Consultant claims road and rail costs can be slashed

Grant Prior 12 years ago
Share

Management consultants at McKinsey believe an extra £50bn can be saved in the UK over the next 20 years by improving the efficiency of road and rail construction.

The claim comes as the firm said the the UK will have to spend at least £350bn on renewing and expanding its transport infrastructure over the next two decades to ensure maximum economic growth.

Kevin Sneader, UK managing partner at McKinsey, said: “Contrary to the prevailing economic gloom, we judge the prospects for long-term economic growth to be strong–provided that bold action is taken to remove key barriers.

“We believe that it is critical to move on from today’s necessary focus on the UK’s short-term fiscal position.”

The McKinsey plan represents a 45% increase on the average spent between 2000 and 2009 just as public spending is being slashed.

The consultants said without changes to the management of transport projects and charges imposed on the users of the transport network, total investment would be £100bn less than the minimum required.

But it said that half of that could be saved if road and railway construction were better managed.

The report states: “Our research estimates that almost £50 billion of the shortfall can be delivered by improving the efficiency of construction.

“Our experience working with infrastructure owners around the world suggests that materials expenditure can almost certainly be reduced by 12-14% while front line labour can often be reduced by around 20%.”

McKinsey said the remaining £50bn would have to come from extra charges for road and rail users.”

One civil engineer told the Enquirer: “It’s good to hear someone saying we need to invest in transport but a bit rich to be lectured about cost-cutting by people who cost so much to point out the obvious.”

Latest news

Investment giant buys Bristol M&E contractor

RDCP Infrastructure acquires Avon Combined Electrical Services
8 mins ago

Demolition start for £50m Farnworth town centre rebuild

Caddick Construction is tipped for main works due to start in the spring
47 mins ago

L&G Modular strikes deal to build 1,000 affordable homes

Modular homes business teams up with Hampshire's Vivid housing association
49 mins ago

Former Erith operations director joins John F Hunt

Scott Exell named new operations director at demolition specialist John F Hunt
8 hours ago

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
16 hours ago

Mace hits 1m tonnes carbon saving target for clients

Present work pipeline betters 2026 carbon emission saving target
12 hours ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
1 day ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
1 day ago

Mount Anvil to start 900-home North London estate rebuild

Planning approval paves way for Barnsbury Estate rebuild in Islington
1 day ago

Green light for major laboratory campus in Cambridge

Developer BioMed to tender first building on 600,000 sq ft lab complex in the New Year
1 day ago

Belfast firm signs the biggest work deal yet under Project Gigabit

Fibrus to hook-up rural Cumbria to lightning-fast broadband under £108m deal
24 hours ago

McLaren wins Leeds logistics park contract

Work to start imminently on warehouse complex for Firethorn Trust
2 days ago

Work restarts on £683m waste power plant after site death

Construction suspended for a week of investigations following fatality
2 days ago

Demolition starts on £135m Wigan Galleries scheme

Contractor BCEGI starts work on project to redevelop Wigan town centre
2 days ago

Amey CEO to step down following private equity buyout

Amanda Fisher to leave once business is transferred to new owners
2 days ago

New body set up to vet plant operator card schemes

Contractor trades bodies unite to tackle competency concerns over plant operator skills cards
2 days ago

Kier leads switch to hybrid battery generators

Battery units work alongside smaller generators cutting run times by nearly 60%
2 days ago

Plans in for first Leeds co-living scheme

Watkin Jones submits plan to convert old Direct Line HQ into 230 studio flats
2 days ago

Demolition worker crushed by excavator

Court hears 20-year-old woman was left with "life changing injuries"
3 days ago

Government pays £700m for 50% stake in Sizewell C

New body, Great British Nuclear, will be set up to develop pipeline of nuclear projects
3 days ago

Costain wins Heathrow Airport asset renewal deal

Firm takes early contractor involvement role in Terminal 2 baggage handling upgrade
3 days ago

Worker killed on £683m waste power plant site

Fatal collision involving heavy goods vehicle on giant north London site
3 days ago

HS2 JV shifts four Wembley Stadiums of earth in record time

EKFB team digs and hauls 15 million cu m of muck in 20 months
3 days ago

Milestone wins £300m Wiltshire highways upkeep

Ringway will hand over to Milestone in March next year
3 days ago

Low-risk business model helps Renew post record results

Renew reveals latest acquisition with £15.6m purchase of water specialist Enisca
3 days ago

London Albert Embankment hotel towers approved

Two separate hotels rising to 26 and 29 storeys approved
3 days ago

Keltbray names new director of strategic engineering

Tim Lohmann takes up newly-formed role to drive innovative engineering solutions
3 days ago

Go-ahead for £200m lithium refinery on Teesside

Work to start next year on Europe's first lithium hydroxide processing plant
4 days ago

HS2 agency workers paid the wrong wages

Payroll software problems leave workers out of pocket
4 days ago

Electric car whizz joins O’Rourke

Contractor looking to learn tech lessons from other sectors
4 days ago

Contractor services