Norton Rose Fulbright: Big Data and New Markets Will Be Key Disruptors to Transport Sector
Rapid developments in technology are transforming the outlook for the transport sector and will provide the best investment opportunities for the sector, according to the eighth The way ahead Transport survey from global law firm Norton Rose Fulbright.
Closer integration with other forms of transport to develop bespoke end-to-end passenger journeys, or tailored supply chains, is viewed as the infrastructure investment that would benefit the rail, shipping and logistics industries the most between now and 2022, according to 44% of respondents. Enthusiasm for integration is more muted among respondents from the aviation industry, with 57% of respondents calling for additional capacity, particularly in emerging markets.
A fifth of respondents view new technology as the optimal investment opportunity for their industry, ahead of investment in infrastructure improvements. Big data and predictive analytics are expected to be the most significant drivers of change in the sector over the next five years according to 43 percent of respondents. However, as the sector increasingly looks to digitalisation 82% of respondents anticipate an increase in cyber-attacks over the next five years.
The impact of global political uncertainty (29%) and a global recession (22%), are seen as the greatest threats to the sector over the next five years.
While 52 percent of respondents from the rail industry believe finance will be increasingly available over the next five years, just 22 percent from aviation and shipping, and 19 percent from logistics, hold the same view.
Harry Theochari, global head of transport, Norton Rose Fulbright, comments:
“The sector is moving towards closer collaboration with other modes of transport. The development of Mobility as a Service, with bespoke end-to-end passenger journeys and tailored logistics chains will enable operators to offer services where supply fits demand rather than vice versa.”
“Technology investment is on the rise and that seems likely to continue. Big data and predictive analytics give operators the ability to anticipate repairs and maintenance and to better understand and forecast consumer behaviour giving those operators a significant competitive advantage at a time of increasingly fierce competition across the sector.”
“There is apprehension about the impact global political uncertainty will have on transport businesses. This is unsurprising when you consider that the success of the transport sector relies on strong global trade and the ability to operate with as few restraints as possible. As the Brexit process unfolds, many will be looking at its direct impact and working through a number of potentially complex implications.”
“Asia continues to be the most popular region for investment opportunities for aviation, shipping, and logistics, with the rail industry looking to Europe predominantly. China’s Belt and Road initiative is one of the greatest infrastructure initiatives of our time and is part of a wider trend Eastwards for major trading routes. It is unsurprising that respondents are most enthusiastic about investment in Asia, and China in particular.
“The mood across the sector is optimistic and it is encouraging to see respondents from the shipping industry looking more positive than in previous years.”
Sentiment is overwhelmingly positive in the aviation industry, with 90 percent of respondents reporting that current market conditions are favourable for their industry.
Respondents appear divided when asked what they view as the optimal investment opportunity for the sector. While 25 percent point to the development of new markets, both geographical and sectoral, 17 percent point to the purchase or leasing of aircraft, favouring new rather than used aircraft, and narrow-body rather than wide-body or regional aircraft. A further 17 percent highlight infrastructure improvements.
57% of respondents believe that increased airport capacity in emerging markets and at existing airports is the infrastructure investment that would benefit their industry the most over the next five years. 28% prefer to focus investment on air traffic control.
Unlike the rail, shipping and logistics industries, respondents’ enthusiasm for investment in new technology is more muted – just 5 percent believe that this is the optimal investment currently, compared with 20 percent of all respondents.
China offers the best investment opportunities over the next two to five years, according to 24 percent. India and the US are also popular markets for aviation investment, according to 16 percent and 11 percent respectively, with India overtaking the US in the past year. Regionally, Asia is the most popular investment market, favoured by 55 percent.
Despite the limited interest in investment in new technology generally, big data and predictive analytics finds enthusiastic supporters amongst respondents from the aviation industry
The ability to anticipate passengers’ behaviour, as well as maintenance issues and repairs, will be the biggest driver of change in the aviation industry over the next five years according to 47 percent, and is likely to give the operators who adopt this technology a clear competitive advantage.
When asked which regulation has had the greatest impact on the aviation industry over the past decade, 30 percent pointed to an uncoordinated approach to aviation regulation globally, while 15 percent cite the regulation of competition and barriers to entry, and 13 percent mentioned fragmented and bilateral air service agreements.
