05 Nov Western Sydney Aerotropolis – How South Korean expertise could power Sydney’s big take off by PwC
Sydney is already Australia’s largest city and it is about become a whole lot bigger. Current estimates suggest its population of 4.7 million will almost double by 2056. To prepare for this, the Australian government has a visionary program of infrastructure projects underway – and one of the most exciting is the Western Sydney Aerotropolis.
Over the next decade, AU$100 billion will be invested in the creation of the Western Sydney Airport and Aerotropolis (collectively known as the Western Sydney Aerotropolis). This presents a range of opportunities for South Korean organisations, given their impressive track record in similar projects.
The demand for flights in the Sydney region is forecast to double over the next 20 years and Sydney’s existing airport (Kingsford Smith) cannot meet this demand alone. Western Sydney Airport will open in 2026 as a 24-hour international airport. The Aerotropolis and surrounding precincts are expected to create 200,000 new jobs in the region by 2036.
Beyond the obvious boost for infrastructure and construction businesses, the Western Sydney Aerotropolis project also offers opportunities for many other sectors, including:
- Aerospace and defence
- Health, research and advanced manufacturing
- Food and agribusiness
- Freight and logistics
- Tourism and visitation.
The Government of New South Wales has already entered into Memorandums of Understanding with major project partners, including Northrop Grumman (US), Mitsubishi Heavy Industries (Japan), Hitachi (Japan), Sumitomo Mitsui Financial Group (Japan), and others. More are sure to follow.
Huge opportunities for South Korean businesses
In 2001, South Korea opened Incheon International Airport in Seoul. From 2005, it was rated the best airport worldwide for 11 consecutive years. Near the airport, Korea also launched the new smart city called Songdo International Business District (Songdo IBD), which will be fully completed in 2020. Songdo IBD was designed and created to be a ‘ubiquitous city’ (or smart city) with eco-friendly practices incorporated throughout. As part of a free economic zone, the city is expected to be a global business hub, allowing easy access to one of the world’s largest and busiest airports.
South Korean construction companies are widely admired for their role in Songdo IBD, as well as notable skyscraper projects and urban developments including the Burj Khalifa in Dubai (by Samsung C&T), Marina Bay Sands hotel in Singapore (by Ssangyong E&C), Petronas Twin Towers in Kuala Lumpar (by Daewoo E&C) and many others.
These projects demonstrate that South Korean organisations have abundant experience and expertise to play an integral part in the Western Sydney Aerotropolis project.
PwC in the Western Sydney Aerotropolis
PwC is working on a number of significant advisory mandates across our diverse range of services in and around the Western Sydney Aerotropolis. Our clients include government agencies, private landowners and investors, institution property trusts, corporate entities, educational institutions, etc. PwC provides a multi-disciplinary approach, which allows us to deliver an integrated service across every stage of projects.
Contact us to find out about the opportunities to be get involved in the Western Sydney Aerotropolis project.
Andrew Parker, Partner, Asia Practice Leader
Direct: +61 2 8266 0218
Paul Yoo, Korean Service Desk Leader, Assurance
Direct: +61 (2) 8266 3998
Michael Bacik, Associate Director, Infrastructure specialist
Direct: +61 2 8266 1460