In-depth analysis of a single current issue that is relevant for investors, and provides high-conviction tactical views, both directional and relative value.
Drawing upon our global economic and industry expertise, Oxford Economics is exceptionally well-placed to support clients with interests in infrastructure assets.
We have broad capabilities across a range of infrastructure projects in key sectors, and can provide bespoke analysis to support clients’ business and financial projections. In addition to helping governments and investors with the privatisation process, we can also offer investors ongoing support to help them assess the performance of their assets.
How we support the clients with infrastructure assets
Support with transaction due diligence. Working on both the buy and sell side of transactions to produce bespoke forecasts from the macro level through to detailed local/sector/commodity level as part of the due diligence process for assets.
Ongoing validation of management projections (red flag reviews). Providing assurance to asset owners over the forecast projections received from management or providing supplementary forecasts and analysis as part of Key Performance Indicators for the asset.
Test strategic planning (e.g. investment plans, regulatory analysis). Scenario analysis and business plan stress testing helps inform the strategic outlook for the asset and possible sale decisions.
Benchmarking the performance of infrastructure assets. Comparing your assets expected performance relative to similar assets at a country, regional or global level.
Forecast data and models
- Long-term country, industry, and location projections. Forecasts to 2050 for 200+ countries, more than 100 industrial and service sectors, and 7,000+ city and regional locations around the world.
- Detailed demographic forecasts that can be used to predict demand for services, with population trends by gender and age group for 200 countries and each city and regional location.
- Modelling and scenario development. Our linked macro, industry, and city models provide a framework for forecasting trends out to 2050 and beyond.
- Unique forecasts for tourism and travel. Market trends and forecasts for travel on a national and city level, and for major air travel routes.
Appetite for investment in infrastructure has grown significantly as the low-yield environment and volatile financial markets have driven investors to examine alternatives to financial assets. Infrastructure assets can offer long-term, stable cash flows, generally with low volatility compared to other asset classes. At the same time, governments have increased their reliance on private sector funds and public markets to fund the core infrastructure that countries need to support and sustain economic growth. We have significant experience of supporting clients on a range of infrastructure projects: - Transport: Airports, seaports, roads, railways. - Utilities: Electricity, gas, telecommunications, water, postal services. - Social: Education facilities, hospitals and other community facilities.
PORTS We have significant experience of producing projections of port throughput. Our forecasts of seaborne cargo flows are built on the outlook for individual commodity flows and constructed using a combination of econometric techniques and bottom-up analysis to ensure robust and dependable projections for all seaborne cargo types.
We can also construct cargo forecasts consistent with alternative economic scenarios to help clients to understand potential risks.
Clients: Ports of Los Angeles and Long Beach, Port of Melbourne, Mitsubishi Corporation, Anglo Swiss Maritime, British Ports Association, European Community Ship-owners Association.
AIRPORTSWe can combine our existing forecasts for air passenger flows with bespoke projections of air freight for an airport, and then translate this into fees and operating costs in addition to producing scenarios to better understand expansion options.
Working with IATA we already produce the most comprehensive assessment to date of how air travel markets will evolve during the early years of the second century of commercial flight.
Clients: Civil Aviation Authority of Singapore, Heathrow Airport, Stansted Airport, British Airways, IATA, Transport for London.
UTILITIES We have developed bespoke sector-level models for electricity, gas and water demand incorporating a broad range of relevant data and forecasts, including factors such as economic activity, temperature, regulation and policy, and technological innovation.
With consideration of the legislative and regulatory environment, our consultants can help you develop strategic investment plans that will help you to thrive in a difficult business environment.
Clients: Aggrekko, National Grid, Severn Trent Water, Abu Dhabi Regulation and Supervision Bureau.
COMMODITIES We have extensive experience in constructing alternative scenarios that look at different demand and supply drivers for fossil fuels, driven by both macroeconomic fundamentals and policy decisions. Outputs from these scenarios include new equilibrium prices, demand and supply by commodity.
If required we can also construct individual supply curves at the mine/plant level to assess the impact of alternative macro scenarios at the individual asset level.
Clients: OPEC, EU Commission, various government departments.
OTHER INFRASTRUCTURE AND STATE ASSETS We can also support firms and government across a wide variety of more general infrastructure or state owned assets including telecoms, postal services, land registries, roads, toll roads, bridges, and pipelines.