The report also explores the main drivers behind the trend of increasing M&A activity in the transport infrastructure segment by looking at factors such as how public budget restraints across debt ridden countries have forced national governments to privatize national infrastructure and look for private operators and investors in order to secure the sustainable operation of strategic transport infrastructure and hub networks. But on the other hand, private investors like pension funds are constantly looking for investment opportunities with steady cash flows and growth perspectives.
Talking about the opportunities and challenges for the GCC railway, Daniel Lawrence, Manager Transport Advisory at KPMG said “Following the recent hiatus in UK rail franchising activities, many European rail operators have been turning their attention increasingly to developments overseas. One area eliciting particular interest is the Middle East. The region holds huge potential for rail operators, due to an extensive transport investment plan driven by the ambition and wealth of the Governments. The estimated budget for rail development in Saudi Arabia alone is believed to be US $90bn over 30 years. The region also has the benefit of being largely free from incumbent operators.”
You can access the full report at the following link:
For further information, contact:
Partner - Transport and Logistics
KPMG in the UAE
Communications Manager (LG)