Upload
norman-anderson
View
312
Download
1
Tags:
Embed Size (px)
DESCRIPTION
An overall description of the state of North American infrastructure, and suggestions for dramatic improvement - including the concept of an infrastructure bank. Focus on the Nafta Corridor, center of the US, plus Canada, plus Mexico.
Citation preview
NASCO Strategic Infrastructure Presentation
2011 NASCO Conference
Kansas City, MO • May 17-18, 2011
3 Topics/Building North American Competitiveness
Global Infrastructure Trends - 5 TRENDS
North American Realities
Strategies to Build Competitiveness
$0
$750,000
$1,500,000
$2,250,000
$3,000,000
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
Infrastructure Spending in Millions of Dollars
Trend #1 - Increasing Infrastructure Scarcity1980-2030
Source: CG/LA Infrastructure Global 2030 Projections Model
24T
40TMore of a Fact than a Trend
Huge Area for Creative Development
$16T
Perception versus Reality
0
10
20
30
40
35 39
14
54
6042
3424
20
What will be the cumulative size of the global infrastructure market in the 2011-2030 period?
%
74% of Industry Expertsare Massively Off
Trend #2 - Public Leadership
0 100 200 300 400
36
36
240
36
240
360
Finance
Political/Policy
Engineers
Lawyers
Public
Pension Funds
Meaning? Will Every Country Need a Development Bank
Months
Trend #3 - Public Leadership/Public Sector Capacity
!"#$
%"&$
%"'$
%"($
!"#$
&"'$
&")$
)"'$
'$
($
*$
!$
)$
+'$,-.-/0$
1234-5$6758/9$
:75;0-5<4$=<><5-8?$
1234-5$6758/9$
689<87@-5$=<><5-8?$
A97<8$19/B758.$
C7<D79.;->$
C/0@$:79E$19/B758$
179F/9E<057$
C/5<4$G1=$H-9E.$
C/5<4$GI2-8?$
=<><5-8?$
51.3/3Source: CG/LA Annual CIC Survey
India
!"#$
!"%$
%"&$
'"%$
!"'$
'"($
&"($
'"#$
($
)$
%$
'$
&$
*($+,-,./$
0123,4$5647.8$964:/,4;3$
<;=;4,7>$
0123,4$5647.8$578;76?,4$
<;=;4,7>$
@86;7$08.A647-$
B6;C68-:,=$
B./?$968D$08.A647$
068E.8D;/46$
B.4;3$F0<$G,8D-$
B.4;3$FH1,7>$<;=;4,7>$
48.9/1
Brazil
Real Public Sector Capacity Building Requirement - The Real “Gap”
!"#$
%"&$
%"'$
("!$
%"&$
(")$
("&$
%"($
#$
)$
%$
!$
*$
+#$,-.-/0$
1234-5$6758/9$
:75;0-5<4$=<><5-8?$
1234-5$6758/9$
689<87@-5$=<><5-8?$
A97<8$19/B758.$
C7<D79.;->$
C/0@$:79E$19/B758$
179F/9E<057$
C/5<4$G1=$H-9E.$
C/5<4$GI2-8?$
=<><5-8?$
41.2/0US
Trend #4 - Technology Drives Infrastructure
Highway System - Trucks & Cars Smart Grid
Diesel Rail
Large Vehicles
Diesel Trucks
Central Generation (Coal & Diesel)
Analog Grid
Giant Utilities
State-CenteredHigh Carbon
Public ControlLiquids
Private SectorCarbon NeutralPublic + Private
Electrons
Renewables
Smart Meters & Batteries
Massive Technology Innovation
Electric Rail
Electric & Hybrid Cars
High Speed Rail
Venture Infrastructure BankGeneral Fund
Innovation - Business Model, Finance, Technology, Operation
A 50 Year Old Infrastructure Design& Project Delivery Model
Trend #5 - Winners & Losers
Water
Urban Mobility
Wastewater
These are Clear Issues - But Where does the Money Come From?
