Transport and Main Roads Minister Scott Emerson said the department expected to launch the procurement process for long-term contracts for major roads in southeast Queensland by the end of this week.
“Firms will register their interest in three, five-year contracts to be called in coming months,” Emerson said.
“Previously work on major arterials in southeast Queensland was delivered under three separate streams – routine, programmed and rehabilitation.
“By combining this work and delivering it in an integrated fashion we expect to see better outcomes for Queensland roads and motorists across the Gold Coast, Brisbane and Sunshine Coast regions.”
Changes to RoadTek were announced in June. The government said its arrangement with the commercial entity stopped being sustainable.
Roadtek is a government subsidiary, contracted by the government itself, for road and bridge construction and maintenance across Queensland.
It is in direct competition with the private sector when tendering for projects.
The announced reforms are expected to end the taxpayer-funded RoadTek competing with the private sector for work in contested markets – such as southeast Queensland – saving the government 10-20% in costs.
The government’s withdrawal from road construction will also allow it to shy away from high costs attached to road and transport infrastructure.
According to the ABS, the cost to deliver transport infrastructure since 1999 has grown at a much faster rate in Queensland than the national average – 79% compared to 69%.
However, Emerson said RoadTek would still play an important role in regional and remote areas where competition against the private secotr isn’t as strong.
According to the Sunshine Coast Daily, stripping the $450 million in asset management contracts from Roadtek’s road maintenance division in south-east Queensland means about 200 Roadtek workers will have to relocate.
Emerson said the process was already underway.
“The department met with RoadTek staff last Thursday to discuss the transition arrangement for roadwork later this year, as well as our preference to relocate affected workers to areas where there are currently vacant positions within RoadTek and the department.”
