Mar 04, 2011
Transport firms more upbeat about prospects, global survey showsBack
Port|PricewaterhouseCoopers|Road|Asia|Latin America|China|USD|Logistics|Transport|Transport Infrastructure|Infrastructure|Klaus-Dieter Ruske|Peter Kauschke
© Reuse this
South African CEOs also participated in this survey.
“This number is a very positive one,” says PwC T&L global industry leader Klaus-Dieter Ruske. “One reason for this is increased efficiency as companies cut costs during the economic crisis.”
Around 90% of CEOs report that they have implemented cost-reduction initiatives in the past 12 months.
Most CEOs expect growth to come primarily from emerging markets, with their expectations placed on Latin America, Asia and China.
More than 70% of CEOs say that they are changing their strategies to respond to the growth potential in emerging markets.
At least 60% of CEOs see growth in the African T&L market over the next 12 months, as they expect their customers to grow, says PwC T&L global business development and marketing’s Dr Peter Kauschke.
Another shift in the T&L market is that 40% of industry CEOs plan to complete a merger or acquisition in the coming 12 months.
In fact, 27% of CEOs see mergers and acquisitions as the main opportunity to grow their businesses in the next 12 months.
This could be because many companies now have cash on their balance sheets, following two years of preserving liquidity and improving efficiency.
A separate PwC analysis of the top ten global T&L companies shows that the average amount of cash available on balance sheets in the third quarter of 2012 was nearly $3-billion, up from an average of $2-billion five years ago.
T&L CEOs are also signifi- cantly less concerned about protectionism in 2011, and only 37% have expressed concern, compared with 66% last year.
When it comes to infrastructure, T&L CEOs see quite a shift in strategy ahead as current investments into transport infrastructure are viewed as insufficient to close all bottlenecks.
“If you look globally, $41- trillion is needed over the next 20 years to build and maintain the [global] infra- structure network. We see insufficient development of transport infrastructure. We think only $20-trillion will be spent,” notes Ruske.
He says government is not able to fund this backlog and that more of the responsi- bility for new infrastructure will shift towards the private sector. However, this will promote the argument for road tolls and congestion charges, which will have a cost impact on the T&L industry.
It is then also perhaps no surprise that 50% of T&L CEOs indicate that they are worried that inadequate infrastructure could prove a threat to growth.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...