Infra 2009 - Apresentação Steve Filipov - Terex Brazil Infrastructure Conference
-
Upload
projectlab-centro-de-competencia-em-gerencia-de-projetos -
Category
Documents
-
view
216 -
download
0
Transcript of Infra 2009 - Apresentação Steve Filipov - Terex Brazil Infrastructure Conference
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
1/48
Developing MarketsInfrastructure Activity in
Economic Crisis
Steve Filipov
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
2/48
2
Pace of economic development is directly impacted by the on-going financial crisis but long-term, underlying drivers remainintact
Infrastructure investment has been slowed in places but, on-balance, continues despite (if not because of) the economiccrisis
Infrastructure opportunities are global but, near term, will bestrongest in countries who have the fiscal capacity and the
policy mindset to fund aggressive stimulus Global infrastructure is an important opportunity for companys
like Terex who have a portfolio of capabilities and the ability toexecute globally
Key Messages
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
3/48
3
What is a Developing Market?
-5%
0%
5%
10%
15%
($10) $0 $10 $20 $30 $40 $50 $60
GDP/Capita
(i.e., prosperity)
0607 Growth inReal GDP/Capita
(i.e., development)
DevelopedDeveloping
W. Europe N. America ANZ
Japan Asia E. Europe Latin America
M. East Africa
LowGrowth
ModerateGrowth
High Growth
$25k/head
Source: Analysis of data from the Economist eiu; Bubbles represent countries. Bubble size is proportioned to country GDP
China
US
India
Russia
Brazil
A DEFINITION
Low but increasingprosperity
Increasing constructionspending
Increasing commodityconsumption
Conditions favoringsustained, long-term growth
Mexico
Poland
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
4/48
4-10%
-5%
0%
5%
10%
15%
($10) $0 $10 $20 $30 $40 $50 $60
What is a developing market?
GDP/Capita
(i.e., prosperity)
08 09 Growth inReal GDP/Capita
(i.e., development)
DevelopedDeveloping
W. Europe N. America
ANZ
Japan
Asia E. Europe
Latin America
M. East
Africa
LowGrowth
ModerateGrowth
High Growth
Clearly a more challenging
new eraat least for now
Global crisis has hit allmarkets - some developingmarkets have been hitparticularly hard
Much depends on the
ability of governments torespond and respondeffectively
Infrastructure is both animportant lever and animportant long-term priority
$25k/head
Source: Analysis of data from the Economist eiu; Bubbles represent countries. Bubble size is proportioned to country GDP
China
US
India
Russia
Brazil
Mexico
Poland
Japan
What is a Developing Market?
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
5/48
5
Situation by Market (BRIC)
-18.0%
-14.0%
-10.0%
-6.0%
-2.0%
2.0%
6.0%
10.0%
14.0%
18.0%
'97'98'99 '00 '01'02 '03'04 '05'06 '07'08'09 '10
CHINA
-18.0%
-14.0%
-10.0%
-6.0%
-2.0%
2.0%
6.0%
10.0%
14.0%
18.0%
'97'98'99 '00 '01'02 '03'04 '05'06 '07'08'09 '10
INDIA
-18.0%
-14.0%
-10.0%
-6.0%
-2.0%
2.0%
6.0%
10.0%
14.0%
18.0%
'97'98'99 '00 '01'02 '03'04 '05'06 '07'08'09 '10
RUSSIA
-18.0%
-14.0%
-10.0%
-6.0%
-2.0%
2.0%
6.0%
10.0%
14.0%
18.0%
'97'98'99 '00 '01'02 '03'04 '05'06 '07'08'09 '10
BRAZIL
History + Jun 08 Forecast Feb/ Mar 09 ForecastReal GDP Growth:
Situations range fromtroubling (China) todownright grim (Russia)
China is best positioned butwill deteriorate if growthslows further
India faces significantchallenges struggling togrow, despite governmentintervention
Sharply lower outlooks inBrazil, as industrialconditions weaken andconsumption slows
Russia has been hit hardand continues to fightdownward pressure on itscurrency, as it struggles torestore economic growth
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
6/48
6
What has Changed?
