GOVERNMENTS must act today to ensure that the infrastructure needed in 2020-2030 will be planned, developed and operational in time, according to a new OECD report released last week.
The report, Strategic Transport Infrastructure Needs to 2030, reveals that air passenger traffic could double, air freight could triple, and port handing of maritime containers worldwide could quadruple by 2030.
However, the report notes that most of the current gateway and corridor infrastructure could not handle even a 50 per cent increase in demand.
The OECD report estimates that $53 trillion of investment (USD), equivalent to an annual 2.5 per cent of global GDP, will be needed to meet demand over the coming decades.
According to the report, upgrading key infrastructure will increase competitiveness, boost trade and promote economic growth.
The report says private-sector investment in strategic transport infrastructure will be essential as the traditional model of public funding for major projects is likely to dry up.
It finds that some countries have begun linking strategic infrastructure planning to long-term infrastructure funds, as is the case in Canada, Denmark, Switzerland and the United Kingdom.
Other countries, including Australia, India and the United States, should improve financing mechanisms to ensure funding is consistent with strategic infrastructure needs, according to the report.