CEO of construction firm Heijmans calls for more government investment in infrastructure
The Netherlands faces a growing maintenance backlog for its roads, bridges, and viaducts, exceeding available funding levels. Ton Hillen, CEO of construction firm Heijmans, warned Friday that without additional government investment, the country risks serious infrastructure disruptions. The caution comes as Heijmans released its half-year financial results.
Hillen refers to a recent multi-year plan from Rijkswaterstaat that already outlined the severity of the situation. Dozens of bridges, viaducts, and locks cannot be repaired after 2028 if the Cabinet does not quickly allocate extra funds. “That is worrying,” said Hillen, who also pointed to the commitments to increase defense spending. “For that, the underlying road network must be in good condition.”
More money for infrastructure would of course also be good for Heijmans, Hillen admitted. Heijmans already works extensively on roads and other infrastructure. Hillen believes it is possible to scale up these activities if more budget becomes available.
What could also help is collective tendering, which is cheaper and faster. “Don’t do it bridge by bridge,” Hillen urged. According to him, many bridges are very similar. “For example, the lanes are equally wide.”
Heijmans advocated, more broadly, for a modular approach, where parts can be produced on a large scale and quickly assembled on site. “Why does every municipality have to redesign roundabouts over and over?” he also asked. “If you work with ten standard designs for roundabouts, a lot of money can be saved.”
The company reports a strong first half-year. Revenue increased by 8 percent to 1.3 billion euros, and profit rose to 59 million euros, up from 37 million euros a year ago. Heijmans also sees reason in the figures to raise its profit margin expectations for this year.
The number of homes sold rose slightly, from 1,587 to 1,634. According to Heijmans, issues such as slow permit issuance and the nitrogen debate continue to weigh on growth. “The nitrogen debate is not currently reducing revenue, but it is causing us to miss out on growth opportunities.”
Hillen thinks the government’s target of 100,000 new homes per year will not be met this year either. He hopes a next Cabinet will come up with solutions and “not be too preoccupied with party politics.”
Reporting by ANP