1. Global economic expansion has clearlyexperienced a set-back
2. All notions of decoupling look ridiculous in
hindsight the world is as connected as ever,perhaps more so
3. Risk level is clearly elevated and will remain thatway until the flow of global capital is restored
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
7/487
What hasnt Changed?
1. The pursuit of greater prosperity continues
2. The path to prosperity remains clear: Solid foundation for economic activity (i.e., infrastructure)
Well functioning economic and regulatory frameworks Governments that are free of corruption and allow every
individual to advance according to their abilities
1. There is no free lunch If it seems too good to be true, it still is Nothing lasts forever
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
8/488
What is being done? (G20)
Source: Brookings Institution
Large Stimulus Plan Modest Stimulus Plan Small Stimulus PlanLarge Stimulus Plan Modest Stimulus Plan Small Stimulus Plan
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
9/489
Stimulus by Market (G20)
Excludes infrastructure that was already planned
Source: Brookings Institution + Terex analysis
Country 2009 Spending Total % of GDP ('09) % of GDP (total) Emphasis
Saudi Arabia 17.6$ 49.6$ 3.3% 9.4% Education, Infrastructure
USA 268.0$ 841.0$ 1.9% 5.9% Infrastructure, Social Programs, Tax Cuts, Bailouts
China 90.0$ 204.0$ 2.1% 4.8% Infrastructure/ Reconstruction, Social Programs
Spain 18.2$ 75.3$ 1.1% 4.5% Tax Cuts, Mortgage Relief, Infrastructure, Auto Industry
Germany 55.8$ 130.4$ 1.5% 3.4% Tax Cuts, Infrastructure, Auto Industry
Canada 23.2$ 43.6$ 1.5% 2.8% Tax Cuts, Housing, Infrastructure, Social Programs
Korea 13.7$ 26.1$ 1.4% 2.7% Infrastructure, Tax Cuts, Industry Support
S. Africa 4.0$ 7.9$ 1.3% 2.6% Infrastructure, Social Programs
Indonesia 6.7$ 12.5$ 1.3% 2.4% Tax Cuts, Infrastructure, Fuel and Power SubsidiesJapan 66.1$ 104.4$ 1.4% 2.2% Tax Cuts, Tax Refunds, Earthquake Proofing
Australia 8.5$ 19.3$ 0.8% 1.8% Tax Refunds, Infrastructure, Tax Cuts, Job Creation
Russia 30.0$ 30.0$ 1.7% 1.7% Corporate Tax Relief
United Kingdom 37.9$ 40.8$ 1.4% 1.5% Tax Cuts, Capital Spending, Social Programs
Argentina 4.4$ 4.4$ 1.3% 1.3% Loan Subsidies, Infrastructure
Mexico 11.4$ 11.4$ 1.0% 1.0% Price Supports, Layoff Prevention, Infrastructure
France 20.5$ 20.5$ 0.7% 0.7% Tax Relief, Auto/ Other Industrial Support, Infrastructure
Brazil 5.1$ 8.6$ 0.3% 0.5% Tax Cuts
India 6.5$ 6.5$ 0.5% 0.5% Financial System, Infrastructure Loan Guarantees
Italy 4.7$ 7.0$ 0.2% 0.3% Tax Cuts, Social Programs
Turkey -$ -$ 0.0% 0.0% Negotiating with the IMF
Total 692$ 1,643$ 1.7% 4.8%
Incremental Spending on Economic Stimulus by Country: G20, $B
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
10/4810
Infrastructure as a priority
Infrastructure as Economic Stimulus
The story remains the same: the globaleconomy Is running a major infrastructuredeficit as the cost of decades ofunderinvestment is now surfacing.Whats changing are the numbers.Estimates regarding the demand forinfrastructure money are revised upward
almost on a daily basis.The latest estimate suggests that theglobal economy will see between $25 and$30 trillion of fresh infrastructureinvestment in the coming two decades.In the US, we will see close to $150billion a year of new infrastructureinvestment in coming decade, in Europeroughly $300 billion a year and in China,no less than $200 billion a year.Roughly 40% of this money will go totransport and almost one-third to powerfacilities (see chart)
Source: CIBC World Markets
B
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
11/4811
China
XINJIANG
QINGHAI
NEI MONGOL
