PPPs crucial to plug global infrastructure gaps

The lack of infrastructure and skills are two major challenges facing the transport and logistics industry globally, says Klaus-Dieter Ruske, global industry leader for transport and logistics at PricewaterhouseCoopers (PwC). “Experts say some $41 trillion is needed globally until 2030 to maintain, upgrade and build new infrastructure. Governments cannot finance this alone and CEOs across the spectrum have realised they need to participate in ensuring countries’ infrastructure is maintained and developed,” said Ruske. “But transport and logistics companies more than any other industry realise the necessity for private partnerships with government when it comes to infrastructure as they are very dependent on good infrastructure to deliver their services.” The PwC 14th Annual Global CEO survey found that 55% of transport and logistics CEOs planned to increase their commitment over the next three years to improving the infrastructure of the countries in which they operate. “There is a definite realisation among CEOs that partnering is needed to develop transport infrastructure particularly. Already investments in transport infrastructure are insufficient to close all the bottlenecks. Future projections are that arguments promoting regulatory measures such as road tolls or congestion charges will prevail, while financing the maintenance of transport infrastructure will be a greater challenge than attracting capital for investments in new infrastructure.” Ruske says while governments cannot completely shift transport infrastructure investments to the private sector, it is going to become increasingly necessary to work together if countries are going to handle the large infrastructure bills.