Summary

Asia Pacific is the region showing the greatest benefit from infrastructure improvement (10 per cent to Africa’s 9 per cent), and 16 per cent of respondents from the region report opportunities arising from the availability of funding for investment and/or growth.

Outside interest in the region is variable. While China is still regarded as the number one investment opportunity (albeit with some drop-off), countries such as South Korea, Japan, Australia and New Zealand attract little interest outside of the region.

Investment opportunities

Investment within the region is going mainly to local markets. Australia and New Zealand draw highest interest from Asia Pacific respondents (7 per cent), but low interest from Middle East and Europe respondents.

Outside investment is focused on China, which respondents still consider one of the top three regional investment opportunities over the next five years (30 per cent). This is a drop from its 2010 high of 43 per cent, but both shipping and aviation continue to cite China as their most important market, with South East Asia as a whole ranking second for aviation.

Interest in India has noticeably waned – from 31 per cent in 2010 to 12 per cent in this survey – while South Korea (at 2 per cent) and Japan (at 3 per cent) are viewed as least attractive, similar to 2010. Australia and New Zealand also fare badly as outside investment options.

Funding

As elsewhere, pricing and liquidity/ availability of money are the two greatest concerns, with increased security/ guarantee requirements coming in third.

The need for a change in the view of asset values is popular in this region (16 per cent), as is support for specialist transport funding institutions.

The next five years

This is one of three regions (along with Africa and Central and South America) where respondents anticipate increased joint venture/alliance/pool activity. Conversely, there is little support for the view that there will be a withdrawal of established participants.

In the next five years, nearly half of the respondents surveyed in the region (49 per cent) predict that investment funds will be redirected to running costs (up from 37 per cent in the 2010 survey).

As with other regions, fuel price/economy is a major concern, with regulatory and environmental controls coming second at 14 per cent. Respondents from this region (9 per cent) also show a significantly higher concern over associated benefits from fuel choice than other regions (along with Middle East counterparts).

Asia Pacific respondents are generally positive about high-speed/high-capacity assets and 29 per cent believe such assets represent natural and beneficial development; however, 21 per cent also doubt their sustainability. Generally, respondents in this region show markedly less interest in technological improvements (2 per cent) than those from all other regions.

The greatest challenge for the region is cited as a lack of suitably qualified people (21 per cent).