The Queensland Major Contractors Association (QMCA), Infrastructure Association Queensland (IAQ) and Construction Skills Queensland (CSQ) have just released a mid -term update to their 2017 Queensland Major Projects Pipeline Report.
Good News and Bad News
Getting the bad news out of the way first, the value of funded projects identified in the update for 2017/18 and 2018/19 has declined slightly from the initial forecast due to delays (funding and environmental) to several resource projects (excluding Adani Carmichael which was not recognised at the start of the year) and also a slowdown in publicly funded projects.
Rail leading the Way
The outlook for 2019/20 and 2020/21 is looking a lot healthier thanks to funding commitments for both cross river rail and inland rail although a cloud still hangs over the former in the shape of the upcoming State Election, with the LNP yet to commit to the project.
The unfunded but credibly proposed projects category has received a major boost in this update thanks to the inclusion of the Adani Carmichael project, given that it has now received all its environmental approvals.
In Conclusion
In summary the report update notes:
Overall, it would appear the worst has now passed for Queensland, with major project activity returning to “new normal” levels over coming years. On the positive side, this “new normal” is likely to be much higher than pre-mining boom levels
Whether this ‘new normal’ is enough to meet the infrastructure needs of a growing State is a question for another day.
You can read the full update here