Business Monitor International


Argentina Infrastructure Report

Published 29 January 2014

  • 89 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Argentina Infrastructure Report

BMI View: We have upwardly revised our forecast for Argentina's construction industry this quarter in light of recent official data. Having experienced strong growth in Q313, we now estimate low but positive industry growth at 1 .0 % in 2013, recovering from the sharp contraction in 2012. We anticipate this recovery trend to follow through 2014 when we forecast 1.5% y-o-y real growth. There are, however, downside risks to our forecast as the country continues to struggle with fundamental policy and regulatory constraints which prevent the market from fulfilling its true potential.

Key developments in the sector:

  • BMI's Country Risk team forecasts that Argentina's economy will slow in 2014, with real GDP growth falling to 2.9% from an estimated 3.2% in 2013, as currency devaluation pushes inflation higher, weighing on consumer and government spending. Despite government efforts to halt the rapid price growth, our country risk team estimates that consumer price inflation remains above 20% in year-on-year (y-o-y) terms.

  • On January 23 Argentina's central bank dramatically reduced its intervention in the currency market, allowing the peso to fall by 21.3% against the US dollar. We expect that the sell-off will send inflation considerably higher in the months ahead, hitting purchasing power and potentially the housing market as a result.

  • Policies on the residential construction sector seem to be having a positive effect on the industry as building activity has reported consistent growth over recent quarters. In turn, we also expect infrastructure to contribute to growth as a number of transport and energy projects progress.

  • News that Argentina has reached an initial compensation deal with Spanish-owned Repsol could be a significant boost to the country's oil and gas sector over the long term. While a deal has yet to be finalised, if an accord is reached, we believe it could go a long way toward de-risking the Argentine oil and gas sector, bolstering...

Table of Contents

BMI Industry View
7
SWOT
8
Infrastructure SWOT
8
Industry Forecast
10
Construction And Infrastructure Forecast Scenario
10
Table: Argentina Construction and Infrastructure Industry Data
10
Table: Argentina Construction and Infrastructure Industry Data
12
Transport Infrastructure - Outlook And Overview
20
Table: Major Projects - Transport
23
Energy & Utilities Infrastructure - Outlook And Overview
25
Table: Energy & Utilities - Major Projects
30
Residential/Non-Residential Building - Outlook And Overview
33
Industry Risk Reward Ratings
36
Argentina - Infrastructure Risk/Reward Ratings
36
Rewards
36
Risks
37
Latin America - Infrastructure Risk/Reward Ratings
37
Table: Latin America Infrastructure Risk/Reward Ratings
46
Market Overview
47
Competitive Landscape
47
Table: Argentina EQS Data
47
Company Profile
50
Roggio
50
Techint
52
Table: Techint Group Consolidated Highlights (US$mn)
54
Global Infrastructure Overview
55
Africa In 2014: PPPs Cement Global Appeal
55
Asia-Pacific In 2014: Shaping Up To Be A Benign Year
60
Latin America In 2014: A Prosperous Year For Infrastructure Development
67
MENA In 2014: Reaping Rewards Despite Risks
70
North America And Europe In 2014: Turning A Corner
75
Methodology
82
Industry Forecast Methodology
82
Sector-Specific Methodology
83
Risk/Reward Rating Methodology
87
Sector-Specific Methodology
88
Table: Infrastructure Risk/Reward Rating Indicators
88
Table: Weighting Of Indicators
89

The Argentina Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Argentina Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Argentinian infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Argentina to test other views - a key input for successful budgetary and planning in the Argentinian infrastructure market.
  • Target business opportunities and risks in the Argentinian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Argentina.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.

These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).

Industry Trends

Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:

Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.

Building Materials Overview

The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.

Business Environment Ratings

BMI's Infrastructure Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.

The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data point.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry & Economic Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).

Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc