Tunnel Vision: Digging after the transport boom in Australia

Australia is at the peak of a boom in tunnel work, supported by a record level of transportation construction activity. The pipeline of tunnelling work is set to begin declining as government funding of infrastructure projects slows.

• Tunnel boring uses highly specialised skills and equipment, making boom-bust cycles like this particularly costly. Over the last ten years, several major tunnelling projects have been beset by cost increases, many having more than doubled in cost and with Snowy Hydro 2.0 now estimated to cost 10 times more than its original price tag.

• As the transport boom winds down, overall tunnelling demand will fall, but there are several areas of work which, with appropriate planning could provide a more stable pipeline of work over the next decade or more.

• Underground metro networks in major cities have contributed significantly to the transport boom. NSW has announced potential expansions to the Sydney Metro, while Victoria and Queensland may plan expansions in the late 2030s.

• Pumped hydro also requires significant tunnelling and is necessary for a decarbonised electricity network. Pursuing smaller dams can deliver necessary storage over the coming decades in a more stable pipeline, less vulnerable to major delays and cost increases.

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