GANSU
NINGXIA
SHAANXIXIZANG
SICHUANCHONGQING
YUNNAN
GUIZHOU
GUANGXI
HAINAN
TAIWAN
HUNAN JIANGXIZHEJIANG
FUJIAN
GUANGDONG
HONG KONGMACAU
Shanghai
SHANGHAI SHI
Guangzhou
Chengdu
JIANGSU
ANHUIHUBEI
HENAN
SHANXI
SHANDONG
Beijing
ShenyangHEBEI
BEIJING SHITIANJIN
LIAONING
JILIN
HEILONGJIANG
POPULATION BYREGION (08): 1.3 B*
ShanghaiInland(28%)
GDP BY REGION(08): $ 4.6 T*
Bohai
(18%)Southeast(23%)
NorthCentral(10%)
SouthCentral(15%)
Northeast (5%) West (2%)
* Hong Kong, Macau, and Taiwan are not considered part of China above see Southeast Asia
ShanghaiInland(32%)
Bohai(24%)
Southeast(23%)
North Central (8%)
South Central (8%)
Northeast (4%) West (2%)
21 % of world population but only 7 % of global GDP as of 2008
Most of the current economy is centered in three regions along theeastern coast of the country
Consumption in these three regions also drives the economies furtherinland, where much of Chinas agriculture and commodity industries arecentered
Major investments in infrastructure continue to drive strong economicgrowth, with maturity of the Chinese economy not likely until after 2030
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
12/4812
China Infrastructure
CHINAS 4T RMB ECONOMIC STIMULUS TARGETING INFRASTRUCTURE (NOV. 2008)
Transportation/Electricity
(1.8T, 45%)
EarthquakeRebuilding
(1T, 25%)
RuralInfrastructure
(.37T, 9%)
Environment
(.35T, 9%)
Welfare Housing
(.28T, 7%)
Independent Innovation
(.16 T, 4%)Healthcare/ Culture
(.04 T, 1%)
~1/3 is new spending
Also, confirms commitmentto previous projects
0%
10%
20%
30%
40%
50%
60%
China
Russia
India
Japan
Brazil
Saudi
S.
Africa
Germany U
KUS
RESERVE TO GDP RATIO (2008)
0%
20%
40%
60%
80%100%
120%
140%
160%
180%
China
Russia
India
Japan
Brazil
Saudi
S.
Africa
Germany
UK
US
DEBT TO GDP RATIO (2008)
Capacity for more
Capacity
for more
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
13/4813
China Example
Source: Public Source
China Strategic Project: Earthquake Rebuild
Total Investment: $235 Billion in total
Covered area of 132,596 square km,
population of 19.8 Million
Includes earthquake rebuild, new
infrastructure, tourism and other projects
that is beneficial to regional economicdevelopment
Key Facts
Sample of Projects
Dujiangyan-Yingxiu Expressway Rebuild: 1B
Qingchuan County rebuild: 0.6B
Beichuan County rebuild: 1.6B
Quang minority cultural site building: 1B
Jiulongmen international tourism site: 6B
Chengdu International Logistic Park: 2.8B
Earthquake Museum: 0.39B
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
14/4814
China Example
Source: Public Source
China Strategic Project: Beijing-Shanghai High Speed Railway
Total Investment: $32.3 Billion
Total Length: 1318 KM, 21stations including
Beijing, Tianjin, Jinan, Bengbu, Nanjing,
Wuxi, Jiangsu and Shanghai.
Designed speed: 350 km/h 5 hours from
Beijing to Shanghai Construction period Commencement on
April 2008, put into operation in 2010
Key Facts
Equipments & Contractors
$4.4 Billion budget for purchasing
construction equipment
China Railway Engineering Co.: 40% of
the total construction
China Railway Group: 26% of the total
Sino-Hydro: 17%
China Communication Construction: 16%
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
15/48
15
China Example
Source: Public Source
China Strategic Project: West to East Power Transmission
Total Investment: Over $77.4 Billion
3 Channels: North line from InnerMongolia and Shaanxi to North China;Central line form Sichuan to Central
and East China; South line fromYunnan, Guizhouand Guangxi toSouth China
Covered areas:Guizhou, Yunnan,Guangxi, Sichuan, Inner Mongolia,Shanxi, and Shaanxi Transmissionarea: Guangdong, Shanghai, Jiangsu,Zhejiang, Beijing and Tianjin.
