UK transport infrastructure investment predicted to reach unprecedented levels

Published at 09:53 AM on 02 October 2015

  • Rail and airports infrastructure investment will almost double by 2025

UK transport infrastructure investment is projected to increase at an average annual rate of about 5% between 2014 and 2025, according to analysis released today by PwC.

The analysis on transport infrastructure spending to 2025, for which Oxford Economics provided research support, estimates the scale of current transport infrastructure investment and assesses the prospects for future investment from now to 2025.

Rail infrastructure and airports investment will almost double by 2025, with growth rates of over 6% per annum respectively.

Investment in sea ports is predicted to grow by 1.83% on average per year over the forecast period (compared with 5.8% growth in sea port investment worldwide), while road network investments are expected to slow down to an annual growth rate of 0.17%.

PwC / Oxford Economics Transport Infrastructure Spending to 2025

2014
US$

(GBP)

2025
US$

(GBP)

Road network (including bridges and tunnels)

4.789bn

(£3.15bn)

4.877bn

(£3.21bn)

Railroad network (including stations and terminals)

12.286bn

(£8.09bn)

23.525bn

(15.49bn)

Sea Ports

0.495bn

(£0.33bn)

0.604bn

(£0.4bn)

Airports

3.855bn

(£2.54bn)

7.232bn

(£4.76bn)

UK Total Transport Infrastructure Spending

21.425bn

(£14.11bn)

36.238bn

(£23.86bn)

Neil Broadhead, UK capital projects and infrastructure leader at PwC, commented: 

“Transport infrastructure investment growth in the UK will likely be moderate in the near future, given the already well-developed transport network as well as continuing fiscal constraints and a high demand for more social infrastructure, especially in healthcare.Neil Broadhead, UK capital projects and infrastructure leader at PwC, commented: 

“However, rail investment in the UK is poised for growth with railways forecast to have strong growth. There is growing opinion in favour of public transport in the UK and high-speed networks are expected to undergo further development.

“Coordination of the skills base and supply chain in such complex infrastructure programmes can be difficult. In the High Speed 2 and Network Rail electrification programmes, for example, there are concerns about whether the UK has sufficient skills in terms of design, engineering and construction as well as project management resources to deliver and meet investor expectations.

“Our forecasts present a positive picture of a growing market for transport infrastructure, but it is important to ensure that this money is invested carefully and wisely, delivering increasing value to the funders, including all of us as users, taxpayers or investors.”

ENDS

Notes to Editors

For a copy of the report, please contact [email protected] 

About the report

This report from PwC, with research by Oxford Economics, is part of an overall package of materials that provides the first consistent data analysing projected capital project and infrastructure spending across the globe. For investors, public officials and companies planning capital investments, it highlights the sectors and countries expected to benefit from this investment resurgence. And it provides insight into the factors driving the expected investment growth. In developing this analysis, Oxford Economics used data sets to provide consistent, reliable, and repeatable measures of projected capital project and infrastructure spending by sector and country. Historical spending data is drawn from government and multinational organisations' statistical sources. Projections are based on proprietary economic models developed by Oxford Economics at the country level. The results for this report have been estimated using the following underlying data sources: World Health Organisation, UNESCO, World Bank, Annual Capital Expenditures Survey, Association of American Ports, Edison Electrical Institute, Office of Highway Policy Information, Federal Highways Authority, Department of Transportation, National Clearinghouse of Educational Facilities, Department of Education and Oxford Economics. The analysis, completed over the first half of 2015, incorporates all available information at that time.

About PwC

PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 200,000 people who are committed to delivering quality in assurance, tax and advisory services. Find out more and tell us what matters to you by visiting us at www.pwc.com 

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© 2015 PricewaterhouseCoopers. All rights reserved.

Hilary Downes
PwC | Manager - Communications
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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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