The Australian Ministry of Transport and Infrastructure and U.S. Department of Transportation decided to form a partnership that involves the exchange of information for the improvement of transportation infrastructure, several reports show.
Apart from data, the partnership will also allow both countries to swap ideas on best practices, technologies and investment strategies on transportation. A particular area of interest in the collaboration focuses on public-private partnerships to enhance roads, bridges and other transit systems.
The partnership will serve as a win-win arrangement for the public and private sector. As transportation issues become more pressing, this partnership between Australia and U.S. will be beneficial “in this era of globalisation,” U.S. Transportation Secretary Anthony Foxx said.
Leader in P3
The U.S. Transportation Department recognised Australia as a leader in public-private partnerships for infrastructure projects.
That’s partly because the country serves as the host for several construction equipment suppliers, ranging from the authorised distribution of Caterpillar spare parts to other durable construction machining solutions.
The U.S. agency also acknowledged that P3s are an efficient way of leveraging more private capital to fund transportation infrastructure projects.
The Australia-U.S. partnership also takes place at a favourable time, as American construction industry is expected to grow further in 2017 based on a forecast by the chief economists of the Associated Builders and Contractors, American Institute of Architects and National Association of Home Builders
ABC chief economist Anirban Basu believes that commercial construction spending will further increase in the following year by up to 4%. However, lack of labourers and increasing regulatory costs will hinder the growth of the residential sector, according to NAHB chief economist Robert Dietz.
Still, architecture companies will continue to see continued growth in revenues, which provides a bright outlook for the construction industry over the next 12 to 18 months, AIA Chief Economist, Kermit Baker said.