HIGH LEVEL SEMINAR ON KEY ELEMENTS OF COMPETITIVENESS OF THE EUROPEAN INDUSTRY IN INFRASTRUCTURE PROJECTS OUTSIDE EUROPE Brussels, 8th October 2014

Transcription

1 HIGH LEVEL SEMINAR ON KEY ELEMENTS OF COMPETITIVENESS OF THE EUROPEAN INDUSTRY IN INFRASTRUCTURE PROJECTS OUTSIDE EUROPE Brussels, 8th October 2014 Julián Núñez President of SEOPAN

2 A - TOP GLOBAL CONTRACTORS Main figures by continents in 1995/2013 (ENR top global contractors US M$)

3 A1 - Total turnover breakdown 1995/2013 (ENR Top Global Contractors in US M$) /2013 TOTAL TURNOVER AUSTRALIA 0% LATIN 1% 1995 AUSTRALIA 3% LATIN 2% NORTH 19% EUROPE 33% ASIA 47% NORTH 15% EUROPE 29% ASIA 51% LATIN ASIA EUROPE NORTH AUSTRALIA ,1% -4 pp ,1% ,3% -4 pp + 4 pp 2013 Turnover % Var 2013/1995 pp Var World Share ,1% Worldwide: pp + 233,4% ,0% + 3 pp

4 A2 - International turnover 1995/2013 (ENR Top Global Contractors in US M$) /2013 INTERNAT. TURNOVER AUSTRALIA 1% LATIN 1% 1995 AUSTRALIA 2% LATIN 2% NORTH 18% ASIA 28% NORTH 14% ASIA 27% EUROPE 52% EUROPE 55% LATIN EUROPE AUSTRALIA ASIA NORTH ,4% + 445,4% - 4 pp + 3 pp + 383,3% - 1 pp ,8% + 1 pp Worldwide: ,9% ,0% + 1 pp

5 A3 - New infrastructure contracts 1995/2013 (ENR Top Global Contractors in US M$) NEW CONTRACTS AUSTRALIA 1% LATIN 1% 1995 AUSTRALIA 2% LATIN 2% LATIN ASIA NORTH 23% EUROPE 33% ASIA 42% NORTH 11% EUROPE 26% ASIA 59% EUROPE NORTH AUSTRALIA ,6% - 12 pp + 221,9% - 7 pp + 490,1% +17 pp ,8% Worldwide: pp + 316,1% , ,2% + 1 pp

6 B - INTERNATIONAL ACTIVITY OF MAYOR EUROPEAN COMPANIES (ENR Top International Contractors in US M$)

7 B - International activity of mayor European companies 1989/2013 (ENR Top International Contractors in US M$) North America + 113% % 35% 19% Asia + Australia % 10% Middle East + 239% % 10% Latin America % Africa + 190% Total outside UE 2013: million $

8 C - TOP GLOBAL REGIONS - MAIN FIGURES (ENR Top International Contractors in US M$)

9 C & 1989/2013 turnover of foreign companies in Asia (ENR Top International Contractors in USM $) North America Europe 38% % % % 42% Asia 3% Total Australia + 13% %

10 C & 1989/2013 turnover of foreign companies in Middle East (ENR Top International Contractors in US M$) North America % Europe + 322% Asia % % 38% M. East 44% Total + 375%

11 C & 1989/2013 turnover of foreign companies in Africa (ENR Top International Contractors in US M$) Europe North America + 221% % % % 55% 2% Asia % Africa Total + 335%

12 C & 1989/2013 turnover of foreign companies in Latin America (ENR Top International Contractors in US M$) North America % Europe + 588% Asia % % 47% 16% 700 Latam 17% Total + 643% 7.600

13 C & 1989/2013 turnover of foreign companies in North America (ENR Top International Contractors in US M$) Europe + 113% % North America 60% + 302% 6% Asia + 88% % Total + 263% % Australia 3.987

14 C & 1989/2013 turnover of foreign companies in Europe (ENR Top International Contractors in US M$) 89% Asia + 324% North America -36% 7% Europe 3% Total + 340%

15 D - TREND OF GLOBAL INFRASTRUCTURE INVESTMENT

16 D1 - Trend of global infrastructure investment Infrastructure to 2030 concluded that global infrastructure investment needs across the land transport (road, rail), telecoms, electricity and water sectors would amount to around USD 53 trillion over 2010/2030 (OECD 2006, 2007) $40bn $476bn $20bn $455bn $1.004bn $1.171bn $575bn $1.020bn $1.000bn $140bn $1.434bn $105bn More than $6 trillion infrastructure investment programme has been announced by the emerging economies... along with a USD 1 trillion by key developed economies for a period of 5/10 years to strengthen its infrastructure

17 D2 - Trend of global infrastructure investment Billion air passenger traffic ( passengers x km) within regions in 2009 and 2030* + 74% 898 -> % 625 -> % + 297% 135 -> % 36 -> > % 845 -> * Source: Boeing (2010) Current market Outlook, Boeing, Seattle, WA, October Asia - Pacific will represent 47% of the world air regional passenger traffic in 2030

18 D3 - Trend of global infrastructure investment Rail infrastructure investment needs 2015/2030 (in USD billions)* * Source: OECD Global infrastructure needs for 2030 China and India will represent 47% of the world rail infrastructure investment in 2015/

19 E EXPORT CREDIT FINANCIAL COMPETITION

20 Increasingly aggressive approach by some foreign competitors in the export financing Global official export support ($ Billions) PAST PRESENT Global export competition was governed by international standards put in place to ensure that companies could compete on free-market factors like price and quality rather than on aggressive government financing Unregulated competition is expanding: ECAs offering terms that are not regulated by the OECD. Around USD 115bn in trade-related financing comes from nations outside the OECD framework Regulated OECD Arrangement Unregulated OECD Activity Non-OECD BRIC ECA Activity Source: Report to the US Congress on the Export-Import Bank of the United States and Global Export Credit Competition Ex-Im bank Financial facilities of Asian ECAs: Good sovereign ratings Direct and indirect loan options Financial guarantee Project related bonds Equity investment Tied and untied program offerings Seemingly unlimited capacity No country or debt limit US awareness of the threat: Conclusions of the Report to the US Congress on the Export-Import Bank of the United States and Global Export Credit Competition Ex-Im bank: " The Committee urges Ex-Im Bank to work with the Congress and the Obama Administration on a strategic approach to preserve US competitiveness over the long term. What should Europe do?

21 Key messages Fostering international investment of European contractors is essential: Fiscal return to EU countries of foreign activity Multiplying effect: employment, subcontracting, engineering, plant & equipment Internationalization implies significant efforts on R&D Avoid lack of credentials requested in PQ processes abroad that have hindered the sector during the EU financial crisis The weight of engineering activity within companies directly related to the total turnover The economic growth is moving fast from developed world to emerging markets European contractors are losing current leadership and future opportunities due to public privileged financial and guarantee schemes coming from emerging countries Lack of harmonization of export credit conditions worldwide is hindering our competitiveness Europe should implement measures in order to match the gap and ensure the same playing field

22 SEOPAN Association of infrastructure contractors & concessionaires C/Diego de León Madrid, SPAIN seopan@seopan.es