INTERNATIONAL COAL NEWS

China could tackle Australian infrastructure shortfalls

IF THE village wants to be rich, then you build a road first.

Vivienne Ryan

This article is 17 years old. Images might not display.

That was the message Chinese Ambassador to Australia Zhang Junsai gave to a packed room of Chinese and Australian business leaders in Perth this week.

 

Pointing towards Australia’s port congestion Zhang said China could play a vital role in alleviating the constraints of its southern neighbour.

 

The ambassador was confident that China and Australia were natural partners in the fields of resources and infrastructure.

 

“China’s need for resources keeps growing and while Australia is rich in resources … I understand it faces infrastructure bottlenecks,” he said.

 

Zhang pointed directly to the Hunter Valley region where ships have been waiting up to weeks at a time to load coal, resulting in hundreds of millions of dollars in demurrage costs.

 

The ambassador was addressing an Australia China Business Council and Chamber of Commerce and Industry Western Australia infrastructure forum, Chinese Support in Project Execution.

 

He touted China’s rapid infrastructure development over the past 30 years as proof it could help Australia.

 

Zhang said China’s infrastructure once lagged far behind developed countries with its first subway built in Beijing in 1971, 108 years after Britain.

 

But after opening up 30 years ago the Chinese government became increasingly aware of the importance of infrastructure.

 

In the past 15 years the length of highways built in China has equalled that built in the US in the past 40 years, on top of its 150 new civil airports.

 

At present China’s investment in infrastructure sits at about $US400 billion per annum and it is estimated to increase to $725 billion in the next three years.

 

The handling volumes of China’s major ports and container handling capacities were number one in the world for the past five successive years so “China’s efforts paid off”, according to Zhang.

 

As China’s hunger for energy continues there could be big advantages if it participates in infrastructure development in Australia, said the ambassador.

 

“It is mutually beneficial for China and Australia to cooperate in infrastructure,” Zhang said.

 

He pointed towards Australia’s benefits in the development of local infrastructure projects, including accelerating its resources sector, increasing local employment and growth of the Australian economy.

 

But engineering construction firm GRD Minproc issued a warning over the joint development of projects between China and Australia.

 

GRD director of development Tom Revy said differences in project delivery and philosophy existed between the two countries.

 

“We need to ensure we are travelling down the same path,” Revy said.

 

“We have a lot to learn from each other in this uncertain time.”

 

Zhang said Chinese–Australian relations at present were in the “best shape” and through the present “fruitful economic cooperation” the future was bright between the two countries.

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