Private contractors to take over all SA road maintainence, in State Government bid to get bang for buck, unlock new projects

Private contractors will come in to deliver all of SA’s road maintenance, with one company winning $420 million worth of roadworks in metropolitan Adelaide and regional SA.

Transport Minister Stephan Knoll will on Tuesday reveal that new contracts have been awarded for the repairs of SA’s 23,000km road network.

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All State Government road maintenance will be outsourced to private contractors, in a move it says will achieve a better price for taxpayers and allow spending on more projects.

Transport Minister Stephan Knoll has revealed new contracts across four zones have been awarded for repairs to SA’s 23,000km road network.

The contracts will result in private companies taking over work which traditionally has been undertaken by the Department of Planning, Transport and Infrastructure (DPTI).

One multinational company, Downer, has been awarded a contract worth $420 million to maintain roads across metropolitan Adelaide and in regional areas north of the city.

The company was heavily involved in the construction of the $867 million Northern Connector, a six-lane motorway from Wingfield to Virginia built from concrete.

Roadworks south of Adelaide will be managed by Fulton Hogan while a joint venture between Lendlease and Boral will oversee the Outback, where sealing of the Strezelecki Track is underway.

The decision is likely to revive a political battle with Labor over privatisation, as Mr Knoll pushes ahead with plans to outsource the operation of the passenger tram and train networks.

Mr Knoll said the contracts “allow us to leverage the expertise and efficiency of industry to deliver better and safer roads for South Australian motorists”.

“Our priority is keeping our roads as safe as possible for motorists,” he said.

“These companies are experts in road maintenance and employ thousands of South Australians, either under existing contacts or on past projects.”

Mr Knoll said the contracts included key performance indicators to target and monitor the use of small and medium-sized local companies.

Mr Knoll said there would be financial penalties for not meeting required standards.

“Through these new contracts we have been able to get a better bargain for taxpayers to drive their dollar further.”

Mr Knoll said the former Labor Government had issued contracts to the same companies, and engaged in the outsourcing of road maintenance when in power.

Downer chief executive Grant Fenn said the company’s contract with DPTI would make it responsible for maintaining 8300km of metropolitan and regional roads.

“Downer has been maintaining South Australian roads since 2003,” he said.

“Overall, Downer will deliver reliable road networks to ensure efficient and safe journeys and also provide opportunities for local service providers and suppliers.”

Mr Fenn said Downer employed 3000 people in South Australia, providing engineering, maintenance, asset management and hospitality services.