Nearly half (48 per cent) of the survey’s more than 200 respondents said that Asia-Pacific is the key region for investment, with China and India leading the way. Confidence among respondents from the rail and aviation industries was high, with 92 per cent and 77 per cent respectively saying market conditions are positive. The shipping industry was far less optimistic because of over-capacity in many areas, with only 15 per cent viewing market conditions as positive.

Just over half of respondents saw the global economic slowdown as the greatest threat to the industry, although most still felt the transport sector could expect to grow further over the next five years. Rising passenger numbers and freight volumes were anticipated by 73 per cent while a rise in the number of routes and services was anticipated by 52 per cent. 

Investment in technology is expected to rise, according to 67 per cent, with low carbon technology and predictive analytics ‘expected to represent the most significant driver of change in the transport sector over the next five years.’

But infrastructure remained a key theme: ‘For the aviation, rail and road industries, inadequate infrastructure is seen as the greatest challenge to the operational efficiency of their industries,’ said the report. Infrastructure investment, on the other hand, was seen as the most helpful form of government support.

‘Bank debt, capital markets and private equity will represent transport businesses’ main sources of funding over the next two years, and 74 per cent of respondents expect the availability of funds to stay the same, or even increase, over the next five years.’

Harry Theochari, global head of transport at Norton Rose Fulbright, commented: ‘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.

‘Sentiment is high in the aviation and rail industries, buoyed by the expectation of increased passenger numbers. However, shipping continues to feel the effects of over-capacity in many markets, and an increase in enforcement actions is widely predicted, although in the longer term respondents believe conditions will improve.

‘Investment in infrastructure and technology, and consolidation through both M&A and joint ventures, will be key drivers for transforming the transport sector and assisting growth.

‘The adoption of new technology in particular will help to address numerous issues the sector has been grappling with in recent years, such as low carbon technology to meet increasingly stringent environmental legislation, and predictive analytics to anticipate repairs and maintenance and better understand and forecast consumer behaviour.