A new report published by the Bureau of Resources and Energy Economics (BREE) confirms that the increasingly strong demand for commodities has confirmed the massive infrastructure demand in Australia’s regions.

 

The Australian bulk commodity exports and infrastructure outlook to 2025 report examines global demand and Australian supply of key commodities and the timing of infrastructure investment across Australia’s major minerals regions.

           

"To maximise long-term benefits from Australia's resources boom, physical and social infrastructure must keep pace with potential increases in export volumes," Minister for Regional Development Simon Crean said at the report’s release.

 

"But no one government alone can fund the massive demand for infrastructure. Such a view inevitably results in buck-passing, inaction and a blame game.

 

"The alternative is a partnership between the three levels of government, and where appropriate, the private sector. Our Government is paving the way for these strong investment partnerships.

 

“Australia has infrastructure in place or under construction to support exports until 2017, but beyond 2017 much more infrastructure will be required, much of which is still being planned.”

 

“Expansions to port and rail infrastructure will be needed to support increased coal exports from the Hunter Valley in New South Wales and the Bowen, Surat and Galilee Basins in Queensland, while the Pilbara in Western Australia is expected to remain Australia's dominant iron ore region.

 

"The growth in Australia's LNG exports over the next decade and beyond will be supported by projects in Gladstone, the Pilbara and Darwin.

 

"In order for substantial investments to be made to expand Australia's infrastructure it is imperative that all tiers of government continue to work together with industry to ensure infrastructure is in place, on time, and within budget."

 

The outlook found:

  • Based on scenario analysis, Australia's exports to 2025 for thermal coal could increase to between 267 and 383 million tonnes, to between 260 to 306 million tonnes for metallurgical coal, 885 to 1082 million tonnes for iron ore, and 86 to 130 million tonnes for LNG; and
  • Projected export growth represents a potential volume increase from 2011 to 2025 of between 119 to 235 million tonnes for thermal coal, 127 to 172 million tonnes for metallurgical coal, 446 to 643 million tonnes for iron ore, and 67 to 111 million tonnes for LNG.

 

The report is available at: www.bree.gov.au