The remarkable resurgence of rail

The remarkable resurgence of rail kpmg.com/insightmagazine

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People around the world are constantly demanding more roads…

But do more roads lead to better quality of life?

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Many governments are starting to avoid the ‘car culture’ that has built up in most urban areas and are placing growing investment behind

mass transit and rail in particular.

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Once derided as old-fashioned and boring, today’s rail sector

is positively sizzling.

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Old lines are being

rehabilitated

First aid

New – often high speed – lines

and metros are being developed

New sources of investment

are flowing into the sector

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Rail is enjoying massive growth in almost every geography and market.

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In many places, conventional rail lines are being upgraded and revitalized.

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South Africa’s rolling stock procurement program will utterly transform rail service in the country.

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In other places, new systems and lines are rapidly being developed.

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The first phase of Qatar’s plans for the development of the Doha metro system will see more than 100 kilometers of track laid and more than 37 new stations built over the next four years (by 2019).

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A set of long-term investment plans for Sao Paulo’s urban network envisions massive expansion over the next 15 years.

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It’s not just conventional rail that is enjoying the

resurgence – so, too, is the High Speed Rail sector.

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Plans for new High Speed Rail lines are in development in places like

Saudi Arabia and Africa

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Calls for new High Speed Rail services are growing in

Europe and Asia.

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Long-awaited new High Speed Rail projects are currently under

development in the UK and the US.

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Politicians, investors and voters understand that improved rail

service does more than just move people or goods from point A to

point B; it creates value.

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users investors businesses governments

Value for:

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As a result, we are starting to see rail projects evaluated on more than just financial and environmental feasibility.

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South Africa’s rail modernization program is designed to not only raise the quality and productivity of the country’s rail network, but also to drive local development, create jobs and – ultimately – establish a ‘made-in-Africa’ rolling stock manufacturing sector.

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Sao Paulo’s rail investments are largely focused on improving access to employment for a broader cross-section of society. Proponents of the UK’s HS2 project are adamant that the project will be transformational for the UK economy.

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Those that take a more holistic view of their rail projects and

investments will achieve more value, achieve better returns and

deliver better quality services from this resurgence of rail.

22© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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