Transportation developments such as Uber’s ‘flying cars’ or the Hyperloop could disrupt core transport systems and negatively impact concessions. Transport infrastructure stock will benefit from increased traffic, generating higher returns per invested road or airport infrastructure. Autonomous cars may shape traffic trends, for example by increasing the number of people travelling by car, with potentially more young, elderly or those without driving licenses using cars. Increased connectivity and globalization may boost the use of airports and planes, and airports may need to increase capacity to accommodate more passengers.

Company specific thoughts:

None of the stocks under review are conspicuously ahead or behind. Those offering automated toll collection are in a good position and most toll road concession managers have implemented such systems. Equally, efficient security facilities are a plus at airports.


Industrials: Up close

The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.