Construction period: 2001-2010
Key Facts
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
16/48
16
China Example
Source: Public Source
China Strategic Project: South to North Water Diversion
Total Investment: $71.4 billion
Project Scope:
East-line-from low reach of YangtzeRiver to Tianjin of 1,156km.
Mid-line-from middle reaches ofYangtze River to Beijing and Tianjinof 1,267km.
West -line-transfer the water fromupper reaches of Yangtze River toupper reaches of Yellow River.
East line and Mid line has started
construction. The approvedinvestment for the first phasereached 254.6 billion Yuan
4.16 Billion RMB for East line and18.23 Billion for Mid line has alreadybeen invested in December 2008
Key Facts
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
17/48
17
Terex and China Infrastructure
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
18/48
18
PAKISTAN
CHINA
BANGLADESH
PRADESH
ASSAM
Chandigarh
New Delhi
Indian claim
Gangtok
JHARKHAND
GUJARAT MADHYA PRADESH
RAJASTHAN
ANCHAL
PRADESH
BIHAR
UTTAR
DELHIHARYANA
NEPAL
NAGALAND
ARUNACHAL
MEGHALAY
UTTAR-
KASHMIR
HIMACHAL
PRADESH
BURMA
MIZORAM
Rangoon
LAKSHADWEEPKERALA
TAMIL NADL
Mumbai
Bangalore
KARNATAKA
MAHARASHTRA
GOA
ANDHARPRADESH
ORISSA
JAMMU AND
CHHATTISGARAH
WEST
(Bombay)
BENGAL
POPULATION BYREGION (08): 1.3 B*
North(31%)
GDP BY REGION(08): $ 1.2 T
West(20%)
South(21%)
East(24%)
Northeast (4%)
17% of world population but only 2 % of global GDP as of 2008
Economic activity is fairly evenly distributed but heavily concentrated nearmajor cities
Tier 2 cities are rapidly emerging centers for investments
Recent high rates of growth are slowed by the financial crisis but aboveaverage growth is expected to continue long-term as more of India enters themodern world
North(28%)
West(26%)
South(26%)
East(17%)
Northeast (3%)
India
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
19/48
19
300 PPP projects, across sectors, are at various stages
of implementation, with total project costs currentlyassessed at around USD 21.33 B
India Infrastructure
Sector No of projects Project costs (M $)
Airports 6 4,008
Energy 32 3,560
Ports 38 2,763
Roads 186 9,511
Railways 3 201
Urban development 35 1,287
Total 300 21,330
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
20/48
20
Indian ports to be modernized to handle increased
load with additional investments from private and public sectorsUnder consideration:
Mumbai, Chennai P&O terminal, Jawaharlal Nehru Port TrustEnore, Mundhra and Pipavav
India Example
Planned Capex(11th Five Year Plan) Total % Major Ports Non Major Ports
TotalInvestment
$18,266 M 100% $11,080 M $ 7,186 M
Thru Pvt Sector $12,156 M 67% $7,373 M $4,782 M
Thru Govt $6,110 M 33% $3,706 M $2,404 M
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
21/48
21
India Example
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
22/48
22
66,590 km of National Highways, with Govt
continuing its phased initiatives to upgrade and strengthenthem through the National Highway
Development project ( NHDP)
India Example
Phase Length (km) Estimated Cost Status
Phase 1 7,498 $ 6,000 M 95% complete
Phase 2 6,647 $ 6,868 M 70% complete
Phase 3 4,035 $ 10,867 M In progress
Phase 5 6,500 NA To be tendered
Phase 6 1,000 $ 3,336 M To be tendered
Phase 7 700 $ 3,336 M To be tendered
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
23/48
23
Kolkata Airport
Estimated Cost: $ 400 M
Completion: 2011
Est Passenger traffic: 20 M
Scope of Work: Extension ofsecondary runway, construction ofrapid taxiways and aprons, upgradation of air traffic management,brand new integrated terminal
building, communication,navigation and surveillancesystems
Chennai Airport
Estimated Cost: $ 360 M
Completion: 2011
Est Passenger traffic: 14 M
Scope of Work: Extension ofrunway, suitability for operationof larger aircraft , upgrade of airtraffic control systems andbrand new terminal building
India Example
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
24/48
24
Kashmir Railway Project
Route Length: 290 Km
Gauge: 1676 mm
Stations: 30
Scope: 158 Bridges, 20 tunnels
Longest tunnel: 11km
Max speed - 100km / hr
One bridge will be the highestrailway structure in the world.
