Transport Infrastructure Construction and RMI Market Report - UK Analysis

Transcription

1 Transport Infrastructure Construction and RMI Market Report - UK Analysis Published: 19/12/2017 / Number of Pages: 60 / Price: Introduction and Overview The 6th Edition of the 'Transport Infrastructure Construction and RMI Market Report - UK Analysis' will be of interest to individuals and construction professionals, and provides a comprehensive review of transport infrastructure construction and RMI. Key issues covered: A review of the major sectors within the transport infrastructure; roads, rail, airports and ports identifying investment trends and construction activity levels. In-depth analysis of Government funding/investment in the transport sector, including DfT, Highways England, Network Rail, TfL budgets and Local Authority transport projects. Insight - contractor capability and experience in the roads, rail, airports and ports sectors. Key areas of insight include: Government transport initiatives, investment programmes and key projects in the development pipeline to 2021 and beyond - budgets, timescales, analyses. Detailed analysis of the first 5-year Roads Investment Strategy (RIS). Review of the Government's Transport Strategy for the North, announced in the 2015 Budget, which sets out options for future transport investment in the north of England. Identification of investment and construction opportunities in the aviation industry with a focus on Heathrow's third terminal and potential expansion of Gatwick airport. Review of progress of Network Rail's Control Period 5 ( ); HS2 contract awards as at Q4 2017; assessment of proposed major schemes for the longer term e.g. Crossrail 2 and HS3. Detailed market data and insight on transport infrastructure construction by AMA Research, a leading UK provider of construction market intelligence.

2 Some of the companies included: Amey, Balfour Beatty, BAM Nuttall, Buckingham Group, Carillion, Clancy Docwra, Costain, Galliford Try, Interserve, Kier, Laing O'Rourke, Morgan Sindall, Skanska, Vinci/Taylor Woodrow, VolkerFitzpatrick, Bowmer & Kirkland, Buckingham Construction, Carillion, Miller, Farrans Construction, Lend Lease, J Murphy, Shepherd, Sisk, Simons Construction, Midas, Bouygues, Morrison Construction, Colas, Dyer & Butler, Marco and Raymond Brown, Wates, Bardsley Construction, Eric Wright Group, Speller Metcalfe, Longcross Group and more. UK Transport Infrastructure Construction Overview Overview of total infrastructure construction output and forecasts new work, RMI and total. Identification of key drivers, mostly government programmes e.g. Roads Investment Strategy, Transport Strategy for the North; Network Rail's Control Periods etc. Overview of funding - government, private, PFI. Market mix - roads, rail, airports and ports. Analysis of project activity in the transport sector and outlook for transport infrastructure work. Roads Road construction and RMI output and forecasts Roads Investment Strategy (RIS), national and local roads; regional assessment. Insight into key national initiatives and projects - budgets, programmes and schemes up to Development of Smart Motorways Programme. Contracting in the roads sector - procurement, leading operators, capability and contract awards. Railways Railways construction and RMI output and forecasts Key national initiatives in the railways sector - budgets, programmes and schemes up to 2021 and beyond. Analysis of investment & projects under Network Rail's Periodic Rail Reviews (CP5) and (CP6). Evaluation of performance, capital investment, construction output within the light rail/tram systems sector in the UK. Major rail enhancements - current and planned schemes including; HS2 and HS3, Crossrail2, Transport for London underground and overground projects. Contracting in the railways sector - procurement, leading operators, capability and contract awards. Airports and Sea Ports Airports construction and RMI output and forecasts Key capital investment programmes taking place at Heathrow, Gatwick, Manchester and other major airports. Contracting in the airports sector - leading operators, capability and contract awards. Sea ports construction and RMI output and forecasts Key UK sea port development activity and expansion plans.

