The way ahead
Transport survey 2016

92 percent of rail and 77 percent of aviation respondents say market conditions are positive
73 percent of all respondents believe passenger numbers and freight volumes will increase in the next five years
67 percent anticipate an increase in investment in technology over the next five years, with low carbon and fuel efficient technology and predictive analytics expected to be the most significant drivers of change
Respondents favour investment in China, India and the US over the next five years.  M&A is seen as the optimal investment opportunity for the transport sector
52 percent of all respondents say that a global recession poses the greatest threat to their industry.
Bank debt will act as the sector’s principal source of funding over the next two years.  The availability of funding for investment, lower oil prices and infrastructure improvements are the main reasons for optimism
Shipping remains the least optimistic industry, which is attributed to overcapacity. Respondents from the road transport industry are most enthused about the opportunity to invest in new technology. Infrastructure investment is viewed as the most helpful form of government support.

Executive summary

The transport sector is anticipating further growth and is primed for consolidation. Over the next five years, China, India and the United States will be key markets for investment. Low carbon technology and predictive analytics are the technologies expected to have the greatest impact on the sector. Infrastructure is viewed as the best investment opportunity and inadequate infrastructure is seen as the greatest challenge to operational efficiency. Bank debt, capital markets and private equity will represent transport businesses’ main sources of funding.

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