Hywel Grimmett, Marketing Solutions Manager
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On 1st July, Infrastructure Investor will be publishing a special in-depth report on the Transportation sector (see synopsis below).
Published alongside our Jul/Aug issue, the report will be read by approx. 21,000 relevant practitioners and will also enjoy further exposure via infrastructureinvestor.com.
The report will benefit from a long shelf-life as it circulates at all Infrastructure Investor forums in the 12 months subsequent to publication [Hong Kong and New York in 2019; Berlin, Seoul, Tokyo & Melbourne in 2020].
It will be comprised of a mix of proprietary analysis and insight from Infrastructure Investor’s editorial team alongside sponsored interviews and market commentaries from firms active in the space.
Trade and the movement of people are often correlated to economic activity, making transportation assets a mainstay for institutional investors seeking exposure to GDP-linked infrastructure. While transportation is considered a core infrastructure investment, with low risk and mostly single-digit returns, assets such as roads, railways and airports generate reliably steady cashflows.
For example, the California Public Employees’ Retirement System’s infrastructure portfolio topped $4 billion for the first time, last year, driven by strong returns from assets located abroad and investments tilted toward core infrastructure. Nearly half of these investments – 46 percent – are in the transportation sector.
But technology is also playing a role in the sector’s evolution, as evidenced by the term ‘mobility’ which is used more and more frequently by investors and the industry as a whole, when referring to transportation. The term indicates a more holistic approach to the sector, which both investors and governments are taking in an effort to integrate various modes of transportation into one seamless experience for end-users, reducing traffic congestion and pollution at the same time.
This approach as well as the objectives it aims to achieve imply a change in how various transportation assets will be used in the future.
As futurist Ben Hammersley told delegates at our recent Global Summit in Berlin, “in 20 years’ time all those parking lots will be like weird desert relics of a bygone time”. That statement underscores the fact that, as long-term investors, how you invest in an asset will be as important as what type of asset you’re investing in.
Aside from technology, there are other opportunities emerging in connection with this core sector, such as service provision or leasing, which are also increasingly catching investors’ attention.
It is these developments and others that our editorial team will explore in our upcoming in-depth report dedicated to transportation. Other key topics that will be covered, include:
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