According to a new PwC global report, 60% of Transport & Logistics (T&L) CEOs are particularly upbeat about their companies’ prospects for revenue growth over the next 12 months, up from 31% last year and compared to an average 48% across all industry sectors.

The report, Growth re-imagined: Key findings in Transportation & Logistics, set out to uncover how CEO’s in the industry are approaching development in these times of uncertain sustainable economic growth and how with their worst fears behind them, they are adopting new approaches to deal with the issues of the multi-speed global recovery.

New trade routes, stronger players, emerging markets and global M&A landscape

Most CEOs expect growth to come primarily from emerging markets with expectations placed on Latin America, Asia and China - 73% of CEOs say their companies are changing their strategies to respond to growth potential in emerging markets.

Across all industry sectors, 39% of CEOs anticipate China to be one of the three foreign countries most important to their companies’ growth. The African continent has not been excluded, as the growth of south-south trade plays a vital role in spreading confidence by reshaping trade corridors.

T&L CEOs are significantly less concerned about protectionism in 2011 and only 37% have expressed concern, compared to 66% last year. This is largely attributed to the fact that trade barriers appear to be coming down.

2010 was seen as a year of recovery for the global M&A landscape in T&L as total deal value showed a dramatic spike, climbing 111% to $35.6 billion in Q4 2010 compared to $16.9 billion in the third quarter of 2010 – and according to findings from the PwC report, 40% of CEOs plan to complete a merger or acquisition in the coming 12 months.

The increased number of mega-deals in Q4 helped to drive growth in both deal value and deal volume totals. The 14 mega-deals (deals with a disclosed value of at least $1 billion) announced in 2010 represent a strong increase from the nine mega-deals reported in 2009. Additionally, six of the 14 mega-deals reported in 2010 were announced during the fourth quarter.

CEOs eager to partner with government for infrastructure development

Klaus-Dieter Ruske, Global T&L leader, PwC, said:

“The T&L industry has enjoyed a close relationship with government, as many companies were owned by them at their inception. The Government also plays a key role in providing oversight and regulation of much of the transport industry.”

CEOs deem infrastructure improvement as a critical component for global competitiveness and many expect government to build and maintain the country’s transport infrastructure. For the T&L industry, transport infrastructure is essential to the sector’s ability to operate effectively.

Mr Liakos M Theodorou, PwC, commented:

“Infrastructure development is one area where government and private industry partnerships are already becoming extremely important and 62% of global T&L CEOs feel that it should be one of the top three issues governments must address.”

Over half (55%) of T&L CEOs are increasing their commitment to improve their country’s infrastructure. Public-private partnerships (PPPS) are already emerging and both government and companies need to raise the cash required to build and maintain roads, ports, subway systems and airports.

“Businesses have the expertise and ability to manage risk, adding to the attractiveness of PPPs. While our research shows that the existing gap in the transport infrastructure is unlikely to be bridged by 2030, transport infrastructure remains crucial in determining a country’s development,” concludes Mr Theodorou.