Australian rail construction activity and investment is set to boom over the coming years, peaking at $13.3 billion in 2023-24 and driven by mega projects like the Sydney Metro, Inland Rail and Melbourne Airport, according to new outlook.

NSW, Victoria and Queensland will account for 77 per cent of major project work in 2023-24, the Australian Rail Market Outlook released on Tuesday says.

It says Australian railways activity across construction and maintenance rose to a record $12.9 billion in 2021-22, following a sharp cooling in activity between 2011-12 and 2015-16.

“The forecast for railway construction activity over the short to medium term is driven by a strong, funded pipeline spanning heavy haul, freight and passenger projects,” the report says.

It says growth is being driven by population growth, urban expansion, carbon emission targets and climate change-driven weather events affecting the national rail network.

Activity is set to remain above current levels until 2026-27 and average $14.4 billion over the next five years, before dropping to $8.6 billion in 2031-32.

Opportunity to drive innovation

Releasing the BIS Oxford Economics report on Tuesday, the Australasian Railway Association (ARA) said the figures show the sector is growing, with $129 billion in rail construction and maintenance forecast over the 10 years to 2031-32, compared to $96 billion over the previous decade.

The figure is forecast to hit $154 billion in the next 15 years.

ARA chief executive Caroline Wilkie said the trend was anopportunity to drive innovation and ensure greater productivity and efficiency in  the rail industry.

“ represented a tremendous opportunity to drive innovation and ensure greater productivity and efficiency for the rail industry.

Queensland auditor finds big spending on rail

It comes as a review of major infrastructure projects by the Queensland Audit Office released this month found the state’s budgeted capital expenditure had increased from $9.9 billion in 2018–19 to $12.6 billion in the 2022–23 budget, with  lion’s share (46 per cent of costs and 22 per cent of projects) in Transport and Main Roads.

Major projects as of June 2022 included the Cross River Rail, New Generation Rollingstock, Faster Rail upgrade, Coomera Connector stage 1 and stage 3 of the Gold Coast Light rail.

The State’s largest infrastructure project, the Cross River Rail, is budgeted to cost $6.9 billion and expected to be completed in 2025.

The City of Gold Coast is partnering with the Australian and state governments to deliver the Gold Coast Light Rail with Council stumping up $120 million towards the $1.2 billion Stage 3 pricetag.

The Queensland government has also committed a total of $7.1 billion as part of the 2022–23 Queensland state budget to boost train manufacturing and deliver 65 trains within the next decade.

According to the BIS Oxford Economics report, rail activity in WA will be boosted over the next two years as the METRONET program ramps up, while activity in the ACT will get a lift from the Canberra Light Rail Stage 2.

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