Transportation & logistics

Transportation & logistics

Brian Molefe, Group Chief Executive, Transnet SOC Ltd.

Transportation & logistics CEOs have some big worries, like transport infrastructure readiness, but they’re more optimistic in this year’s CEO Survey. They’re focusing on developing a strong workforce, where they need it, but talent strategies will need to keep up. And they’re improving their environmental footprint too.

Transportation & logistics CEOs are still cautious 
Over the past several years, transportation & logistics CEOs have consistently been less optimistic about future revenue growth than their peers across the overall sample. That’s true this year too. But they see the economy coming back on track. Confidence is still notably up compared to last year. And sector CEOs' dim view of the global economy has gotten better, with 45% believing it will improve.

They’re looking where growth will be 
T&L CEOs are much more worried about sluggish growth in the advanced economies than about a slowdown in emerging markets – that differs from the overall sample, where they worry about both nearly equally.  But sector executives are already looking at making the most of growth markets. More transportation and logistics CEOs are targeting new growth markets in CEE, Latin America and Africa for next year’s M&A activities, joint ventures and strategic alliances.

Concerns around energy costs and infrastructure stand out 
It’s not surprising that T&L CEOs continue to worry about high or volatile energy costs. Last year, 61% of T&L CEOs were somewhat or extremely concerned about energy costs. This year that figure has jumped to 76%. As in previous years, transport infrastructure is a key area of concern. 56% of T&L CEOs worry that basic infrastructure isn’t adequate.

Workforce issues are looming large 
T&L CEOs overwhelmingly agree they’ll need to change their talent strategies to cope with future trends like demographic changes and urbanisation. But just 19% are already doing so, compared to a third of CEOs across the overall sample, and only 30% believe their HR departments are well-prepared.

And so are environmental concerns
Nearly all T&L CEOs (88%) agree or agree strongly that it’s important for their company to try and reduce their environmental footprint.

34%of T&L CEOs who are planning a deal in the next year are targeting Western Europe.

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88%of T&L CEOs agree it’s important to measure and reduce their environmental footprint.

 

Transportation & logistics CEOs are worried about a wide range of business threats, with energy costs at the top of the list

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CEO interview quotes

"Shipping is a global business interconnected with commercial activity which is relevant to the developments of the global economy. In essence, shipping is an early indicator of economic activity. If there is a recovery in shipping, you can expect a recovery of the economic activity and vice versa."

Angeliki Frangou
CEO & Chairman, Navios Group of Companies

"The economic risk is always the availability of infrastructure or the unavailability of infrastructure. There is a lot of talk about how to improve infrastructure for manufacturing on the continent.
We think that if infrastructure never develops, or if infrastructure is not made available as a matter of urgency, then there is a big risk that many opportunities will be lost on the [African] continent, and that growth will be slower than it could otherwise be."

Brian Molefe
Group Chief Executive, Transnet SOC Ltd.
South Africa

"On the demand side, the next big thing to impact our industry would be to see India becoming part of our economic world. The effect will be immense, considering that India is a large country, with a population of 1.2 billion people. This will be a new factor that would change the economic balance, the same way China did when it was admitted in WTO in 2001 and became irreversibly a part of world economic growth."

Angeliki Frangou
CEO & Chairman, Navios Group of Companies

"The way we want to expand into the African continent is by focusing on manufacturing, and producing goods that can actually be sold on the African continent for the railway business, as well as services for the ports business on the continent.
That is how we plan to move into the continent. That is where we see a big opportunity for our company."

Brian Molefe
Group Chief Executive, Transnet SOC Ltd.
South Africa

"If you think about railway people, in a lot of instances what they do today is what they have done for the last 30 years. And it is very difficult to bring change. So the biggest barrier for us is accepting and embracing change, and in fact playing an active role in making the change."

Brian Molefe
Group Chief Executive, Transnet SOC Ltd.
South Africa

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