The investment market for transportation infrastructure assets is having a moment of sorts. Long considered a stable, defensive sector with relatively slow-moving drivers, investors are instead being drawn instead to opportunities created by years of volatility in trade and geopolitics. At the same time, there is also undeniable, near-universal physical degradation of transportation assets in the United States that seems to be reaching a tipping point. Investment managers in the sector say both trends will create compelling opportunities.
This diverse infrastructure subsector typically rests upon a well-organized and stable foundation. But since the pandemic, the market has been anything but stable. The pandemic exposed fragile global supply chains, crippled aviation traffic and triggered severe shipping volatility. As markets recovered, rising geopolitical tensions, trade policy volatility and reshoring efforts threw the market in yet more unexpected directions.
Edwar