India Example
http://www.railway-technology.com/projects/kashmir-railway/http://www.railway-technology.com/projects/kashmir-railway/kashmir-railway1.html -
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
25/48
25
Terex and India Infrastructure
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
26/48
26
Russia/CIS
Kyrgyzstan
Uzbekhistan
Russia
Kazakhstan
Turkmenistan
Georgia
Azerbaijian
Armenia
Ukraine
Belarus
Vistula
Lithuania
LatviaEstonia
POPULATION BYREGION (08): 285 M
GDP BY REGION(08): $ 2.2 T
Russia(50%)
Russia(74%)
WesternCIS (29%)
TheStans(21%)
WesternCIS (19%)
The Stans (7%)
4 % of world population and 4% of global GDP as of 2008
Prior to the global financial crisis, Russia was experiencing rapid growth as
the state utilizes natural resource wealth to modernize the economy withinfrastructure investment
Neighboring countries benefited from Russias growth and (in the WesternCIS) increasing trade with eastern and western European neighbors
Agriculture and commodities dominate the economies of The Stans,whose contribution to regional GDP is currently modest
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
27/48
27
The Federal Capital budgeting documents planned a 10x increase in
transport infrastructure spendingprior to any stimulus plan. Russian stimulus amounts to a 25% increase in Federal spending
However, Russian government response to crisis is to focus on supportingcompanies, potentially resulting in the delayof infrastructure investment
Transport Ministry announced on January 22 the establishment of theState Transport Leasing Company with authorized capital of RUR 40buillion ($1.2 bn) for the purpose of leasing approximately 10,000 units of
construction equipment from Russian manufacturers.
Federal Capital Budget for Transportation Infrastructure
1.314
13.484
0
2
4
6
8
10
12
14
16
2006-2010 2010-2015
RUR(
billions)
2,008 2,0312,313
2,210
2,572
3,987 3,993
3,3813,142 3,166
2,624 2,6952,984
2003 2004 2005 2006 2007
CONSTRUCTION AND RECONSTRUCTION OF AUTOMOBILE ROADS 2003-2015, KM
CAGR 6.4%
2008plan*
2009plan
2010plan
2011plan
2012plan
2013plan
2014plan
2015plan
*2008-2009 Targets of the Automobile roads 2006-2010; 2010-2015Targets of the Development of the Transportation System of Russia (2010-2015)
Updating of Transportation System of Russia (2002-2010) Development of the Transportation System of Russia (2010-2015)
Russia/CIS Infrastructure
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
28/48
28
Investment Fund spending (main source of infrastructure project
financing)is slashed by almost half in 2009 from approx.$3.6 B to $2 B
Federal projects of national importance are cut from 21 to 15, which willbe also financed from budget funds (approx. $11.3 B)
Despite Russias cut-backs, several major projects will continue:
The Western High-Speed Diameter road in St.-Petersburg The development of Lower Angara region
The building of transport infrastructure in the Chita region (Baikal region)
Oil refineries in Nizhnekamsk (Volga region)
Oil terminal in Ust-Luga (NW region)
Others
Event-driven projects in the region are also likely to continue, includinginvestments supporting the APEC Summit in 2012, the World UniversityGames in 2013, and the Sochi Olympics in 2014
Russia/ CIS Infrastructure
Source: RosBusiness Consulting
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
29/48
29
Contribution to the development of the Asian Pacific Economic
Conference in 2012 in the city of Vladivostok.
