New mega projects such as the new MRT Cross Island Line, the North-South Corridor expressway, Changi Airport Terminal 5, and Tuas Mega Port project will drive the local construction industry for the next decade.
Singapore’s construction sector is expected to grow by 3.3 percent on average from 2019 to 2028, driven mainly by various transport mega projects, according to a recent report from Fitch Solutions.
For instance, the MRT network will undergo further expansion over the next decade due to the government’s vision that at least 80 percent of all households here should be within a 10-minute walk to a train station.
The expansion involves the construction of two new rail lines – the fully elevated 24km Jurong Region Line and the fully underground 50km Cross Island Line, which will connect Singapore’s Changi Airport and the planned High Speed Rail (HSR) station in Jurong East.
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“Construction for these projects will be segmented into multiple stages, and construction will commence in 2019, and will be completed progressively from 2026 to 2030. Given the government’s long expertise in planning and execution of metro projects in Singapore, we believe execution will be smooth and delays will be minimal,” the report said.
Moreover, construction is set to start on the 21.5km North-South Corridor expressway, which is touted as Singapore’s biggest road project over the next decade.
“With an estimated value of $8 billion, the expressway will encompass a series of viaducts, at-grade roads and tunnels that will connect residential and industrial estates in the north to the Central Business District (CBD) in the south.”
To strengthen Singapore’s status as a regional aviation hub, the government is also preparing for the construction of the $10 billion Changi Airport Terminal 5, which is projected to increase passenger capacity by 50 million people per annum.
“Works relating to land reclamation and the construction of a third runway are currently underway and construction of the new terminal and the associated infrastructure is scheduled to begin from 2020,” noted Fitch Solutions.
“In addition, provisions have been made for the extension of the Thomson-East Coast and Cross Island Lines to connect to the new terminal, and we expect detailed plans regarding these rail projects to be announced in a few years’ time.”
Furthermore, the ongoing Tuas Mega Port project is expected to boost Singapore’s reputation as a vital transhipment hub in the world, it added.
Expected to be operational by 2026 onwards, the port is being built in four phases, with the first stage already crossing the halfway mark as of 2018. Phase II, which is valued at $1.46 billion, has already been awarded, but Phase III and IV are still under planning. When fully completed, Tuas Mega Port could handle 65 million twenty-foot equivalent units (TEUs), which is more than double Singapore’s overall capacity in 2017.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com