Transportation infrastructure comprises physical assets that allow for the movement of goods and people, and are essential to global economic health and future growth. In this article, we focus on the rail freight, passenger rail services, and highways and railways sectors. Many of these assets are typically regulated, or operate under long-term concession agreements, where the operator has the right to receive cashflows from the asset for a set duration, before returning the asset back to the government. Most transportation type assets achieve inflation, or inflation plus pricing, through regulation, or through market adjustments.
The McKinsey Institute estimates that $60 trillion is required to fill global infrastructure investment needs in the next 15 years. Transportation is estimated to take up more than 30 percent of this total, or approximately $20 trillion. To even get close to this figure will require a tremendous effort from governments and the global investment com