The Next Chapter for Rail: From Megaprojects to Maintenance and Skills
Preparing Australia’s Rail Workforce for a Future Beyond Construction
The infrastructure investment boom has dramatically transformed Australia’s rail sector. Over the past decade, we’ve seen extraordinary progress-from expanding metro networks to constructing major freight and regional rail projects. As I shared during my keynote at the ARA People and Culture Conference, we are now entering a new chapter that demands a sharper focus on people, skills, and long-term workforce sustainability in the rail industry.
The scale of recent investment in rail has been extraordinary. In FY25 alone, we’re forecasting $15.9 billion in rail construction activity. Yet after years of rapid growth, we’re seeing signs of stabilisation. Major projects like Sydney Metro, the Cross River Rail project, and Melbourne’s Suburban Rail Loop will reshape our cities. However, they also highlight a growing challenge: delivering world-class rail infrastructure with a workforce under increasing pressure and a critical need for specialised skills.
As construction activity plateaus, the demand for skills is shifting from project delivery to operational maintenance. This transition opens opportunities to build a more stable, regionally distributed rail workforce, but it also requires a new set of capabilities. Operational maintenance and systems roles demand advanced skills in diagnostics, technology, and customer interface—areas where skills gaps are already emerging.
Meanwhile, competition for talent in rail is intensifying. Sectors like electricity, water, defence, and data centres are expanding rapidly, pulling from the same pool of engineers, technicians, and project managers. Employers in the rail sector can no longer assume that people will join by default. A clear and compelling case-not just about the purpose and public value of rail, but about the diverse career pathways and the importance of skills in areas like operational maintenance-is now essential.
Our research makes it clear: this is not just a short-term supply challenge. It is a strategic imperative. Without sustained focus on attraction, development, and retention of skills, the rail sector risks delivery delays, cost overruns, and lost capability. Investing in training, aligning education with industry needs, and creating flexibility so skills can move across projects and geographies is critical for success.
It’s also about telling a compelling story-one that speaks to a new generation of workers. A career in rail is no longer just about construction; it’s about digital systems, automation, customer experience, climate resilience, and especially operational maintenance. Framing rail as a future-ready sector—innovative, dynamic, and full of purpose-is more important than ever.
The good news is that the foundations are strong. Commitment from industry, government, and associations like the ARA is unwavering. Now, the task is to ensure the rail workforce, with the right skills and focus on operational maintenance, is just as future-ready as the infrastructure we’re building-with flagship projects like the Cross River Rail project leading the way.
Authors
Adrian Hart
Head of Construction & Infrastructure Consulting, OE Australia
Adrian Hart
Head of Construction & Infrastructure Consulting, OE Australia
Sydney, Australia
Adrian has over 23 years of economic analysis and consulting experience with Oxford Economics Australia, focusing on the infrastructure, building, maintenance and mining industries. Adrian has undertaken a wide range of consultancy projects for the public and private sector based on his detailed understanding of construction, mining and maintenance markets, their drivers and outlooks, the range of organisations operating in this space and the issues they face.
This work includes deeper industry liaison, contractor and competitive analysis, pipeline analysis, demand and cost escalation forecasting, and industry capacity and capability projects for the public and private sector. He is the lead author of major reports but also undertakes briefings and workshops for senior management, board members and industry associations, leads in-depth stakeholder consultation, and facilitates and chairs roundtables between government and industry.
Kristian Kolding
Head of Consulting, OE Australia
Kristian Kolding
Head of Consulting, OE Australia
Sydney, Australia
Kristian leads Oxford Economics Australia’s Consulting team, working with public and private sector leaders to help them prepare for the future by applying relevant economic theory and forecasts to inform effective policy and business strategy development.