The transport industry is the one most likely to be impacted by the combination of rising standards of living in the developing world, specially China and India; increased prices of hydrocarbon fuels; and efforts to mitigate global warming. There will be a move to more hydrocarbon-efficient vehicles. Transport infrastructure will have difficulty coping with forecast increases in traffic.

In the sections below, we list some of the key statistics and developments for the two years prior to December 2007. To see how this fits into our global outlook, we refer you to our World overview. For more recent information, we suggest you refer to the MBendi Blog: Signposts to 2020.

In September 2006, PWC forecast that vehicle production will increase by 13% over the next four years to more than 70 million vehicles per annum. 50% of growth will come from Asia Pacific and 50% of new capacity will be in BRIC. Production of automotive components is being relocated to Asia and Eastern Europe.

Japan is to introduce legislation for carmakers to cut fuel consumption by 20% between 2005 and 2016. Californian legislation calls for a 25% drop in car emissions by 2020.

By June 2007, Toyota had sold more than one million hybrid vehicles and acquired 90% of the market. Hybrids account for 0.5% of the global market of 66 million passenger vehicles. In October 2006, Toyota announced plans to cut the cost of hybrid petrol-electric technology by half in the next three years. In December 2006, Nissan announced plans to launch a hybrid car in 2010.

In November 2007, Honda unveiled the world's first hydrogen-powered fuel-cell car to go into production in mid 2008.

In November 2007, China announced plans to build one million kilometres of new roads by 2020, by which time road use will have doubled from 2006 to 36.5 billion passenger trips. China has 3.5 million kilometres of roads, 53,000 of them motorways.

The UK's rail consumer watchdog reported that in 2004, 70,000 London passengers, 15% of the total, stood on commuter services during the morning peak and 30,000 during the evening peak. With 600,000 new jobs slated for London by 2014, the number standing could be 130,000 in the morning and 67,000 in the evening.

In November 2006, Germany announced plans to sell share in Deutsche Baan rail service by 2009.

In April 2007, a French train reached a record 357.2 km per hour.

In March 2007, the EU and USA signed an open skies agreement.

Global air passenger traffic increased 6.3% in 1H2007, driven by demand in Africa (9.9%) and the Middle East (17.8%). According to the Airports Council International, Africa recorded the strongest regional growth in airline passengers in 1H2007 of 13.2%.

In February 2007, the Airports Council International expected the number of air travellers to double to more than 9 billion by 2025. The Henley Centre Headlight Vision forecast airline tourism to double between 2007 and 2020 to 837 million passengers. In October 2007, IATA predicted passenger air traffic worldwide will rise by 29% to 2.75 billion by 2011.

In 1H2007 909,000 US flights were delayed. The Federal Aviation Administration estimates that by 2015 delays in the air transport system will cost US$ 22 billion. By 2025 more than 60 European airports will be unable to meet demand. Airports Council International estimates China and India will be fastest growing markets overtaking North America by 2025.

The European private jet fleet has grown from 2,000 aircraft in 2000 to 2,850 in 2007. The USA has 70% of the market and Europe 10%.

According to Global Insight, container shipping volumes between Asia and Europe grew by 17% in 2007 versus 2006. Traffic is now double that of 2003.

By March 2007, China had 470 million bicycles, 50 million with electric motors. 4 million are stolen each year.

Footnote: If you are aware of any highlights we have missed, please contact us with details.