3 Contracting in the sea ports sector - procurement, leading operators, capability and contract awards. Report Summary This updated and re-structured report provides an up-to-date review of the transport infrastructure construction market with forecasts to 2021 and identification of major developments beyond this date. As well as an overarching review of the market, there are also specific appraisals of the roads, railways, airports and sea ports sectors. Notwithstanding the impact from the UK leaving the EU, the government is solidly committed towards supporting the development of the UK's transport infrastructure; major roads, the railways and a 3rd runway at Heathrow. Major programmes such HS2, the completion of Crossrail, the rolling out of 'smart motorways', the expansion of airport capacity and proposed HS3 and Crossrail2 are likely to sustain construction output well into the next decade. At the 2015 Spending Review, the Government announced it would increase transport spending by 50% to invest 61bnincluding starting construction on High Speed 2, spending 13.4bn on the Roads Investment Strategy (RIS) and over 5bn on roads maintenance. This was followed by subsequent investments in the 2016 Autumn Statement and 2017 Spring Budget of 1.1bn of new funding from the National Productivity Investment Fund (NPIF) to relieve congestion and deliver upgrades on local roads and public transport networks and 690m for local authorities for local transport measures. The Government, through Transport for the North (TfN) is also developing an integrated, multi-modal Strategic Transport Plan, which will build on the 2015 Northern Transport Strategy (NTS) to make a prioritised case for investment in Transport links across the North of England to The Government has already backed the NTS with significant investment in transport and by 2020 will have spent more than 13bn on improving and modernising transport links across the Northern Powerhouse. List of Report Contents Contents Listing 1. INTRODUCTION 5 2. SUMMARY OVERVIEW ROADS SECTOR RAIL SECTOR AIRPORTS AND PORTS 9 3. ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION 12

4 3.6 STERLING POPULATION PROFILE CONCLUSIONS UK TRANSPORT INFRASTRUCTURE CONSTRUCTION MARKET OVERVIEW OF INFRASTRUCTURE CONSTRUCTION OUTPUT TRANSPORT INFRASTRUCTURE CONSTRUCTION Recent developments Market Prospects ROADS CONSTRUCTION OUTPUT KEY DRIVERS Overview of Investment in Roads Schemes Government's Roads Investment Strategy (RIS) Smart Motorways Investment in Local Roads CONTRACTING IN THE ROADS SECTOR Procurement RAIL INTRODUCTION CONSTRUCTION OUTPUT KEY DRIVERS MAJOR RAIL ENHANCEMENT PROJECTS Overview HS HS3 (Northern Powerhouse Rail) Transport for London - Key Rail Projects 34

5 6.4.5 Crossrail East West Rail Programme Great Western Electrification (Great Western Route Modernisation) Midland Mainline Electrification Crossrail (Elizabeth Line) Thameslink CONTRACTING IN THE RAILWAYS SECTOR Procurement Contractor Activity in PORTS & AIRPORTS OVERVIEW OF AIR TRANSPORT SERVICES IN THE UK AIRPORTS CONSTRUCTION OUTPUT Heathrow Airport Gatwick Airport Manchester Airport Other Airports KEY PORT EXPANSION & DEVELOPMENT ACTIVITY Introduction Recent construction activity and forecasts CONTRACTING IN THE AIRPORTS & SEA PORTS SECTORS MAIN CONTRACTORS 51 APPENDICES 55 Tables & Charts TABLE 1: TRANSPORT INFRASTRUCTURE CONSTRUCTION - KEY SUMMARY DATA (CONSTRUCTION OUTPUT AND KEY CAPITAL PROGRAMMES) TABLE 2: GDP DATA KEY CONSTITUENT ELEMENTS 10

