London — A new report from Timetric’s Construction Intelligence Center (CIC) reveals that the total global value of tunnel-related projects currently tracked stands at a staggering US$1.51 trillion. This investment will equate to over 3,744 km total length of tunnels to be added globally (according to the 62 percent of CIC global projects where this information is known), with European projects accounting for 1,478 km of this total.
The global tunnel projects pipeline is led by Europe with a total pipeline of projects worth US$574.8 billion. Within Europe, the UK dominates tunnel-related project investment with a value of US$198.4 billion, reflecting the UK investment in infrastructure mega projects such as Crossrail and High Speed 2 (HS2).
Asia-Pacific follows Europe with projects valued at US$563.8 billion. This includes the highest value project tracked by CIC, the US$80 billion Fuzhou to Taipei Highway: Taiwan Strait Tunnel. China comes in second to the UK with tunnel projects valued at US$168.6 billion.
The report uncovers that public investment is responsible for the highest proportion of projects at 74 percent, followed by public/private funding at 25 percent and private investment accounting for only 1 percent of funding.
Recent analysis suggests that transport investments in APAC will increase from US$557 billion per year to nearly US$900 billion per year by 2025, reflecting the massive increase in population movement to urban areas and requirements for improved transport links for trade.
The report shows Latin America at the back of the pack, having invested 2.8 percent of GDP in infrastructure, a low level compared with other developing regions, with 7.7 percent of GDP invested by East Asia and the Pacific and 6.9 percent for the Middle East and North Africa in 2014.
In the US, the Trump administration is proposing a US$1 trillion, 10-year infrastructure plan with road, rail and airport infrastructure earmarked for investment. However, the infrastructure plan is dependent on contributions from private investment, which will in turn be influenced by investors’ faith in the new administration delivering this program. The US tunnels project pipeline, as tracked by CIC, currently holds a value of US$149.9 billion.
Project Insight: Global Tunnel Construction Projects is published by Timetric and available at https://www.timetricreports.com/report/cn0052pi–project-insight-global-tunnel-construction-projects.