This EIU report discusses how transport infrastructure, policies, and technology can help to ensure efficient transport on a sustainable basis in the years to 2030.
Beyond the positive macroeconomic effects of ensuring sustainable transport, there is an impact on the profitability and long-term viability of companies that CFOs should consider.
- Companies expect their congestion-related costs to keep rising. The business costs associated with blocked traffic include lost time, wasted fuel, forgone business, and a need for increased inventories and storage space. Companies expect these costs to continue to rise.
- The cost of transport itself is also expected to increase. Both business and government officials expect that users will pay higher road and rail charges in the decades ahead, to cover the costs of new infrastructure. Tighter environmental rules will further raise the cost of transport. The higher costs of both congestion and road/rail use will prompt companies to pay closer attention to transport and logistics when choosing operating sites.
- Firms are finding inventive ways to squeeze more out of existing infrastructure. Executives point to a range of strategies to cope with congestion, including tightening supply chains, co-ordinating shipments with suppliers and customers, and increasing night-time deliveries. In addition, logistics providers and road and rail operators are increasingly using IT systems to navigate around blockages and improve traffic flow.