Auckland tunnel projects face ‘critical’ cost and skills challenges
5 November 2021Global shortages in skills and materials, and the continuing impacts from the pandemic are causing major cost increases and delays to two of Auckland’s biggest tunnelling projects.
In an effort to offset the effects of the pandemic, governments worldwide are pumping money into infrastructure projects but this is squeezing the availability of labour globally.
Work on Watercare’s 14.7km-long Central Interceptor sewer tunnel was due to be completed in 2025. This is now in doubt given the potential impact that skills shortages could have on the US$850m project. According to the New Zealand Herald, Watercare has warned that sourcing and retaining staff “is becoming more challenging and now presents a critical risk to the project”.
Similar challenges are being faced by the US$3.1bn City Rail Link which has needed to source overseas labour for skills not available in New Zealand. Covid 19 has aggravated difficulties across the board in hiring and retaining staff, ranging from engineers and mechanics to steel fixers and crane drivers.
New Zealand’s construction sector continues to be disrupted by Covid-19. Staff recruitment and retention is exacerbated by stiff competition from Australia which can offer higher salaries and currently has less stringent immigration rules. Furthermore, both projects are seeing pressures from global supply chains which are reducing the availability of building materials. Many predict the combination of these factors will result in double-digit increases in the cost of infrastructure projects.
