Transport Infrastructure Transport infrastructure construction includes the construction of roads , bridges , railways and harbours , and amounted to $ 4.5 billion in work done during 2016 / 17 according to ABS data . This is up 20 per cent from the previous year , and is in fact the highest recorded . The scale of the increase is a direct consequence of heightened activity in roads and railways as a number of publically funded projects lift engineering construction work .
Road construction in Victoria tends to be highly cyclical , driven by both major projects and subdivision activity . In 2014 / 15 , growth in road construction of 54 per cent was driven by a strong housing market ( leading to a surge in privately funded subdivisions activity ). Activity remained at relatively similar levels over 2015 / 16 as subdivisions activity remained strong .
Over the next five years , road construction is expected to rise strongly , reaching a record $ 4.1 billion in 2020 / 21 – 43 per cent higher than the 2015 / 16 total . Growth is expected to be underpinned by the $ 6 billion Western Distributor project , and an increase in highways and arterials construction . There are two major components to the Western Distributor project ; the $ 1 billion Monash Freeway upgrade and the $ 5 billion Western Distributor toll road project .
From 2016 / 17 , we expect to see a significant escalation in railway activity , largely attributable to the Level Crossing Removal program and construction on the Melbourne Metro . To a lesser extent , the $ 600 million extension of the South Morang train line to Mernda will also contribute to engineering construction activity .
The $ 10 billion Melbourne Metro project will be the largest single contributor to engineering activity for the sector in Victoria . The State government will fund the majority of the project , although initially Federal assistance was sought-after and future assistance from the private sector has been kept open as a possibility . The overall engineering construction activity in railways if forecast to average $ 2.0 billion over the next four years , peaking at $ 2.4 billion in 2017 / 18 . Approximately $ 900 million of engineering construction activity each year within Victoria is attributable to the Melbourne Metro .
Bridges and harbours contribute less to engineering construction in Victoria although in previous years the two segments have increased their work done via oneoff projects . For example , engineering construction work within harbours sector increased almost five fold between 2012 / 13 and 2015 / 16 largely attributable to the $ 1.6 billion Port Capacity Project at Port of Melbourne .
Figure 2.4 : Victorian Engineering Construction , $ Billion , 2014 / 15 Prices Transport Sectors
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