Report: Resource boom will happen amidst insufficient infrastructures in Australia
Existing Australian infrastructure may not be enough to meet the demands of the resource boom expected to happen soon, according to the new report of Access Economics released on Tuesday.
The new study also noted that infrastructure in the country has been consistently progressing but the advancement may prove insufficient in the long run and Access Economics said that the government needs to spur more activities to ensure that the accelerated mining activities will stand on solid ground.
At present, more than $290 billion dollars worth of projects are ongoing and according to Access Economics' Investment Monitor, mining investments are poised to pour additional $486 billion worth of projects geared towards Australia's mining regions, with the bulk of the investments mostly focused on Queensland and Western Australia.
Access Economics' David Rumbens said that heightened mining activities to come would require infrastructure facilities "such as ports, power supply, water supply and transport," and clearly their current numbers would fall short, leaving the government hard-pressed to add more facilities as quick as it can.
Apart from the infrastructure question, Rumbens added that the mining sector could encounter shortage on available skilled workers, a scenario, he stressed, that could lead to higher wages and interest rates movements.
The report said that overseas migration to Australia has been declining since 2008, pointing to the possibility that once the mining boom comes around, skilled workers may be hard to come by.
Also, Rumbens cited the possibility of "further interest rate rises through the year and that will be exacerbated by these wage pressures."