0
0.75
1.5
2.25
3
2000 2005 2010 2015 2020 2025 2030
0.18 0.18 0.19 0.21 0.23 0.24 0.24
All Infrastructure Water & WW
Small Countries
%/GDP
Trend #5 - Hot SpotsHigh Potential
Actual
China
India
Russia
Brazil
US
Mexico
Chile
Germany
Colombia
IndonesiaVNam
VenezuelaCambodia
70%
White Space: The Basics10 Infrastructure Global Hotspots
United StatesUS$5,471
ChinaUS$13,740
JapanUS$3,528
1
Note: Figures are expressed in billions of USD
3
4
2
5
67
8
910
BrazilUS$1,180
IndiaUS$1,491
South KoreaUS$1,029
GermanyUS$1,650
SpainUS$1,106
ItalyUS$1,322
FranceUS$1,274
In the coming 20 years, 10 countries will account for 75% of the total infrastructure global market. These are the infrastructure global hotspots. Despite the fact that each individual country faces different challenges, these locations have the ability to move projects forward keeping the current momentum of their economies and infrastructure markets. These countries also represent the new economic clusters that will attract global investment in the coming decades and that will have the capability of providing valuable opportunities to its citizens.
White Space:The financial hill ahead to improve infrastructure
Quality of Infrastructure
(scale: 0-7)
GDPCumulative/ Billion
5
50,000
US
China Japan
73
FranceIndia
EnglandBrazil
Italy
Circle size represents investment per capita
CanadaS. KoreaRussia
Spain
Germany
Mexico
Philippines
UAE
This graph shows the investment per capita in each country in relation to the Quality of Infrastructure and economy size. Countries located in the lower left hand are in a tough situation: their economies are relatively small and their infrastructure quality is poor. These countries will need to make significant changes to improve its public sector capacity and increase private sector investments overcoming most of the five issues for infrastructure development: institutional arrangement, corruption and private sector involvement. China is the only country with poor infrastructure and a big economy (perhaps India will join them soon). Their challenge will be the correct allocation of resources combined with sustained growth.
North American Realities
0%
1%
2%
3%
4%
19801985
19901995
20002005
20102015
20202025
2030
United States Infrastructure Investment 1980-2030
High EndLow End
TIGERTIFIAHSR
INFRA FUNDBUILD AMERICA BONDS
STIMULUS
STRATEGIC SPONSOR
GOLD SPONSORS
PLATINUM SPONSORS
!"#"$%"%%$!&'"$%!"##$
$()&%"*+( ,&('%+( -$$./#,$%#$(
MADISONWILLIAMSAND COMPANY
MADISONWILLIAMSAND COMPANY
National Infrastructure Bank
Vision - The Key
North American Competitiveness
North American Productivity
North American Opportunity
Strategic Projects
So, (1) What are they? and (2) Where DOES the Money Come From?
Basic Description
PrivatizationTraditional Public Sector Procurement PPP’sOutsourcing
PrivatePublic
Least Risk Transfer Most Risk Transfer
Operational & Institutional Weakness
Operational & InstitutionalStrength
Increased Private InvestmentAmerica’s Growth Path in Infrastructure
0
100
200
300
400
150150
150150
150
3 10 30100
160
20112012
20132014
2015US BasU Plus APF
CurrentGlide Path
PPPPotential
$US B
Back to the Vision Thing
Advanced Manufacturing
NearShoring
Strategy - What do we Do?
Strategic Implications
Major Technological Transition - Liquids to Electrons
Situation of Scarcity - What is a $16 Trillion Gap?
New Model Confusion - Roles of Public & Private Sectors
New Set of Winners + Losers - Does this Really Work
Who Leads? Who Decides?
Public v Private
LT v ST
Strategic Opportunity
Make Projects?
Create Finance?
Do Technology?
Specialty or IntegratedCompanies?
Strategic Tools
National Infrastructure Bank
New Infrastructure Matrix
The 60 Year old Design
Something that Works in a Globalized, and Increasingly Globalizing, World
Injection of Creativity & Innovation - and SPEED - into the Infrastructure Business
0
100
200
300
400
150 150 150 150 150
3 10 30
100
160
2011 2012 2013 2014 2015
US BasU Plus APF
Vision - Projects & Competition
THANK YOU
0
375000
750000
1125000
1500000
155,305158,975
163,207194,928 262,125
302,112335,227
248,068269,501
292,055 332,839 392,488 466,027556,578
283,295 330,876453,769
645,927
871,204
1,151,321
1,487,628
20002005
20102015
2020
2025
2030
US EU27 Asia
US, EU, Asia to 2030
“Logic will get you from A to B, Imagination will get you Everywhere”
Albert Einstein