A $13-million sky rail track at Flinders University in Adelaide's south has been proposed by former head of the South Australian Transport Department Rod Hook.

Key points: Private investors to fund 500-metre demonstration track

Private investors to fund 500-metre demonstration track Sky rail to link car parks with university hub

Sky rail to link car parks with university hub Contractors Federation calls for more private investment

Mr Hook was sacked from the department in 2014 but now runs his own business.

He said he had had enough interest from private investors to fund 500 metres of a sky rail demonstration track and wanted to start building it by the end of the year.

"It links the lower level car parks for Flinders University with the Bedford Park main hub at the University," he said.

"It's an opportunity for private sector or governments in Australia to see whether this presents a more practical transport solution than other alternatives, like trains or light rail.

"It [The infrastructure] doesn't further congest roads and doesn't alienate land."

The sky rail would complement the extension of the Tonsley train line to Flinders Medical Centre, which received a funding commitment from the Federal Government last week during a visit from Prime Minister Malcolm Turnbull.

Mr Hook said he wanted to demonstrate that sky rail infrastructure could be built at 60 per cent of the cost of a tram network.

"That's the advice that we've got," he said.

"But I need to be able to ensure that we can build with Australian construction under Australian conditions and prove that it's cost effective, relative to other options.

"We're hoping we can get our necessary approvals, get the necessary funds together and have construction underway by the end of the year."

The concept will be revealed at the Civil Contractors Federation of South Australia (CCFSA) conference in Adelaide today, with 200 delegates from the industry due to attend.

Rod Hooks claims sky rails can be built at 60 per cent the cost of trams. ( Supplied )

Private investment 'necessary' for infrastructure

CCFSA chief executive officer Phil Sutherland said infrastructure projects backed by private investors needed to become more common in SA.

He said introducing tolls or other measures to raise funds for infrastructure development may become a necessity for the "cash-strapped" Government.

"The State Government do understand the great economic stimulus power of investing in transport and other infrastructure," Mr Sutherland said.

"But you need the money and it's no secret that the Government is cash-strapped.

"South Australia is the only state in Australia where there is no private component to investment in transport infrastructure, and while it [the Government] may not be happy about tolls, there are other forms of funding infrastructure that they really need to have a look at.

"I think the grim reality is they'll have no choice going forward."

The State Government has previously said it would not support the introduction of tolls.