The challenges for transport infrastructure

- Rising demand, constrained financial resources and existing bottlenecks in supply as well as the need for efficient demand management, are challenges that transport infrastructure operators will be facing in the next 20 years, according to a second report in PricewaterhouseCoopers (PwC) "Transportation & Logistics 2030" series, carried out in cooperation with the Supply Chain Management Institute (SMI) of the European Business School (EBS).

Respondents to an underlying Delphi survey of 104 experts in 29 countries, predict that shortages in transport infrastructure will remain until 2030, with expectations that industrialised countries will lead in transport infrastructure provision.

Although emerging markets such as India and Russia currently invest heavily in transport infrastructure, they will not be able to close the gap completely by 2030. The Delphi panel expects that strong regulatory measures such as toll roads or congestion charges will compensate for the increased level of investment in transport infrastructure.

Klaus-Dieter Ruske, PwC’s partner and global transportation and logistics leader opined that gaps in financing are a paramount concern for all levels of infrastructure - local, national or international. The challenge for both the public as well as the private sector will be to identify ways of cooperation and to create the best win-win situation. “Demand will be managed through regulatory measures, such as toll roads and congestion pricing and by matching demand and supply at it most efficient point," he said.

Governments, in both industrialised and emerging countries, are facing enormous challenges in allocating sufficient capital to transport infrastructure investment. Therefore, respondents think that the financing of maintaining existing infrastructure will be more difficult than attracting investment in new infrastructure.

Transport infrastructure is one of the critical success factors for a country's or a region's competitiveness, with the potential to accelerate economic growth and investment opportunities. Competitive advantages will also be realised by taking full advantage of the potential of logistics clusters, where industry, academia and government collaborate closely. Delphi panellists think that of such clusters will activate new potential in transport infrastructure development.

Awareness about sustainability and climate change is omnipresent, since the effects of transport infrastructure and transport networks on the environment are profound. These impacts should be assessed from a long-term perspective, particularly in light of the fact that Delphi respondents think environmental costs will become an integral part of assessing the full cost of transport infrastructure projects. Furthermore, they expect that by 2030 transport infrastructure operators will participate in the emission trading system by obtaining pollution permits.

Source: Container Management