In conversation with Mark Southwell, AECOM Executive Vice-President, Global Business Line Chief Executive, Transportation and Ray Rawlings, AECOM Australia and New Zealand Industry Director and Major Projects, Transport
As Australia and New Zealand navigate the shift in transport infrastructure delivery shaped by changing investment patterns, evolving client expectations and the urgent need for cost certainty, our Global Chief Executive for Transportation, Mark Southwell and Transport Industry Director in Australia and New Zealand, Ray Rawlings, discuss how we’re addressing these challenges and delivering positive impacts for local communities.
Ray: Mark, could you share your overall observations from your visit to Australia and New Zealand?
Mark: I’ve visited some truly world-class projects underway here – the Western Harbour Tunnel in Sydney, Melbourne’s Metro Tunnel and City Rail Link in Auckland, where I was fortunate to learn more about New Zealand’s rich Māori heritage and how this is woven into the very fabric of projects that we are delivering. The energy and commitment of the people behind these projects were really fulfilling to see.
I’ve discussed several challenges with clients and industry leaders while I’ve been over here… the budget constraints, construction productivity, delivery risk and capability gaps are those we see worldwide. This presents an opportunity to share solutions across borders. Programmatic thinking, collaborative delivery and a design-to-cost mindset will help address these challenges, all while navigating the pipeline shift away from the mega-projects of the past 15 years.
Ray: We’ve seen the UK experience a slowdown in its transportation infrastructure investment. What lessons can we learn, or outcomes should we expect in the Australian and New Zealand market?
Mark: The slowdown in transport infrastructure in the UK offers a timely reflection point. With the UK generally being a few steps ahead of what then tends to happen in the Australia and New Zealand market, you’re starting to experience that recalibration here too. But this isn’t a retreat…it’s a redirection.
The infrastructure sector must broaden its lens. The skills developed in transport, particularly linear infrastructure, are highly transferable. For example, the energy transition presents a compelling opportunity to apply these capabilities in new ways. In the Australia and New Zealand, we’re already exploring how our major project delivery experience can support the green economy.
Equally important is the shift toward local delivery. While mega-projects have dominated headlines, the future lies in a balanced portfolio that includes smaller, high-volume projects delivered in partnership with local councils and government agencies. These projects may be modest in scale, but their impact on communities is profound.
Ray: Let’s touch on the mega stuff quickly. High-speed rail… is Australia ready? What models have been successful globally?
Mark: High-speed rail is once again a topic of national conversation in Australia. But as we’ve seen globally, success depends on context.
There’s no universal blueprint. What works in Spain or the UK won’t necessarily work in Australia. However, high-speed rail remains a proven and successful form of transportation that can help grow and connect economies of any country where it operates. In countries like Australia and the US, high-speed rail is most effective when it competes directly with air travel, connecting cities over distances where rail can offer a viable, sustainable alternative.
The delivery model must be tailored. Whether through a delivery partner approach or a systems-based structure, the goal is to bring together the right expertise and governance to deliver long-term value. AECOM’s experience in diverse and unique regions, spanning California to Madrid, means we’re well placed to shape the right solution for Australia.
Ray: What role has digital played in transportation innovation? Are you seeing the adoption of digital technology to drive efficiencies and value for money?
Mark: The levels of maturity and focus of digital technology varies across the globe. There’s a concentrated effort in Australia and New Zealand to bridge the gap between the capital build phase and the operations and maintenance phase; hence, digital requirements are increasing.
With digital models and technical drawings increasingly automated, workflows, effective clash detection, and data delivery are all more efficient, reducing both cost and risk. What stood out here was seeing these models integrated into gaming engines to help close the disconnect between those who build infrastructure and those who must run and maintain it afterwards.
With this technology, stakeholders that range from maintenance engineers to people with disabilities could virtually walk, drive, or fly through designs, gaining firsthand experience of roadways, bridges, and the broader urban landscape. The commitment to digital workflows here goes beyond standard delivery, and we’re now achieving greater efficiency by connecting every part of the process and optimising project delivery from start to finish.
Ray: We’ve seen NEC4 [New Engineering Contract 4] contracts, which are widely adopted in the UK, becoming increasingly prevalent in Australia, and gaining traction in New Zealand. What can we learn about this model?
Mark: The NEC4 contract model shows us how a well-designed structure can support collaboration.
NEC4 simplifies language and focuses on early risk identification and joint problem-solving. It’s not about protecting positions; it’s about delivering outcomes. It encourages all parties to identify risks early, assess impacts and co-create solutions.
This approach aligns naturally with how people in Australia and New Zealand want to work; openly, constructively and with a shared purpose. It’s a model that supports not just better projects, but better partnerships.
Ray: As you know, budget constraints and cost escalations are one of our biggest challenges. How can we implement AECOM’s learnings from around the world?
Mark: With governments under pressure to do more with less, cost certainty has become a global imperative. The industry must respond with discipline and innovation.
Continuing to design everything from scratch isn’t sustainable. Embracing repeatability, modularity and design for manufacture and assembly offers practical pathways to improved productivity. These are not just buzzwords; they’re levers for change.
Clients are ready for this shift. They want solutions that are affordable, scalable, and deliverable. We can lead these conversations, bringing forward ideas that reduce costs, increase certainty, and deliver better outcomes. Because this is a global challenge, we’re in a position to leverage our global network, connecting people, ideas and capabilities to solve it.