Location: Russia, Vladivostok, Russky IslandThe governance of Russian State institute of urban planning and investment developmentGiprogor (Russia). The total program includes:
Conference Center, International Press Center, Theatre and Opera House, Hotels, WorldTrade Center, Exhibition Center,Oceanografic Museum, Medical Center, Sports Facilities,Shopping Mall and Parking Facilities, the extension and reconstruction of new highways, theairport, and harbors.
APEC Summit 2012 (Vladivostok)
Russia/CIS Example
Source:http://www.royalhaskoning.ru/en-us/projects/Pages/VladivostokSD.aspx
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
30/48
30
Russia/CIS Example
Estimated budget: USD 8.6 B (Start 2009)
World University Games 2013 (Kazan)
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
31/48
31
Russia/CIS Example
48 sport facilities to be built
(in total about 400,000sqm)
5 new metro stations
Reconstruction of Kazan ring road and airport
World University Games 2013 (Kazan)
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
32/48
32
Russia/ CIS Example
Estimated Budget: USD 14 B (Start in 2009)
Olympic Stadium, (40 thousand seats) Curling Ice Arena (3 thousand seats) Olympic Skating Center (figure skating 12 thousand seats). Olympic Oval - Speed Skating Centre (8 thousand seats) Bolshoi Ice Palace Ice Hockey, 12 thousand seats Ice Arena - Ice Hockey (7 thousand seats)
Olympic Games 2014 (Sochi)
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
33/48
33
Russia/ CIS Example
Sport facilities 20 units
Roads 147,5 km
Motorway bridges and road interchanges 12 units.
Railway roads 88,6 km
Engineering infrastructure 55 units
Communication Facilities 10 units Heat generating stations 2 units.
Chain of powerplants 1 units.
Substations 11 units.
Substations to be refurbished 7 units.
High voltage power lines 550 km Environmental protection facilities 6 units
Hospitals 2 units
Hotels 33 units
Offices 1 units
Olympic Games 2014 (Sochi)
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
34/48
34
Terex and Russia Infrastructure
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
35/48
35
Latin America Situation
MEXICO
GUATEMALA
HONDURAS
EL SALVADORNICARAGUA
PANAMA
CUBA
THE REPUBLIC OFPUERTO RICO
COLOMBIA
VENEZUELA
BRAZIL
PERU
ECUADOR
GUYANA
SURINAME
FRENCH GUIANA
BOLIVIA
PARAGUAY
CHILE
ARGENTINA
URUGUAY
FALKLAND ISLANDS
TRINIDAD AND TOBAGO
COSTA RICA
POPULATION BYREGION (08): 570 M
GDP BY REGION(08): $ 4.1 T
Brazil(33%)
Central Am./N. South
Amer. (27%)
SouthernCone(21%)
Mexico
(19%)
Brazil(37%)Central Am./
N. SouthAmer. (20%)
Southern
Cone(18%)
Mexico(25%)
9 % of world population and 7% of global GDP as of 2008 Brazil and Mexico represent over 60% of regional GDP Recent political and financial stability in these and other countries
has enabled strong growth in the region High commodity prices and successful development of the
regions mineral and oil reserve also contributed
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
36/48
36
Brazil Infrastructure
Infrastructure
Credit and financingpromotion
Enhancing theinvestment climate
Tax exemptions /
improvement of the tax
system
Long-term fiscal
measures
A Five-Pillar Programme
PACGrowth Acceleration Project
* USD Exchange rate asof March18, 2009
Until 2010 After 2010
US$ 221 BTotal investment
PAC investments represent1.2% of Brazils GDP
*Theoriginal budgetuntil2010 wasUS$ 221,9 bi,but was recentlyupdated * Source:www.brasil.gov.br/pac
Infrastructure
Credit and financingpromotion
Enhancing theinvestment climate
Tax exemptions /
improvement of the tax
system
Long-term fiscal
measures
A Five-Pillar Programme
PACGrowth Acceleration Project
* USD Exchange rate asof March18, 2009
Until 2010
US$ 285 B*After 2010Total investment
US$ 506 B
PAC investments represent1.2% of Brazils GDP
12%
22%66%
Logistics
Energy Social and Urban
12%
22%66%
Logistics
US$ 58.2 B
Energy
US$ 334.4 B
Social and Urban
US$ 113.1 B
*Theoriginal budgetuntil2010 wasUS$ 221,9 bi,but was recentlyupdated * Source:www.brasil.gov.br/pac
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
37/48
37
Brazil Examples
Example of Major Projects by Value
Compliance with the 2010 deadlineremains a question mark.
20%
11%
of the original budgethas been invested
of the projectsare concluded
* USD Exchange rate as of March 18, 2009
Source: www.brasil.gov.br/pacExame Magazine
Brazil PAC Projects
Logistics
High speed train US$ 10.4 B
Ferrovia Norte Sul / Trecho Sul US$ 2.2 B
Ferrovia Oeste / Leste US$ 2.2 B
Ferrovia Transnordestina US$ 1.9 B
Metro So Paulo / Linha 4 US$ 1.4 B
Energy
Complexo Petroqumico Integrado US$ 6.7 B
Santo Antnio Hydroelectric plant US$ 4 B
Refinaria General Abreu e Lima US$ 3.8 B
Jirau Hydroelectric plant US$ 4 B
Angra 3 Nuclear Plant US$ 3 B
http://www.brasil.gov.br/pachttp://www.brasil.gov.br/pac -
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
38/48
38
Mexico Infrastructure
National Infrastructure Program
Plan to improve the coverage,quality and competitiveness ofMexicos infrastructure
2007-2012Total investment
US$ 226 B*
Building / modernization
17,598 km of highways
1,418 km of railways
Build 3 new airports and
expand another 31 Build 5 new ports and expand
or modernize 22 more
Key Facts
* Source:www.infraestructura.gob.mx- Base scenario.
Mexico Infrastructure
http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/ -
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
39/48
39
Highways Electricity
AirportsWater and Sewer
* Source:www.infraestructura.gob.mx.
Mexico Examples
http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/http://www.infraestructura.gob.mx/ -
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
40/48
40
PANAMA CITY, Panama March 3, 2009 -On track and on time, the Panama CanalAuthority (ACP) continues to press aheadwith the start of the bid process for themost important project under its ExpansionProgram - the construction of the new set
of locks.Today, the ACP received proposals fromthree consortia competing to design andbuild the new, modern and state-of-the-artlocks on the Pacific and Atlantic sides ofthe Panama Canal.
The three consortia that submitted bidsincluded: Consorcio C.A.N.A.L;Consortium Bechtel, Taisei, MitsubishiCorporation and Consorcio Grupo Unidospor el Canal.
MULTIMODAL TRANSPORTATION SYSTEM
1
GATUNLAKE
GATUNLAKE
CANAL
RAILROAD /FIBER OPTIC
TRANSISTHMIAN HIGHWAY
PANAMERICAN HIGHWAY
CENTENARY HIGHWAY
PORTS
AIRPORTS
PacificPacific
AtlanticAtlantic
PanamaCity
PanamaCity
City ofColnCity ofColn
Approx70Km(43m
iles)
Approx70Km(43m
iles)
Panama Canal Expansion
* Source: Panama Canal Authority
Latin America Example
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
41/48
41
Terex and Latin America Infrastructure
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
42/48
42
Other Examples: Middle East
By Nadia Saleem, Staff Reporter, Gulfnews.com(Published: February 19, 2009, 23:10)
Dubai: The Middle East aviation industry will see losses doublethis year, yet a combined investment of $60 billion (Dh220billion) in airport development is underway in the region, Africaand the Asian subcontinent.
The region is undergoing unprecedented airport expansion tocope with rising passenger traffic, which increased seven per cent
last year despite the economic downturn, after 18.1 per centgrowth in 2007, according to the Middle East Economic Digest.
The Middle East, Africa and South Asia are all continuingsignificant airport investment.
The UAE's heaviest investment is in the new Al MaktoumInternational at Jebel Ali.
