Recently released market study: Australia Infrastructure Report Q3 2010

June 14, 2010 - PRLog -- Australia's infrastructure sector is one of the most sophisticated in the world in terms of project finance operations and business environment. This context, combined with strong fundamentals for future opportunities in the infrastructure sector make Australia the BMI Infrastructure Team's favourite developed market.

Australia was one of the first countries to embark on the public private partnership (PPP) scheme - to use private funding to develop infrastructure projects. As a result, it has the most sophisticated market for PPP schemes in the world, according to BMI's project finance ratings. Australia's score of 80.3 out of 100, reflects a stable and well organised political system, sophisticated financial infrastructure, a competitive operating environment and a transparent and coherent regulatory environment.

Australia's business environment is the second highest scoring in BMI's infrastructure business environment ratings, losing out on the top spot by just 0.5 points. The presence of Infrastructure Australia (IA) means there is a coherent strategy for infrastructure investment. IA was established in 2008 to consolidate infrastructure investment by creating a plan for the country's needs, as well as implementing these plans in coordination with governments and the private sector. For business environment, like project finance, strong fundamentals present low risks to investors and a sizable construction industry with consistent growth expectations, offers future opportunities for construction companies and investment funds alike.

Despite being a developed country, there is still plenty of scope for infrastructure investment in Australia due to the sheer size of the country and how relatively under-developed it is. As a result, there are plenty of opportunities for investment across the infrastructure sectors.

Energy & Utilities: In March 2010, Australia's Minister for Resources and Energy Martin Ferguson, stated that AUD100bn (US$92bn) investment is needed in electricity generating and transmission infrastructure over the next decade. This considerable amount of required investment, is driving our forecasts for the energy & utilities infrastructure industry value, which we are anticipating will grow by 13.17% y-o-y on average between 2010 and 2014. The vast opportunities should push energy & utilities infrastructure industry's share of infrastructure industry value ahead of transport infrastructure's by the end of our forecast period, when the ratio will be 58:42 to energy & utilities.

Transport Infrastructure: Australia's transport infrastructure industry is being driven by two factors: the demand for exports by China and the demand for passenger transport services. The first factor has led to increased investment in ports and freight railways in Western Australia, Queensland and New South Wales. A number of ports are adding coal terminals in an attempt to cater for insatiable demand from China, which is anticipated to continue over the mid to long term. New mines are being connected to ports via freight railways. Additionally, the Australian government's plans to privatise and lease a number of freight transport assets will bring investment into the sector. In terms of passenger services, new roads, urban transport and even a high speed rail way are in the pipeline. In Sydney alone, the Metropolitan Transport Plan, announced in February 2010, envisages AUD50.2bn (US$45.1bn) of spending on transport over the next 10 years. These two factors are driving forecasts for 4.4% growth on average per year for Transport Infrastructure Industry value between 2010 and 2014.

Although both the technical elements and the real economy plans indicate that Australia's infrastructure market will present strong and stable opportunities over the coming years, there must be some qualifications outlined. In the short term, Australia's construction industry is still suffering. A recent report from the Australian Industry Group showed that the construction industry contracted in March 2010, following two months of growth (so far) in 2010. Falling new orders in the engineering sector led engineering activity to decline in tune with the industry as a whole. Continued tight credit conditions have been one source of frustration. However, these risks can be seen to some extent as short-term factors. With the global financial climate still in turmoil, the construction industry will be weakened by financing constraints for some time. However, over the long term, as financing returns, the opportunities in Australia, matched with the attractive operating environment, will drive growth in the sector.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/67631_australia_infrastructure...

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.