NOL Chief Says Private Infrastructure Investment Needed

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 May 2010

With public budgets stretched thin, governments should be doing more to encourage private investment in needed infrastructure, the CEO of Neptune Orient Lines told an international panel of transport ministers Friday at a transport forum in Leipzig, Germany. “Developed countries don’t have the money to do what they would like to, and developing countries are already pouring money into the effort,” Ron Widdows told an audience at the International Transport Forum 2010.
“We need to de-bottleneck this, and the most practical approach is to attract private investment.”
Widdows delivered his message to more than 500 government ministers and transport industry experts who met Friday in Leipzig to discuss 21st Century challenges in moving people and freight.
“Global trade is growing again after the economic crisis,” Widdows said, “and it threatens to stress the outdated freight transport system we have in place. If we don’t address this, we’ll inhibit trade growth and the global economy.”
Widdows said the needed infrastructure improvements can be financed by tapping into vast pools of liquidity that investors withheld during the economic downturn.
The funding is necessary to replace or improve rail lines, highways and seaports. To attract investment, Widdows told government ministers there are three requirements:
--A change in rules that prohibit international ownership of transportation assets such as airlines and marine terminals;
--Incentives – for instance, tax credits – to help investors realize a return on assets; and
-- Consistent international regulation to keep from scaring off private investors.
Widdows, whose company owns APL, the world’s fourth-largest container line, has been a strong advocate for global transport infrastructure improvement, which he has supported in meetings with the EU, Asian transport summits and at the White House.

Source: Journal of Commerce