Infrastructure investment opportunities in a Labor government

4d infrastructure sarah shaw

24 May 2022
| By Liam Cormican |
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Investment opportunities are abound in infrastructure, according to 4D Infrastructure, following the swearing-in of the Labor government.

The firm was expecting significant infrastructure investment over the coming decades, with detailed net zero and emission reduction plans presenting long-term investment opportunities within the energy sector, especially in energy supply, security and energy transition.

4D Infrastructure chief executive, Sarah Shaw said: “There are multiple domestic and international listed stocks which have, and will continue to, capitalise on the infrastructure opportunity in Australia.

“We see Transurban, along with other global toll road operators, as a potential partner in future road investment, whether it be through investment in their existing roads, unsolicited investment proposals or future privatisations.

“APA Group and Iberdrola are amongst several listed organisations that have highlighted the opportunity set within the domestic energy sector and are eager to participate and facilitate generation, energy transition, transmission and distribution solutions.”

The below table shows where 4D Infrastructure sees infrastructure spend by the Australian Labor Party:

Infrastructure investment plan

‘plans to invest in roads, rail, ports, and high-speed broadband’

Net-zero emissions target

Yes, 2050

Interim (2030) emissions target

National emissions to be 43% below 2005 levels by 2030

Energy transition to a net-zero budget

Estimated required investment of at least $76 billion by 2030 ($24 billion public sector/ %52 billion private sector)

Energy policy focus

Focused on batteries, solar, hydrogen and carbon abatement

Generation mix

Renewable energy to grow to 82% of total energy generation by 2030

Energy prices

Retail electricity bills are forecast to be $275 p.a lower by 2025 and $379 p.a by 2030

Transport

Planning for about $50 billion in transport projects

Water

Plan to invest $34 million towards establishing a ‘National Water Commission’

Telecommunications

Upped the Coalition’s $480 million commitment by $270 million (total investment of $750 million) and a further $2.4 billion projected to expand the full-fibre National Broadband Network (NBN) access across the country.

Shaw said Increased infrastructure spending was not only occurring in Australia but also broadly around the world.

She said the listed infrastructure sector was also a clear winner from increased public sector spending as investment spending:

  • Boosted economic growth and labour efficiency, which is good for all businesses but especially those infrastructure businesses which form the ‘arteries’ of the economy;
  • Creates potential new opportunities for the private sector to co-invest alongside government or invest in place of governments; and
  • On a longer-term basis, potentially provides a bigger pool of infrastructure privatisation candidates.
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