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Home > Industry Event > Transportation & logistics

Transportation needs are growing strongly around the world. Continuing globalization, coupled with high growth rates of population density and GDP in some regions, means that theflow of goods and people will continue to increase over time. Massive investments are being made or planned, posinghuge challenges for all parties involved. Some of the key questions include:

  • Where are the greatest needs for transport infrastructure development in the coming years and decades?
  • What are the most effective ways of financing transport infrastructure? What willbe the roles of the public sector and privateinvestors?
  • How can megacities and economic hotspotsbe appropriately equipped with transport infrastructure while not decoupling ruralareas?
  • Will transport infrastructure continue to be adriver of economic growth?
  • How can transport infrastructure bedeveloped in an environmentally sustainableway?

At INNCH, every year we organize a group of specialists in this sector to bring you more firsthand information and related answers.

Trends in supply & demand

 

Make or break — Transport infrastructure remainsa deciding factor for the economic prospects of acountry.
Transport infrastructure is a pre-requisite for an economy’s success, alongside other competitive criteria, such as educational system, taxation, regulation and crime rate. Recent studies have shown that the ability to deliver integrated transport systems will be a key enabler to realise economic success in the future. Indeed, an efficient transport infrastructure is a crucial prerequisite for local businesses and foreign investorsto operate successfully. Poor transport infrastructure or low public investments increase costs for firms and decrease attractiveness for investors. Studies suggest that transport infrastructure quality has a notable effect on cost levels: improvements in transport infrastructure can directly reduce operating costs in a number of different industries. Researchers have found that an improvement in infrastructure will decrease costs by 11 to 21%, depending on the industry under review.Other findings have shown that an improvement in airport infrastructure from the 25th to the 75th percentile can reduce air transport costs by around 15%.
The important role of transport infrastructure may beeven more critical for emerging markets. While emergingeconomies may be able to offer cost advantages due tolowerlaboror production costs, these effects could easilybe offset by higher transport costs resulting from inadequatetransport infrastructure. Investors planning projects in aparticular country need to assesscarefully the transportinfrastructure available before they can make effective   investment decisions.

We recognize thattransportation & logistics is a complex industry and that many factors will determine its future.

 
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