{ "docId": "019dd923-5de0-76bd-a169-0df03e051770", "docSlug": "60710839fd76036e", "documentTitle": "Transport & Logistics Barometer", "authorId": "PwC", "authorName": "PwC", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.778, "pageNumber": 30, "pageCount": 39, "prevPage": 29, "nextPage": 31, "slideType": "industry_trends", "function": "summarize", "density": "overcrowded", "nDataPoints": 2, "notes": "The slide is a text-heavy industry commentary page from a Transport & Logistics Barometer report.", "elementsJson": [ "paragraph", "photo" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a169-0df03e051770/30", "deckHref": "/decks/019dd923-5de0-76bd-a169-0df03e051770", "deckJsonHref": "/decks/019dd923-5de0-76bd-a169-0df03e051770.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a169-0df03e051770#slide-30", "components": [ { "bbox": null, "kind": "callout", "text": "Overall, we believe dealmaking opportunities will continue to emerge in 2024; hence, we expect a moderate growth in M&A, after the historic low of 2023.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-3be6-7628-b9c6-7cc63350fc39", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.867, "w": 0.318, "x": 0.682, "y": 0.133 }, "kind": "image", "text": null, "attrs": null, "subkind": "photo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4473f972-9695-4f03-bfd1-b75c48d7f8c5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.155, "w": 0.327, "x": 0.036, "y": 0.283 }, "kind": "paragraph", "text": "European ports are faced with a conflict between investment requirements and policy considerations. They need financially strong partners to upgrade their infrastructure (especially intermodal capabilities) and implement new technologies for increased efficiency. However, upcoming discussions regarding the regulation of foreign investments could make it more challenging for ports and terminal operators to find foreign investors who would be satisfied by holding a minority participation.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "16f0ae2c-d7c1-4f16-bf00-b09d6df340cb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.105, "w": 0.327, "x": 0.036, "y": 0.168 }, "kind": "paragraph", "text": "We will certainly see more port and terminal deals in 2024. Hapag-Lloyd alone recently announced its intention to invest in up to 15 more port terminals, to name just one example. Investments will take place especially in Asia, Middle East and Africa, providing emerging economies better access to globalised or inner regional markets.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "313b80dc-6709-40f6-a13d-9b8310227f69", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.185, "w": 0.327, "x": 0.355, "y": 0.133 }, "kind": "paragraph", "text": "This applies, in particular, to financial investors. Financial sponsors — sovereign wealth funds, private equity and venture capital investors have plenty of cash for acquisitions. For example, global private equity dry powder at midyear stood at $2.49 trillion, up more than 11% since the close of 2022. They are, therefore, still in a position to make larger deals. Coupled with a slightly more positive economic outlook for the coming year, this suggests that financial investors will once again become increasingly involved in M&A activities in the logistics sector.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3ecf7c29-7c94-4be7-87e0-0fa2da854249", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.235, "w": 0.327, "x": 0.355, "y": 0.328 }, "kind": "paragraph", "text": "Still, current market conditions may continue to give strategic buyers an edge. Whether or not freight markets have bottomed out, strategic investors who benefited from the higher freight rates of the past few years may now be more confident in taking a longer-term view of the rate cycle and invest accordingly. Strategic investors often have fewer constraints when raising capital than their financial counterparts. Greater access to capital may encourage companies with strong balance sheets to acquire and consolidate smaller competitors challenged by the current cost of capital. Finally, strategic investors may be more inclined to pursue technology-driven deals that promise greater returns when scaled across a larger organisation.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "61c70c02-a4bb-41d9-9271-6987628601a3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.085, "w": 0.327, "x": 0.036, "y": 0.621 }, "kind": "paragraph", "text": "Overall, we believe dealmaking opportunities will continue to emerge in 2024; hence, we expect a moderate growth in M&A, after the historic low of 2023. Interest rates will likely remain high in the mid term, but the looming interest rate turnaround by the central banks should have a positive impact on the M&A climate.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8d31d342-195a-4525-991e-20cdb55d63ed", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.135, "w": 0.327, "x": 0.355, "y": 0.573 }, "kind": "paragraph", "text": "Technology-infused deals that carry the promise of transformational returns will likely continue to be attractive, and strategic buyers may be well-positioned to take advantage of such opportunities. Additionally, investments in last-mile delivery capabilities are likely to remain a key focus for companies, as e-commerce purchases have shifted from traditional “big and bulky” goods and non-perishables to food and beverage products and pharmaceuticals.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a8346911-2768-4bf3-bd0f-6c130fc8f120", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.135, "w": 0.327, "x": 0.036, "y": 0.448 }, "kind": "paragraph", "text": "The decarbonisation of transport, which was in focus of this issue of the T&L Barometer, will be of high relevance far beyond the year ahead. We expect to see increased strategic partnerships and alliances to match competencies and share investment risks. It is to be monitored closely to what extent logistics companies will go into a leading role in such partnerships and actively drive industry transformation with customers and suppliers.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dbd5f444-24b1-42a5-8cd8-fc56c720c38c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.258, "x": 0.036, "y": 0.725 }, "kind": "source-note", "text": "Sources: Transport Intelligence, S&P Global Market Intelligence", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1f0ffcf4-0e7f-4a3d-a8f5-c74953d85aaf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.022, "w": 0.327, "x": 0.036, "y": 0.133 }, "kind": "title", "text": "Transformation driving deals and strategic partnerships", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "68295f9d-1010-4d76-aad5-295bf18c9d30", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.018, "w": 0.166, "x": 0.036, "y": 0.593 }, "kind": "title", "text": "Moderate growth in M&A", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d7116c6d-76c1-487f-954f-3a2171b20130", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Problem-Agitate-Solve (PAS)", "slug": "problem-agitate-solve-pas", "agent": "Storyteller", "layer": "slide", "matchId": "0bbf5a69-f0d7-41d1-919f-cc4b106418d2", "evidence": "Current market conditions may continue to give strategic buyers an edge.", "confidence": 0.6 }, { "name": "Story Moments", "slug": "story-moments", "agent": "Storyteller", "layer": "slide", "matchId": "bd8873cf-debd-451c-97c4-2a5acb31b586", "evidence": "Transformation driving deals and strategic partnerships", "confidence": 0.5 } ], "frameworks": [], "arcBeats": [ { "to": 39, "from": 28, "beatId": "76fce188-9967-4cd8-9142-1e81cbfd2486", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Satisfaction", "beatSlug": "monroes-sequence-satisfaction", "evidence": "The deck concludes with an outlook and appendix, providing satisfaction and a comprehensive understanding of the industry.", "position": 4, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [ { "to": 39, "from": 28, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "344de637-8872-4911-b305-a46f830eb749", "evidence": "The deck presents an outlook and appendix, highlighting the consequences of inaction.", "position": 2, "objective": "What are the consequences of not transforming the transport and logistics industry?", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }