Home' Future Building: The Australian Infrastructure Review : Volume 8 Number 1 Contents futurebuilding 47
DW: What feedback are you getting from those international
partners regarding how they are viewing Australia’s infrastructure
investment market versus other markets?
DC: They still see it as a really attractive market. There’s
plenty of equity for appropriately structured deals, for both local
and offshore opportunities.
DW: Is political risk on anyone’s radar?
MC: The International Institute for Management Development
(IMD) business school recently released a report comparing the
competitiveness of countries in a number of different areas, and
Australia has fallen outside of the top 20 for the first time in a long
time. Political stability and governance around policy decisions
are things that we need to get right, and this includes having
governments and industry working together.
MH: The natural tendency of these sessions is to talk about
deals and the pipeline, but our priority is very much the portfolio
we have at the moment. We have more than $10 billion invested
in key assets around Australia.
Our number one objective is to get the best out of that
portfolio and deliver the best return back to investors. We’ve
heard about the growth that’s occurring in Australia – this is
not just a recent spike – and this is going to continue for the
next 10 to 12 years, at least. We expect to be getting six million
extra people living on the eastern seaboard, and we have a
significant challenge in trying to stay ahead of that growth.
Over the next seven years, we’ve got more than $10 billion
worth of new capital to be put into the Port of Brisbane, NSW
Ports (Port Botany and Port Kembla), Brisbane Airport and
Melbourne Airport, just to keep up with that pace of growth.
For example, at Brisbane Airport, we’re delivering the
world’s largest ever privately financed and funded runway
development. That’s $1.3 billion worth of new runway
construction to accommodate growth in Brisbane and South
East Queensland over the next 30 years.
We’re also trying to get existing assets to operate more
effectively. Right now, we only have one track going into and out
of Port Botany, which we hope will soon be Australia’s busiest
port. Rail has been a great success, representing almost 20
per cent of container movements, and we are planning on
significant further growth to address road congestion and the
growth of nearby intermodal facilities, including our own at
Image courtesy of Melbourne Airport
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