Market Trends of Infrastructure Sector In Asia Pacific Industry
Increasing Investments in Transport Infrastructure Sector
Japan, renowned for its cutting-edge transportation infrastructure, is making bold moves to secure financing for its long-term infrastructure needs. The nation boasts an extensive high-speed railway network, the Shinkansen, alongside well-maintained roads and efficient airports. Ongoing investments aim to expand and modernize these systems. Tokyo's Haneda and Narita airports are undergoing significant expansions and renovations to better accommodate rising air traffic and tourism. Enhancements focus on upgrading passenger facilities and boosting runway capacity. To tackle a truck driver shortage, Japan plans to build an automated cargo transport corridor, dubbed the "conveyor belt road," stretching from Tokyo to Osaka. Set to begin trial runs soon, the corridor anticipates full operations by the mid-2030s. This state-of-the-art corridor will feature unmanned, automated transport systems, seamlessly linking airports, railways, and ports.
Under the "Parvatmala Pariyojana" National Ropeways Development Programme, the Government of India has announced more than 200 projects, with a total allocation of INR 1.25 lakh crore (USD 14.77 billion) for the upcoming five years. In 2024, the Union Cabinet has approved INR 4,406 crore (USD 0.52 billion) initiative aimed at constructing 2,280 km of roads in the border areas of Punjab and Rajasthan. In India, roads & highways dominate the transport sector, followed closely by railways and urban public transport. The government has set ambitious targets for the transport sector, including the development of a 2 lakh-km national highway network by 2025 and expanding the number of airports to 220. Additionally, plans include operationalizing 23 waterways by 2030 and developing 35 Multi-Modal Logistics Parks (MMLPs). The total budgetary outlay for infrastructure-related ministries increased from around INR 3.7 lakh crore (USD 43.74 billion) in FY23 to INR 5 lakh crore (USD 59.11 billion) in FY24, presenting investment opportunities for the private sector across various transport sub-segments.
China Infrastructure is Witnessing Significant Growth
As 2023 concluded, rural roads in China spanned a total of 4.6 million kilometers. Of these, paved roads stretched across 4.22 million kilometers, making up 91.8% of the total rural road network. This marks a significant rise of 27.2% over the last decade. Furthermore, paved roads have been established in approximately 30,000 towns and townships, as well as in over 500,000 administrative villages, underscoring the growing accessibility in rural regions.
China's latest renewable energy initiative sets bold consumption targets for 2025 and 2030. Departing from earlier plans that centered on merely installing capacity, this new approach prioritizes enhancing the utilization of renewable energy. This will be achieved through upgrading infrastructure and integrating renewables across various sectors, such as transportation, agriculture, and manufacturing. As a result of this strategic pivot, significant business prospects are anticipated in green technologies, grid modernization, and the broader clean energy arena
However, in 2024, China scaled back infrastructure spending in 12 regions grappling with heightened debt-servicing challenges. The central government is prioritizing the containment of local-government debt risks. Earlier this year, the central government directed these 12 regions to either delay or halt specific government-led infrastructure initiatives, aiming to mitigate their escalating debt challenges.
