Business Monitor International


Chile Infrastructure Report

Published 02 December 2014

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

BMI View:   We forecast modest growth of 2.6% for Chile's construction industry in 2015 on the back of falling fixed investment and weakening copper prices - the country's primary export . Despite offering one of the most attractive business environments in the region , we highlight that recent tender delays and contract cancellations will have a detrimental impact on investor sentiment towards the Chilean market.

Key Trends And Developments

  • Chile's unique geography raises particular challenges for transport infrastructure. However, the attractive investment environment means that the sector will maintain solid growth in the medium term. Road building remains the primary focus, but railways and ports are also set to win big.

  • We expect strong growth in renewable energy infrastructure given the country's high potential for biomass, solar, wind, and marine power generation. The unanimous passing by parliament of the upward revision to the country's renewable energy targets in September 2013 confirms our constructive view of the Chilean market. This was complemented by the introduction of a carbon tax in September 2014.

  • We remain positive over the residential sector's long-term growth prospects. However, in the short term growth will be moderate due to weakening domestic demand and an uptick in unemployment. This will result in lower construction industry growth rates than the ones seen in 2011 and 2012, when government stimulus lead to a boom in industry value.

  • Growth in gross fixed capital formation (GFCF) has dropped off sharply in recent quarters , highlighting a negative trend in investor sentiment, particularly with regards to the mining sector, where lower copper prices weigh heavily on profits,

  • Chile now ranks second highest in our Latin America regional Risk/Reward Index, after Colombia. Market-friendly policies and strong institutions have been the hallmark of the Chilean government setting the benchmark for political stability in the...

Table of Contents

BMI Industry View
5
SWOT
6
Industry Forecast
8
Construction And Infrastructure Forecast Scenario
8
Table: Construction And Infrastructure Industry Data (Chile 2012-2017)
8
Table: Construction And Infrastructure Industry Data (Chile 2018-2023)
8
Transport Infrastructure - Outlook And Overview
14
Major Projects Table - Transport
18
Table: Major Projects - Transport
18
Energy And Utilities Infrastructure - Outlook And Overview
24
Major Projects Table - Energy & Utilities
30
Table: Major Projects - Energy and Utilities
30
Residential/NonResidential Building - Outlook And Overview
37
Industry Risk Reward Ratings
42
Chile Risk/Reward Ratings
42
Rewards
42
Risks
43
Latin America - Infrastructure Risk/Reward Ratings
44
Table: Latin America Infrastructure Risk/Reward Ratings
51
Market Overview
52
Competitive Landscape
52
Table: EQS Data
52
Company Profile
55
Grupo ACS
55
Abertis
59
Global Industry Overview
61
Middle East/North Africa Presents Strongest Investment Profile
61
Methodology
67
Industry Forecast Methodology
67
Sector-Specific Methodology
68
Risk/Reward Rating Methodology
72
Sector-Specific Methodology
73
Table: Infrastructure Risk/Reward Rating Indicators
73
Table: Weighting Of Indicators
74

The Chile 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 Chile Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Chilean infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Chile to test other views - a key input for successful budgetary and planning in the Chilean infrastructure market.
  • Target business opportunities and risks in the Chilean infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Chile.
  • 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 national and multinational company developments. These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, pipelines and so on).

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 Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The Reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Indices provide investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points to provides indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

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 Company 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.

Sources

The infrastructure Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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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