Worth $8 billion, it is set to become the largest airport in the world
with an annual capacity of 120 million passengers.It is followed by $11.3 billion upgrade of King Abdul AzizInternational Airport in Saudi Arabia, as well as other airports inthe country.
The development of Abu Dhabi International Airport comes nextat $6.8 billion followed by Qatars $5.5 billion New Doha Airport
Dubai
Qatar
Abu DhabiSources: gulfnews.com, aeconline.com (Abu Dhabi photo), arinc.com (Qatar photo), daylife.com (Dubai photo)
Aviation losses pose no threat to airport expansion
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
43/48
43
$2 billion coal-fired power plant in Central Java
$700 million railway connecting Soekarno-Hatta airportto the capital JakartaThe Japan International Cooperation Agency are set to sign a dealthat would set aside $491 million in low-interest loans for the project.
The deal represents part of JICAs 120-billion-yen commitment tofinance 85 percent of the transportation system, which the municipalgovernment hopes would help solve the capitals traffic problems.Tenders for the project may not begin until the end of 2010, withconstruction not scheduled to start until early 2011. The system itselfis expected to be operational by early 2016.
Central Java
Jakarta
Bali
$543 million deal with Korean Consortium will Double PortSize and Create 5-Star Accommodation Complex at Benoa
To fulfill the electrical energy demand on the Java Island PLN plans to
build, own and operate PLTU 1 Jawa Tengah 2x(300-400MW) plant tosupply electricity for industrial and public use. The plant will consist oftwo(2) units having gross output of 300-400MW each. The plant willgenerate using coal which will come from Kalimantan and Sumatra.
The development of Benoa would provide a convenient cruise terminal witha location just minutes from Bali's international airport the Island's maintourism areas.Plans for the development of the Benoa port has reportedly commencedwith the signing of a cooperation agreement with a consortium of 6 SouthKorean companies. Under the terms of that agreement the Korean partnerswill provide US$326 million for the development of port infrastructure andanother US$217 million for the construction of 5-star accommodation and atraffic flyover.
Other Examples: Indonesia
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
44/48
44
Other Examples: Angola
Due to the extensive warfare, most of Angola'sinfrastructure has been destroyed. There are19,156 kilometers (11,903.5 miles) of pavedroads and a total of 2,952 kilometers (1,834.4
miles) of rail tracks. Over 60% of them are notin working condition.
There are 32 airports with paved runways and217 with unpaved runways. Angolasgovernment appears committed to addressingthis and other infrastructural issues
Angola is one of the fastest growing
economies in the world due to its richmineral resources and rising oil production.The governments focus is on nationalreconstruction: it has identified investmentopportunities in the development ofhydroelectric power, water distribution,sanitation and transportation which could
improve the rural-urban divide in Angola
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
45/48
45
Other Examples: South Africa
The South African Government is committed to
make the 2010 FIFA World Cup the best World
Cup ever. Beside commitments that where
made to FIFA, the government is also using the
hosting of the World Cup to contribute to the
growth and development of the country.
National governments $2,8-billion direct
investment in infrastructure in the World Cup is
part of a much larger spending programbetween 2006 and 2010. During that time,
government will be investing more than $67
billion in the countrys infrastructure from rail
freight services and energy production, to
communications, airports and ports of entry.
The World Cup is also stimulating developmentin neighboring countries. For instance,
Mozambique will spend $51 million on the
rehabilitation of a railway line. Further more
they are investing $600million in new hotels,
casinos and other leisure facilities.
f f
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
46/48
46
Terex and Rest of World Infrastructure
K M
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
47/48
47
Key Messages
Pace of economic development is directly impacted by the
on-going financial crisis but long-term, underlying driversremain intact
Infrastructure investment has been slowed in places but, on-balance, continues despite (if not because of) the economic
crisis
Infrastructure opportunities are global but, near term, will bestrongest in countries who have the fiscal capacity and thepolicy mindset to fund aggressive stimulus
Global infrastructure is an important opportunity forcompanys like Terex who have a portfolio of capabilitiesand the ability to execute globally
-
8/2/2019 Infra 2009 - Apresentao Steve Filipov - Terex Brazil Infrastructure Conference
48/48