According to a report by the Financial Times, the world’s big energy groups have shelved USD200 bn of spending on new projects in yet another round of cost-cutting as oil prices continue to fall.
The Iranian sanctions development coupled with OPEC’s refusal to cut production has begun to weigh heavily on the commodity’s price once again. But Iran’s situation looks likely to provide more positive opportunities than negative for the heavy transport sector in the long term, with around USD185 bn of oil and gas investments expected by 2020.
The project logistics industry also looks set to benefit from other developments around the world. Kenya’s promise, for example, was thrust into the limelight last week after US president Barack Obama visited the country and discussed its economic and political progress, despite the major threat that corruption, terrorism and ethnic division still pose to the African nation’s prosperity.
At the same time, GE confirmed USD2.5 bn of orders from sub-Saharan Africa, and it expects to seek financing for African projects worth at least USD1.5 bn annually as it expands its footprint in a region.
The African Development Bank suggested that economic growth across Africa is set to accelerate to 5 percent in 2016 from an estimated 4.5 percent during 2015, when foreign direct investment will rise to USD73.5 billion. Such opportunity will be welcome relief to those transport providers active on the continent.