Negotiating coordinated air service agreements comes top of the aviation industry’s wish list for government support. 25 percent believe that Open Skies agreements would be the most helpful form of government support for the aviation industry, followed by 18 percent who would like to see the removal of barriers to foreign investment – both key concerns for airlines with operations in Europe following the UK’s vote to leave the European Union. 16 percent would like passenger and fuel taxes to be lowered.
29 percent of respondents anticipate that capital markets will be a key source of funding over the next two years, followed by 25 percent who point to operating leases (which free up airline capital), and 24 percent who point to bank debt. Respondents are broadly satisfied that finance will remain available to the aviation industry – 65 percent believe that access to funding will remain at the same level over the next five years, while 22 percent believe that funding will become increasingly available.
86 percent believe that current market conditions are favourable for their industry, down marginally from 92 percent in 2016. The continued confidence of respondents from the rail industry is attributed to growing urban populations creating increased demand for rail transport, cited by 40 percent.
Improved conditions in key markets is highlighted by 16 percent and the availability of funding for investment and the emergence of new market opportunities are both cited by 12 percent. 52 percent of respondents from the rail industry believe finance will be increasingly available over the next five years.
Half of respondents from the rail industry believe that integration with other forms of transport to develop Transport or Mobility as a Service, creating and managing journeys using a mix of public and private means of transport, including the “last mile” leg from the station to destination and paid for with a single account, would be more beneficial than increased capacity on existing lines and the development of high speed lines.
In common with respondents from the shipping and logistics industries, rail respondents expect big data to be the technology most likely to transform the rail industry over the next five years. 38 percent believe that the ability to anticipate passenger behaviour and predict repairs and maintenance issues via the adoption of big data and predictive analytics will be the biggest catalyst for change, followed by 21 percent who point to the increased automation of rolling stock, and 17 percent who point to. Software supporting Transport as a Service.
When asked what poses the greatest challenge to the operational efficiency of the rail industry, 31 percent point to inadequate infrastructure, while 17 percent express unease about a lack of suitably qualified people.
Regulation remains a concern for the rail industry. Aside from infrastructure investment, respondents believe that the government support most helpful to the industry would be deregulation and greater transparency as to the introduction of proposed regulation and in the application and enforcement of new regulation, both highlighted by 24 percent.
The regulation respondents would most like governments to address is the regulation of competition and barriers to entry. This is the regulation that has had the greatest impact on the rail industry over the past decade, according to 39 percent.
Confidence in the shipping industry appears to be improving. This year, 37 percent report that current market conditions are positive for the shipping industry, compared with 15 percent in 2016, 33 percent in 2015, and 69 percent in 2014. Asia Pacific is the region thought to offer the best investment opportunities overall, by 45 percent.
Aside from fuel efficient and low carbon technology, big data and predictive analytics is expected to be the most significant driver of change in the shipping industry over the next five years, according to 46 percent, while 19 percent believe that software supporting Transport as a Service, which allows for the development of tailored end-to-end supply chains, has the greatest potential to transform the industry.
The problem of overcapacity has been an enduring theme - 65 percent of the 63 percent who do not consider current conditions to be positive blame overcapacity. In fact, 35 percent of all respondents from the shipping industry believe that supply and demand imbalances pose the greatest challenge to the operational efficiency of the shipping industry, although this is down from 47 percent in 2016.
Of the 37 percent who believe current conditions are positive, 36 percent cite improved economic conditions, while 19 percent report that overcapacity issues have been largely resolved. Continued lower oil prices are also assisting the industry, according to 16 percent.
Just 22 percent believe that the availability of funds will increase, while 41 percent fear that funding will become more unobtainable, a considerably higher proportion than respondents from the aviation, rail or logistics industries. In addition, respondents are expecting lenders to take a tougher stance on problem loans, with 54 percent anticipating that enforcement actions will increase between now and 2022.
While funding is forecast to become more difficult to access, bank debt is expected to remain the industry’s primary source of funding, according to 23 percent, followed by private equity and shareholders, selected by 15 percent and 14 percent respectively.