6 CHART 3: INTEREST RATES AND INFLATION (CPI) FROM CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5: EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 13 CHART 6: INFRASTRUCTURE NEW WORK AND RMI CONTRACTORS OUTPUT BY VALUE ( BILLION AT SEASONALLY ADJUSTED AT CURRENT PRICES) 2012 TO CHART 7: NON-RESIDENTIAL CONSTRUCTION OUTPUT NEW WORK, RMI & INFRASTRUCTURE BY VALUE ( BILLION AT CURRENT PRICES) 2012 TO CHART 8: TRANSPORT CONSTRUCTION OUTPUT GROWTH AND FORECASTS BY VALUE ( MILLION AT CURRENT PRICES) 2012 TO CHART 9: NATIONAL INFRASTRUCTURE & CONSTRUCTION PIPELINE - TRANSPORT INFRASTRUCTURE INVESTMENT BY SECTOR 18 CHART 10: DEPARTMENT FOR TRANSPORT RESOURCE & CAPITAL BUDGET BN: TABLE 11: TRANSPORT FOR LONDON (TFL) CAPITAL SPENDING PLAN BY SECTOR ( M) TO CHART 12: NATIONAL INFRASTRUCTURE DELIVERY PLAN: SECTOR INVESTMENT ONWARDS BY FINANCING MODEL (%) 21 CHART 13: ROADS CONSTRUCTION OUTPUT GROWTH AND FORECASTS BY VALUE ( M AT CURRENT PRICES) 2012 TO TABLE 14: ROADS INVESTMENT STRATEGY: STATEMENT OF FUNDS AVAILABLE TO ( M) 24 TABLE 15: ROADS INVESTMENT STRATEGY (RIS1) - REGIONAL CONCENTRATION OF SCHEMES ( BN) 24 TABLE 16: ROADS INVESTMENT STRATEGY - STATUS OF SMART MOTORWAY SCHEMES (AS AT OCTOBER 2017) 26 TABLE 17: HIGHWAYS ENGLAND - LOCAL TRANSPORT FUNDING BY PROGRAMME AREA ( M) TO TABLE 18: ROADS INVESTMENT STRATEGY - COLLABORATIVE DELIVERY FRAMEWORK AWARDS (AS AT FEBRUARY 2017) BY CONTRACTOR AND CONTRACT VALUES ( M) 28 TABLE 19: TOP 10 CONTRACTORS IN THE ROADS SECTOR (BY NUMBER & VALUE OF CONTRACTS AWARDED) YEAR TO OCTOBER CHART 20: RAIL CONSTRUCTION OUTPUT GROWTH AND FORECASTS BY VALUE ( BN AT CURRENT PRICES) 2012 TO TABLE 21: NETWORK RAIL - CP5 PLANNED OPERATION MAINTENANCE AND REPLACEMENT ANNUAL EXPENDITURE BY FUNCTION ( M) TO

7 TABLE 22: CP5 - PROPOSED RAIL ENHANCEMENT SCHEMES (COMMITTED FUNDING M) 32 TABLE 23: HS2 - TOTAL ALLOCATED FUNDING ( BN) (AT 2015 PRICES) 34 TABLE 24: TFL - CAPITAL INVESTMENT BY MAJOR PROJECT AREA AND SCHEME: TO ( M) 35 TABLE 25: CROSSRAIL 2 - HIGH LEVEL ASSESSMENT OF COSTS BY BRANCH ( BN) 36 TABLE 26: CROSSRAIL - REMAINING INDICATIVE WORKS TIMETABLE TABLE 27: LEADING CONTRACTORS BY VALUE OF NETWORK RAIL CONTRACTS IN CHART 28: AIRPORTS CONSTRUCTION OUTPUT GROWTH AND FORECASTS BY VALUE ( M AT CURRENT PRICES) 2012 TO TABLE 29: HEATHROW AIRPORT EXPANSION PLAN: TIMELINE TABLE 30: HEATHROW AIRPORT - OPTIONS FOR RUNWAYS AT HEATHROW: INDICATIVE COSTS ( BN) 43 TABLE 31: GATWICK AIRPORT - CAPITAL INVESTMENT PROGRAMME: KEY SCHEMES BY VALUE ( M) 44 CHART 32: SEA PORTS AND HARBOURS CONSTRUCTION OUTPUT GROWTH AND FORECASTS BY VALUE ( BN AT CURRENT PRICES) 2012 TO TABLE 33: TOP CONTRACTORS BY VALUE OF AIRPORT/PORT SECTOR CONTRACTS IN TABLE 34: LEADING CONTRACTORS IN THE SEA PORTS SECTOR BY CONTRACTS AWARDED IN TABLE 35: INFRASTRUCTURE SECTOR ANALYSIS - TOP CONTRACTORS IN THE TRANSPORT SECTOR: KEY PROJECTS IN AND PREVIOUS EXPERIENCE 52 The 'Transport Infrastructure Construction and Refurbishment Market Report - UK Analysis' costs 795+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following:

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