A lot of countries do this on a reactive basis.”
“The recession is not going to last forever and after it many countries will be caught with overstretched facilities.”
“It helps to know where the money is coming from. How much is going to come from taxpayers? From user fees? From businesses? Once you have that start then it gives planning more credibility. A number of countries have an infrastructure fund. The UK has one, that Canadians do this, it’s nothing new under the sun.”
“Australia is sitting pretty at the moment. East Asia and South Asia is where a lot of the world’s growth is going to come from. Australia is well placed to be part of that. The question is whether they have the infrastructure to handle that growth.”
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Australia needs to improve infrastructure planning: OECD | News.com.au