China and India have been identified as offering the best investment opportunities for the transport sector over the next five years by 48% of respondents to law firm Norton Rose Fulbright’s The Way Ahead transport survey.

“The transport sector is continuing to look to Asia-Pacific for investment opportunities, encouraged by rising demand and China’s ambitious Belt and Road initiative, a modern day Silk Road which will improve China’s infrastructure links with the rest of the world,” said Harry Theochari, global head of transport at Norton Rose Fulbright.

Respondents rated the US next, citing growth in the transport sector through consolidation. While respondents indicated confidence in the aviation and rail industries (92% and 77% respectively), due to factors such as lower oil prices, the availability of funding and the impact of infrastructure improvements, they were least optimistic for the shipping industry. The reason: overcapacity in many market subsectors.

Thirty-nine percent said that consolidation will form the most important part of transport businesses’ strategy over the next 12 months, 52% said that a global recession poses the greatest threat and 67% anticipate an increase in investment in technology over the next five years. Infrastructure investment is viewed as the most helpful form of government support for the sector.