Infrastructure lag hindering restructure says Colliers

Property firm sees tardy investment coming on stream despite funding hurdles

Infrastructure lag hindering restructure says Colliers
The formerly humble distribution centre is a more exciting place now.


The nation’s lag in freight infrastructure improvement is retarding the pace of post-boom economic development, property company Colliers believes.

And this is occurring just as the remaining profitable manufacturing sectors seek to take advantage of new business conditions.

"A successful industrial sector requires high quality roads, ports and rail," Colliers managing director industrial Malcom Tyson notes.

"If there is insufficient investment, congestion issues emerge and significant pressure on existing infrastructure reduces the liveability of a city.

"In addition, the productivity of our economy reduces." 

He adds that while the need to upgrade infrastructure and for detailed plans to improve road, rail and ports are recognised at all levels of government, the states face major challenges in funding such large-scale projects.

And while manufacturing’s share of the economy continues to decline, high quality control and technologically advanced production techniques make Australia’s products desirable internationally.

The views are contained in the company’s Asia Pacific Property Outlook 2016, which states. "By sector, logistics remains strong across the region, performing well from both an occupier and investment perspective", adding that business and consumer confidence remains on the up.

The report comes fairly hard on the heels of its research and forecast report Evolution of warehouses: How industrial has transformed.

In it, national director research Nerida Conisbee hails the advances and transformation being wrought on warehousing.

"Warehousing has historically been one of the more passive property types however growth in eCommerce and globalisation of logistics have driven innovative changes to internal fit-out requirements.

"This is leading to greater complexities for occupiers and developers.

"Distribution centres are now far more dynamic – goods are moving faster, higher clearances are required and there is greater demand for natural light and better performing slabs.

"Occupiers are changing with third party logistics [3PL] experiencing enormous growth and supermarket groups becoming more sophisticated in how they move goods through their distribution channels.

"Ecommerce providers frequently require specialist internal design and fitout of their warehouses."

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