Six Crucial Infrastructure Projects of 2025

Significant infrastructure projects continue to make their mark on the Australian economy and construction sector, with a number of big ticket projects either under way or slated to begin this year. Transport sector developments head the list, including signs the long-discussed High Speed Rail network may yet see the light of day, as well as a vital communications link between Australia and the rest of the world. Here are six projects among those most to impact the development sector across 2025. High Speed Rail After decades of proposals and little to no action, there have been signs of life for the High Speed Rail project. The Federal Government’s infrastructure project review in late 2023 included the creation of a business case for high speed rail surviving the cut. It then went on to set up the High Speed Rail Authority, tasking it with investigating a high speed rail link in the first instance between Newcastle and Sydney. “We’re doing the geotechnical work at the moment to really look at that—I’ll have a business case before me,” Federal infrastructure minister Catherine King told media in December. King said the extension of high speed rail to other destinations would be part of future investment decisions by the federal government but warned it was not simple. “You’ve also got to remember that high speed rail is not just about faster rail,” King said. “It is actually about developing economic zones outside of your CBDs. “Our effort is to look at where we think it is the most economically viable at the moment in terms of population density.” Inland Rail One of the biggest infrastructure projects undertaken in Australia, the construction of a freight rail line from Queensland to Victoria capable of carrying double-stacked containers is under way. Contracts have been awarded and work begun on segments of the line in Victoria while in NSW and Queensland contracts have been signed and in some case work is under way. Predicted development hotspots on the route include key hubs such as the Beveridge Intermodal Freight Terminal in Victoria as well as the regional centre designated as the main hub of the line: Parkes in NSW, where the line diverts to meet existing rail lines and connections to SA and WA. Suburban Rail Loop, Victoria One of Victoria’s largest infrastructure projects yet, the Suburban Rail Loop (SRL) came into question after it was revealed a treasury advance was secured for it. In early December, King confirmed that her office was assessing a report prior to releasing a promised $2.2 billion for the project that in early 2024 was estimated to cost $216.7 billion to build and operate the entire project to 2084, and $34.5 billion just to build the 26km East section. “We’ve made the election commitment, but of course, we want to make sure that every dollar of taxpayers’ money is being spent properly,” King said. The SRL will also connect to the Melbourne Airport Link. A report has also recommended that Melbourne Airport present a business case for an underground station and that the traffic management be reassessed. Northern Water This colossoal project is now past its halfway mark with an initial completion date of 2028. It is a project of two parts : a 260ML seawater desalination plant using water from the Spencer Gulf, and a 600km pipeline network piping water to South Australia’s northern regions. Several private companies will work with the South Australian government as the pipeline is expected to provide water for agriculture, copper mining and other projects including green hydrogen and steel as well as housing. It will be mostly underground and is expected to be part of the state’s attempt to achieve net-zero targets. GHD has won the bid for technical advisor with contracts to design and build it between 2025 and 2030. Tenders have been called for an operator to run and maintain it from 2028 to 2048. The SA Government has so far provided $10 million against the Federal Government’s $5 million. It announced in June of last year that the feasibility assessment had been allocated $78 million in the 2024-25 state Budget and would be completed in June of 2026. Aerotropolis The newest city in NSW is progressing quickly. In July last year it was announced that 80 per cent of the construction work for the new Western Sydney Airport had been completed. Flights are scheduled to begin in 2026. Meanwhile, the Bradfield City Masterplan was approved in September, 2024 and the overall Aerotropolis Masterplan amended to reflect the Bradfield City Masterplan changes. The exhibition period for the IPG Badgerys Creek Masterplan has ended and will, once approved, provide an idea of what sort of development is needed in the area. Sun Cable In August of last year, the Grok Ventures-led consortium at Sun Cable won planning approval from the Federal Government for the Australian end of the Australia-Asia Power Link project. The project will deliver 6gW of electricity to Darwin and Singapore via a 4300km subsea power cable from a mammoth solar farm project in the Northern Territory. In October 2024, Sun Cable announced it had received planning approval from Singapore for that end of the project. There will be two stages of development for the project, which has been predicted to spawn opportunities in the data centre and advanced manufacturing sector to create green industrial development projects in the Northern Territory. It is expected to generate more than $20 billion for the NT economy during construction and the first 35 years of operation. It is also expected to create 6800 direct and indirect jobs each year in the NT. A final investment decision is due in 2027.

Six Crucial Infrastructure Projects of 2025

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