Infrastructure Australia, National Infrastructure Coordinator, Michael Deegan has told CEDA's State of the Nation 2013 that Australia must reform and develop innovative infrastructure policy for productivity.

"We need to approach infrastructure finance and deliver differently, as a nation we need to be creative and we need to be innovative," he said.

"We need to undertake major infrastructure reform to have the infrastructure we need for the future."

In his address, Mr Deegan criticised the public sector's approach to infrastructure innovation and policy. He said the public sector has become inhibitors rather than facilitators and self-imposed barriers exist across infrastructure.

"In the public sector groups continue to exist that put self-interest before reform…. they are stolid, hesitant and reluctant," he said.

Mr Deegan said there are barriers at all levels of government to adequate infrastructure. For example in 2013 Australia has no single picture of the conditions of its existing road systems, rather it is fragmented between states and national bodies.

"Nationally we don't identify road routes," he said.

The high cost of over-bureaucratisation has real consequences for jobs and national productivity, he said.

"The internal conflicts have implications for land transport infrastructure, urban form, economic growth, international reputation and ultimately all of the pillars of sustainable development," he said.

"With a much stronger approach to innovation in policy structure we will prepare ourselves and be ready for the great Asian opportunities that exist."

High costs of shipping and regulation in Australia may also impact on exports says Shadow Minister for Infrastructure and Transport, Warren Truss.

"Many shipping companies raised concerns about the increased red tape and costs," he said.

"Some companies are reporting container rates from Melbourne to Brisbane at almost twice the cost of Singapore to Melbourne."

Mr Truss said new funding models need to be explored.

"The Coalition … will seek to facilitate further investment from the private sector where possible," he said.

National ICT Australia (NICTA), CEO, Professor Hugh Durrant-Whyte said when it comes to infrastructure we have to think more about computers than concrete.

"Information technology fundamentally is what's driving the cost, efficiency, sustainability, scalability of any infrastructure system…in the twenty-first century," he said.

"Information technology and information is what's going to drive future infrastructure, not just the use of existing infrastructure but how we go about designing and using infrastructure in the future.

"It's all about the application of ICT to problems that really affect productivity across the board."

Professor Durrant-Whyte said a simple change in algorithms to the ramp signals of the M1 freeway in Melbourne had made improvements that were equivalent to adding three new lanes.

Read more articles from the 2013 State of the Nation