Latam and the Caribbean have the greatest potential for new road concessions
GRI Barometer indicates that 70% of the companies are looking at the region
Prior to the opening of the 2nd GRI Global eSummit, GRI Club conducted a survey with sector leaders around the world to identify where the greatest opportunities are, the more relevant areas of focus and the main challenges and risks in a pandemic scenario.
Over 80% of the 315 respondents said that the framework for long-term contracts between private investors and governments is good or regular in their region of operation, but improvements are needed. Only 15% are completely satisfied, and a small percentage (2.8%) indicates a bad situation where they invest or operate.
How well-developed would you classify the framework for a long-term contract between private investors and governments for providing infrastructure assets and services in the road sector, in which the private partner will bear a significant amount of risk, management responsibilities and remuneration linked to performance in your region of operation?
196 answers
Regular
62 answers
Very good, it’s well-developed and attractive for investments
48 answers
Bad
9 answers
According to the key executives, the main challenges and risks at this moment are political or regulatory, with 60% of choices. The lower demand is pointed out soon thereafter (49%), followed by social issues completing the top three options (46%). On the other hand, insolvency (8%), design and construction (11%) and operation management (11%) were the least voted. See all the votes below.
What are the main challenges and risks of investing in the road sector in a global pandemic scenario? (multiple choice)
192 answers
Demand
157 answers
Social issues
147 answers
Changes in the legal framework
126 answers
Financial or economic
123 answers
Force majeure
96 answers
Environmental
76 answers
Project location
43 answers
Operational Management
37 answers
Design and Construction
35 answers
Insolvency
28 answers
GRI Barometer shows that companies are interested in Latin America and the Caribbean opportunities: 70% of the leaders indicate that these two regions have the greatest potential for new infrastructure projects in road concessions for the next 12 months. The number is even more relevant when considering that the second choice (USA & Canada) had 39% of votes. Asia-Pacific comes next, with 31%.
Considering a strong opportunity pipeline scenario, which markets worldwide do you think have the greatest potential for new infrastructure projects in road concessions for the next 12 months?
222 answers
USA & Canada
124 answers
Asia-Pacific
100 answers
Western Europe
33 answers
Eastern Europe
29 answers
Middle East & North Africa
28 answers
Sub Saharan Africa
23 answers
Across the globe, companies are currently focusing on investments (60%), road maintenance/operation (46%) and advisory (41%). Largely debated nowadays, ESG implementation appears only in fourth place, with 24% of the votes. See all the options and respective percentages in the chart below.
Which of the following will your company focus on? (Multiple choice)
192 answers
Road maintenance & operation
145 answers
Advisory
132 answers
ESG implementation
77 answers
Connectivity and Technology
64 answers
Logistics and integration with other modes to move cargo
44 answers
Safety and capability
36 answers
Operator - Passenger Transportation
19 answers
Operator - Cargo Transportation
16 answers
Finally, the survey measured the willingness of leaders to invest in road assets - either local or international projects - in the next 6 months: 65% of them confirm that their companies are willing to take opportunities in the short-term, which indicates optimism about investments in the road sector.
Are you willing to take future opportunities to invest in road assets - either local or overseas projects - in the short-term (next 6 months)?
206 answers
No
109 answers
Por Henrique Cisman