KPMG recently launched a brief report on Merger and Acquisitions trends in transport infrastructure, as well as looking at the opportunities and challenges facing the GCC railway projects.
Andrew Robinson, Head of Transport and Leisure for KPMG Lower Gulf said “this report focuses on two current issues that are facing the transport sector. It firstly analyzes the trends in transport infrastructure and how the transactions in the sector are gaining importance. Secondly, it looks at the vast opportunities that the rail development in the Middle East is presenting to potential investors.”
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.”
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The views and opinions expressed herein are the personal opinions of the interviewees and authors based on their personal experience working as Auditors in the industry and do not necessarily represent the views or opinions of KPMG International or any KPMG member firm.