Infrastructure event connects with European clients

GHD Advisory was recently a sponsor of the 13^th Annual Infrastructure Investors Forum (IIF) Europe, a leading event for the infrastructure and asset management community. Bringing together more than 250 delegates from across the world, GHD Advisory was represented by Richard Fechner, Tim Mawhood and David Kinniburgh.

The annual forum gave delegates the opportunity to learn how infrastructure investment activity in 2019 will be driven by digitalisation, increased investor sophistication and global economic trends. The conference heard that valuations of infrastructure assets may have peaked after a period of continuous growth driven by low interest rates. To create value into the future, infrastructure investors are taking a longer-term view with a greater focus on ongoing optimisation to improve asset performance.

Richard Fechner, Group Executive Manager, GHD Advisory spoke in a panel that included Ashurst, LTIIA, Infravia Capital Partners, Atlantic Pacific and Rubicon, on changing views of funds to core (essential services with predictable demand) and non-core infrastructure classes.

According to Richard, so-called ‘non-core’ infrastructure investments are often less risky than core infrastructure assets. “Firms are more prepared to take greenfield risk and get involved at earlier stages of the pipeline when it comes to non-core assets,” he said.

“The key is managing risk through good due diligence and ongoing optimisation of the asset.”

Tim Mawhood, GHD Advisory’s Executive Manager Europe and Middle East for Infrastructure Investment and Economics, spoke about strategic considerations with regard to port and freight infrastructure on a panel that included Boston Consulting Group, Goldman Sachs, Yildirim Group, Asset Buyout Partners and PWC. The panel looked at the opportunities and challenges faced by port investors in terms of investment selection, effective asset integration, operational planning, diversification of delivery and services, technology and current market trends.

Tim said, “Ports need to show strong leadership as international gateways and economic generators, with effective planning and metrics development to measure and benchmark performance. Investor and management complacency, lack of agility, technology and integration were seen as the key challenges and opportunity areas at the end of the session.”

According to David Kinniburgh, GHD’s Market Leader Transportation - Northern Hemisphere, “While reducing slightly from its peak, the scale of infrastructure investments in the year ahead is still predicted to be 2.5 times more than in 2015. This is a large (USD500B+) and sophisticated market where clients have a keen eye on operational efficiency, decarbonisation and a digital future. A greater emphasis on brownfield assets, and a liberalising of the European market will provide opportunities for GHD to help clients solve these issues thanks to our multidisciplinary capabilities.”