Recent results from
the major publicly quoted contractors suggest that the growth in new
infrastructure construction activity has gathered momentum over the summer.
Balfour Beatty,
Morgan Sindall and Costain have all pointed to the growth of construction in
road and rail work as increases in spending take effect and as work gets
underway on national projects such as High Speed 2.
Thanks to an
improving picture in infrastructure and utilities projects, the latest Glenigan
Index suggests the upturn extends across the wider industry. Glenigan
Construction data shows civil engineering starts rose by 15% in the quarter to
August, compared to the period a year ago.
Balfour Beatty
pointed to the strong pipeline of major infrastructure projects in transport
and energy at its interim results in August. The company says that a
combination of High Speed 2, new nuclear power stations at Hinkley Point C and
Wylfa, smart motorways for Highways England and the third runway at Heathrow
airport should help the Government reach its target for infrastructure
investment of 1% of gdp by 2020-21.
Balfour Beatty is
working on the UK’s largest road contract on the A14 widening in Cambs and it
sees good opportunities for growth in the roads sector in the light of the £35
billion of funding for Highways England’s first and second roads strategies. The
firm has recently won a Highways England smart motorway package to upgrade
sections of the M4 (Jcts. 3-12).
Morgan Sindall has
also been busier in the sector. Revenues at its infrastructure business rose by
12% to £320 million in the first half of 2018. Morgan Sindall has an
infrastructure order book worth £1,309 million focused on aviation, highways,
rail, nuclear, energy and water. It is currently working at Heathrow Airport’
Alpha North taxiway as part of the Q6 framework and it has recently completed
work on the A1(M) and on the Edinburgh to Glasgow line for Network Rail.
Costain also sounded
an upbeat note on infrastructure construction prospects when it reported
improved profits and a £3.7 billion order book, with more than 90% of it repeat
business. The company is seeking to carve out a niche for itself as a provider
of ‘smart infrastructure solutions’, using integrated technology. It recently
won a contract for Network Rail to develop new technology to cut accidents at
level crossings which will be rolled out over the next five years.
Costain hopes to
take advantage of trends identified in the recent National Infrastructure
Assessment which envisages nearly all new UK vehicle sales being electric by
2030. It sees so-called ‘connected and autonomous’ vehicles and their enabling
infrastructure as a growing market which could be worth around £11 billion pa
in the UK by 2030.
Tender opportunities
are also likely to be bolstered by political pressure for more investment in
infrastructure. The latest National Infrastructure Assessment also calls for a
national broadband plan, a national network of charging points for electric vehicles
and a boost to funding for major cities of £43 billion over the next 20 years.
Meanwhile, the CBI
has recently called for an increase in local transport funding to prevent some
regions being disadvantaged in a “two speed England” and for the creation of an
infrastructure committee to operate across Whitehall.
Balfour Beatty
recently achieved a major milestone on its Telford Footbridge project, with the
successful installation of a new footbridge over Telford Central railway
station. The project forms part of the major infrastructure upgrade programme
being undertaken by Telford & Wrekin Council.
Balfour Beatty
worked overnight to lift the 240 tonne structure into place, utilising a 230ft
crane to align the bridge with the two new reinforced concrete abutments it is
secured to.
The main span of the
new 90 metre bridge will cross both the A442 Eastern Primary and Rampart Way
dual carriageways, will significantly improving links between the railway
station and Telford shopping centre.
James Corrigan,
Balfour Beatty Project Manager, said: “I am delighted to have successfully
completed the second of two bridge lifts in Telford, while ensuring minimal
disruption to the surrounding road and rail network.
“This crossing
brings together essential parts of the local community and allows the public
much needed upgraded infrastructure. We are looking forward to continuing our
relationship with the council as the project enters its final stages.”
With both bridges
now in place, focus will turn to the demolition of existing structures ahead of
completion early 2019.