Greater transparency as to the introduction of proposed regulation and in the application and enforcement of new regulation is seen as the most helpful form of government support for the industry, by 55 percent. A further 29 percent would favour deregulation, followed by 18 percent who favour fiscal incentives and a further 18 percent who call for the removal of barriers to foreign investment.
When asked which regulation has had the greatest impact on the shipping industry over the past decade, 43 percent pointed to increased environmental regulation, followed by 18 percent who highlight the impact of trade and financial sanctions, and 12 percent who point to fragmented global regulation.
About this survey
The survey, entitled “The way ahead” is the eighth annual survey of the transport sector released by Norton Rose Fulbright. It details 196 responses from a range of companies involved in aviation, rail, shipping and logistics globally including financiers, owner/operators, manufacturers, government entities and professional services firms, during April 2017.
Notes for editors:
Norton Rose Fulbright is a global law firm. We provide the world’s preeminent corporations and financial institutions with a full business law service. We have more than 3500 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.
Norton Rose Fulbright will combine with Chadbourne & Parke, a leading international law firm, during the second quarter of 2017. Norton Rose Fulbright's expanded practice will have more than 1000 lawyers in the US and 4000 lawyers worldwide.
Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.
Norton Rose Fulbright Verein, a Swiss verein, helps coordinate the activities of Norton Rose Fulbright members but does not itself provide legal services to clients. Norton Rose Fulbright has offices in more than 50 cities worldwide, including London, Houston, Toronto, Sydney and Johannesburg.
Law around the world
Norton Rose Fulbright
Senior PR Manager
Tel: +44 (0)20 7444 3097; Mob: +44 (0)7595 886 276
Senior PR Manager
Tel: +44 (0)20 7444 5086; Mob: +44 (0) 7909 684893
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Tilaa tiedotteet sähköpostiisi
Haluatko tietää asioista jo ennen kuin ne uutisoidaan? Kun tilaat tiedotteemme tältä julkaisijalta, saat ne sähköpostiisi yhtä aikaa suomalaisen median kanssa. Tilauksen voit halutessasi perua milloin tahansa.
Lue lisää julkaisijalta Business Wire
OTEZLA® (Apremilast) Phase III Data Showed Significant Improvements in Patients with Active Behçet’s Disease with Oral Ulcers18.2.2018 00:00 | Tiedote
Celgene Corporation (NASDAQ:CELG) today announced that data from the phase III RELIEF™ clinical trial of OTEZLA® (apremilast) in patients with active Behçet’s Disease with oral ulcers were presented in a late-breaking oral presentation at the 2018 American Academy of Dermatology (AAD) Annual Meeting. The results showed statistically significant reductions in oral ulcers with apremilast 30 mg twice daily (BID) versus placebo through week 12. OTEZLA (apremilast) is Celgene’s oral selective inhibitor of phosphodiesterase 4 (PDE4). Behçet’s Disease is a rare, chronic, multi-system inflammatory syndrome. Oral ulcers, the most common manifestation of Behçet’s Disease, can be disabling and have a substantial effect on quality of life. This study primarily evaluated the effect of apremilast on recurring oral ulcers in patients with active Behçet’s Disease who were previously treated with at least one topical or systemic medication. “Reducing oral ulcers, which are painful and can negatively im
CT-P13 (biosimilar infliximab) is comparable to reference infliximab and adalimumab in highly anticipated real-world study17.2.2018 11:00 | Tiedote
Twelve-month data from the Personalised Anti-TNF therapy in Crohn’s disease Study (PANTS) was presented at the 13th Congress of the European Crohn’s and Colitis Organisation (ECCO). The results indicate that the clinical effectiveness, safety and immunogenicity of Celltrion Healthcare’s CT-P13 (biosimilar infliximab) in patients with Crohn’s disease (CD) is comparable to those treated with reference infliximab as well as those treated with adalimumab.1 The UK-wide, three-year prospective observational study investigated primary non-response (PNR), loss of response (LOR) and adverse drug reactions (ADR) to infliximab (reference infliximab and CT-P13) and adalimumab in 1610 CD patients. The data show comparable efficacy between CT-P13, reference infliximab and adalimumab in relation to PNR, LOR and ADR rates. In addition, at week 54, the remission rate was 39.7%, 39.0% and 32.7% for reference infliximab, CT-P13 and adalimumab treated patients, respectively.1 The PANTS study investigates
