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Value of Road & Rail Construction Output 2002-2013 (£ billion)
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The sector creating the
most significant growth in construction output over the next few
years is infrastructure, which is forecast to grow at around 5-10%
per year, continuing the resurgence begun in 2008. The
infrastructure sector is therefore forecast to be one of the
strongest drivers of new work output growth over the next 4-5 years
as work begins on some significant expansion and refurbishment
projects. There is a wealth of large transport infrastructure
projects in the pipeline, many of which are timed to be completed,
at least in part, in time for the start of the Olympic Games in
July 2012, including works on the Olympic Park, the East London
Line Extension and the Docklands Light Railway (DLR) Extension.
Over the past decade,
the government has delivered £150 bn investment in transport – over
£13 bn alone in 2008-09, as well as bringing forward £1bn under the
PBR. In the roads sector, total spending is likely to remain
relatively stable between 2008 and 2012, with major improvements to
the roads network. Roads are still expected to be the dominant
sector in the infrastructure market, accounting for around 28% over
the next few years. Projected capital expenditure in the highways
sector is expected to be around £22bn between 2008 and 2012, with
peak funding around 2011; this is expected to translate into steady
growth in road construction output over the period, which will
begin to slow from 2012 onwards to reach almost £3bn by 2013.
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The Highways Agency Programme
of Major Schemes (formerly known as Targeted Programme of Improvement),
which comprises 113 schemes costing more than £5m, is designed to improve
England's major trunk roads and motorways through the building of new
roads and improving and widening existing ones. The Programme, which is
managed by the Highways Agency, is running to 2021.
In the rail sector, Network
Rail has published its Strategic Business Plan for Control Period 4
(CP4), which will run from 1st April 2009 until 31st March 2014. The
Office of Rail Regulation (ORR) has determined that Network Rail will
need an income of around £26.7bn in the five years from 2009 to 2014 in
order to operate, maintain and renew the railway network and deliver all
required improvements.
The Olympic Delivery Authority
is investing more than £500m to develop and deliver transport facilities
needed for the 2012 Olympic Games, which will also support the community
after 2012. This investment is part of an estimated £17bn that will be
spent upgrading London’s transport system, as part of a long-established
programme of renewal and development currently taking place in the
Capital.
The government’s review of the
regulatory framework for the UK airports sector, which will report early
in 2009, will aim to ensure airport operators are helped to deliver the
necessary investment in new airport capacity. Aviation is a major UK
industry, carrying over 238m passengers a year, 2.4m flights and over
2.1m tonnes of freight. Passenger growth has been approximately 5% per
annum for the past decade, but 2008 recorded the first year for a decade
where passenger numbers were down overall (-1.8%) on the previous year.
The demand for air travel is set to increase in the future, but UK
airports currently operate at near full capacity.
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