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.

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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.