Transportation
Transport is a crucial driver of economic and social development, bringing opportunities for the poor and enabling economies to be more competitive. Transport infrastructure connects people to jobs, education, and health services; it enables the supply of goods and services around the world; and allows people to interact and generate the knowledge and solutions that foster long-term growth. It’s an essential component of economic growth and the quality of life for countries around the globe.
Although the sector is crucial to reducing poverty, boosting prosperity and achieving the sustainable development goals, transport is also at the heart of critical development challenges such as:
As the developing world rapidly urbanizes, there is an opportunity to build safer, cleaner and more efficient and accessible transport systems that reduce congestion and pollution, facilitate access to jobs and lower transport energy consumption. In emerging mid-size cities, where most of the new urban dwellers will live, city planners have an opportunity to design sustainable and inclusive transport systems from the start, leapfrogging more polluting and costly modes. In older or larger cities, technology and data management is helping better map travel patterns and users’ needs, engaging citizens and improving the quality and efficiency of transport solutions.
Transport infrastructure investment is projected to increase at an average annual rate of about 5% worldwide over the period of 2014 to 2025. Therefore, NAEG believes that having a long term perspective in the transportation sector is crucial, due to the implications of present decisions on future performance and the nature of the investments such as transport infrastructure that require forward planning and making educated decisions on future requirements. Although, there is a positive outlook of a growing market for transport infrastructure worldwide, Asia-Pacific remains the largest transport infrastructure market while Sub-Saharan Africa will continue to be the fastest-growing regional infrastructure market.
Our team believes the key factors to unlocking these transport investment and development opportunities and overcoming the relative challenges are:
Enhanced Project Preparation
If governments and investors are going to deliver good projects and realize positive socio-economic and financial returns; they need to focus on upfront preparation before the project even starts to mitigate key risks associated with a project and its bankability.
Technological Innovation
We believe the global transport sector faces several challenges for which innovation will play an important role. A growing number of technological innovations and cross-border collaborations are also expected to drive strategic investments in different transport sub-sectors, especially roads and railways. Innovations that improve the cost efficiency and productivity of the transport sector help reduce the impact of the current economic situation including the increasing population growth in urban areas.
NAEG is currently focused on investment opportunities and development initiatives in the following sub-sectors of the transportation sector:
For information on specific sub-sector focus, kindly visit the relative section of our website.