Avanti Communications HYLAS 4 Satellite Arrives in French Guiana16.2.2018 21:26 | Tiedote
Avanti Communications Group plc (“Avanti”), a leading provider of satellite data communications services in Europe, the Middle East and Africa (“EMEA”), announces its HYLAS 4 satellite has arrived safely in French Guiana ahead of its March 2018 launch. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180216005586/en/ Avanti Communications HYLAS 4 Satellite Arrives in French Guiana (Photo: Business Wire) The spacecraft, built by Orbital ATK was packed and shipped at their Satellite Manufacturing Facility in Dulles, Virginia, United States and flown to French Guiana, where it was unloaded and will be taken to the Arianespace launch facilities in Kourou. HYLAS 4 uses the latest High Throughput Satellite technology, doubling Avanti's Ka-band capacity across EMEA. The latest addition to Avanti's HYLAS fleet will provide: Backhaul services for mobile network operators Wholesale broadband for ISPs Connectivity for governments (civil a
General Cable Corporation Stockholders Approve Acquisition By Prysmian Group16.2.2018 20:05 | Tiedote
General Cable Corporation (NYSE: BGC) today announced the voting results from the Company’s special meeting of stockholders held this morning. Stockholders of General Cable approved the Company’s previously announced acquisition by Prysmian Group (BIT: PRY) for $30.00 per share in cash. A total of 38,140,754 shares, representing approximately 75.34% of the total number of shares of common stock outstanding and approximately 99% of the total votes cast, were voted in favor of the merger. Subject to regulatory approvals and other customary closing conditions, the transaction is expected to close by the third quarter of 2018. About General Cable General Cable (NYSE:BGC), with headquarters in Highland Heights, Kentucky, is a global leader in the development, design, manufacture, marketing and distribution of aluminum, copper and fiber optic wire and cable products for the energy, communications, automotive, industrial, construction and specialty segments. General Cable is one of the larges
Systemic Sclerosis World Congress:Inspirational Patient Stories Reveal the Challenging Realities of Living with Devastating Rare Disease16.2.2018 12:03 | Tiedote
Boehringer Ingelheim today unveils a new phase of 'More Than Scleroderma: The Inside Story', and launches the new patient website www.morethanscleroderma.com. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180216005188/en/ Anna, 36, living with scleroderma (Photo: Business Wire) The global initiative highlights the importance of understanding the ‘inside story’ of each individual living with scleroderma, also known as systemic sclerosis. To coincide with the Systemic Sclerosis World Congress in Bordeaux, 15-17 February 2018, new and truly inspiring patient stories are revealed, reflecting the real-life, diverse and very moving journeys of people living with scleroderma across the world. The campaign will also be launched in the U.S. The new website www.morethanscleroderma.com features a powerful collection of photographs and video stories of people living with scleroderma across the world, revealing the life-changing impact o
Philip Morris International Recognized as a Global Top Employer for the Second Year in a Row16.2.2018 11:00 | Tiedote
Philip Morris International Inc. (PMI) (NYSE/Euronext Paris: PM) today is recognized for the second year in a row as a Global Top Employer. This year’s certification from the Top Employer Institute is awarded to PMI teams in 44 countries, a testament to the company’s consistency and excellence in offering an enriching and dynamic work environment, and exceptional development opportunities for employees across the globe. PMI has been recognized by the Top Employer Institute for six consecutive years. This year, PMI was awarded with five regional certifications in Europe, the Middle East, Africa and, for the first time, in North America and Latin America. Additionally, Indonesia was the first PMI affiliate to be certified in Asia. “It is a proud moment for all of us at PMI,” said Charles Bendotti, PMI Senior Vice President, People and Culture. “Our success as a company relies on the men and women who come to work every day with a passion to achieve, and a willingness to learn, grow, and
Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.Tutustu uutishuoneeseemme