Global Infrastructure Demand through 2030 Study Released by CG/LA Infrastructure, in Association With Sterne Agee
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WASHINGTON, DC, Mar 27 (MARKET WIRE) -- CG/LA Infrastructure, in association with Sterne Agee, today released estimates for global infrastructure demand, 2008-2030. "Overall we see a very strong Long Boom in infrastructure demand," according to Norman F. Anderson, President & CEO of CG/LA Infrastructure, "with between $24 trillion and $30.5 trillion invested in new plant and equipment worldwide during the period." The study -- "Effective Demand in the Global Infrastructure Marketplace; Building the Next Generation's World" is anchored analytically on a global projectsdatabase, and will be available on April 30th. Key findings include: -- Weakness in the US infrastructure market, because of significant issues with the policy and financing model -- such that overall competitiveness is significantly threatened unless investment levels can be dramatically increased from a current level in the range of $150 billion/year to over $300 billion; -- A general recognition that China is the #1 country in the world for infrastructure investment, at nearly $200 billion per year -- but with looming problems in electricity generation and clean water provision that raise questions about the country's ability to maintain these investment levels; -- Uncertainty in the emerging markets of Latin America, Asia and especially Africa because of significant problems in project origination capacity -- projects tend to take a long time to develop, and they tend to be short-lived public works initiatives rather than long-term, strategic projects. Global Macro-Regions for Infrastructure Project Creation: Effective Demand in the Global Infrastructure Marketplace structures the global marketplace in terms of eight distinct regions, each with its own project creation and investment dynamic: 1. North America ($180 billion/year) - The region, including Canada and Mexico, averages only $180 billion in investment throughout this period. This is a significant investment, because this is only about 50% of the $300 billion annual investment required for the region to increase competitiveness. 2. The Expanded EU ($305 billion/year) - The EU, with Accession Countries, has a well-developed infrastructure vision, and an investment structure in place that is manufacturing the right projects -- the region is becoming an infrastructure power. 3. Africa ($10 billion/year) - The infrastructure crisis in Africa is severe, and there is no evidence of anything on the horizon to change this fact. The region needs to invest, in the right projects, at more than five times its current rate. 4. Middle East ($56 billion/year) - The region is famously on the infrastructure move, and although activity is poorly distributed across this wide swath of land, from Morocco to Iran, a number of projects -- and country visions -- are world pace setters. 5. Latin America ($45 billion/year) - Latin America shows very uneven infrastructure investments, tilting toward ports & logistics and away from quality of life infrastructure like highways and water/wastewater. The region's investment in good projects should be three times the current level. 6. Russia/FSU ($56 billion/year) - Russia and the region of the former Soviet Union are beginning to use oil and gas revenues to invest heavily in infrastructure. Currently focused around St. Petersburg, Moscow, and Sochi -- site of the 2012 Winter Olympics -- the region will yield strong opportunities in the coming years. 7. China ($200 billion/year) - The #1 country for infrastructure investment globally, outstripping the US -- as well as Japan, the UK and Germany combined. China, however, will have trouble sustaining these levels, given looming problems in water, power generation and the requirements of hinterland growth. 8. Non-China Asia ($200 billion/year) - A region of enormous contrasts, extending from Australia to India, perhaps the outstanding feature is the out-performing Australian market, that is driving new financing models around the world, coupled with chronically under-performing India, mired in bureaucratic friction. The study not only looks at countries and regions, but also breaks out spending by sectors. Globally in 2008 sector spending will be the following: Water/Wastewater investment will be $2.4 trillion, although overall demand is two to three times that level; power investment will be in the range of $7.2 trillion, with significant plant and fuels inflation; the world's transport investment this year, from ports and rail to urban mass transit, will be just over $9 trillion; and new telecoms investment will be $5.4 trillion. "The North American findings are particularly troubling," according to Anderson, "lacking a modern and dynamic financing model competitiveness in this region will continue to decline, immigration problems with Mexico willmultiply, and the ability of the US to create and support firms capable of participating in global infrastructure's Long Boom will be weakened." About CG/LA Infrastructure LLC: CG/LA is a twenty-one year old firm that focuses on infrastructure project strategy and development, globally. The firm also operates the Latin American Leadership Forum, now in its sixth year (featuring the Top 50 projects in Latin America, April 1-3 in Miami); and the Global Infrastructure Leadership Forum, now in its second year, (featuring the Top 100 global projects, December 11-12 in Washington). For more information see: www.cg-la.com Contact: J. Alex Shtogren VP, Sales & Marketing Tel: 202-779-0990 Email: Email Contact Copyright 2008, Market Wire, All rights reserved. -0-
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