PricewaterhouseCoopers publishes 'Transportation & Logistics 2030' report, second edition

These are the headline findings from the second report in PricewaterhouseCoopers 'Transportation & Logistics 2030' series, carried out in cooperation with the Supply Chain Management Institute (SMI) of the European Business School (EBS).

Respondents to the underlying Delphi survey of 104 experts in 29 countries predict that shortages in transport infrastructure will remain until 2030. In terms of the survey methodology, participants were asked to assess the probability of a variety of hypotheses on a scale of 0-100%.

Respondents expect that industrialised countries will lead in transport infrastructure provision, with an average probability of occurrence of 60%. Although emerging markets, such as India and Russia, currently heavily invest 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.

'Gaps in financing are a paramount concern for all levels of infrastructure, local, national or international. In what concerns Romania, where the need for developing infrastructure projects is stringent, the Romanian state should prepare a long term investment strategy. Even in the context of the current budgetary constrains, Romania must allocate consistent sums of money for the development of the transport infrastructure so as to maximize its natural potential to become a logistics hub of Central and Eastern Europe, potential based on two main factors, the proximity of the developed markets of Central Europe and the Black Sea access through the Constanţa harbour, a true Eastward gate of Europe. Also the granting of certain import incentives, such as import VAT deferment, would eliminate the cost of pre-financing VAT for companies, and would increase the number of transactions in the harbour. Such a measure would attract major investments in Romania and would contribute decisively to the development of infrastructure and the creation of new jobs', stated Daniel Anghel, Partner, Indirect Taxation, PricewaterhouseCoopers Romania.

Governments, in industrialised as well as emerging countries, are facing enormous challenges in attributing 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 (with a probability of occurrence of 75%).

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 holistic, 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 a transport infrastructure project. Furthermore, they expect that by 2030 transport infrastructure operators will participate in the emission trading system by obtaining pollution permits, indicated by a probability of occurrence of 78%.

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For a copy of the study 'Transportation & Logistics 2030 - Volume 2 - Transport Infrastructure - Engine or hand brake for global supply chains? please visit www.pwc.com/tl2030 or www.tl2030.com PwC and SMI surveyed 104 experts from 29 countries from 5 continents using an online Real-time Delphi method. Over a time period of 8 weeks the expert panel discussed and assessed different scenarios for the T&L industry in a multi-staged procedure.

PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

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