As the emerging consumer markets in the global economy continue to grow, they still face many challenges in order to keep them growing well into the future. It ultimately boils down to meeting the demand of the increasing amount of supplies that is coming and going in their individual markets. Few government officials would argue that an effective transportation system is critically necessary to keep their domestic economies running at full throttle. Without a dependable infrastructure in place, their potential for economic growth could invariably suffer in both the short and long term.
There have been many reports this year that emerging markets, such as Brazil, India, Africa, Mexico and Russia, have some serious investments that still must be made into their port systems or they will face inevitable slowdowns due to backlogs. Brazil, India and Mexico have finally made announcements that they will be spending tens of billions of dollars to modernize and upgrade their ports to put them in a better position to compete and facilitate their growing economies well into the future. Some countries in Africa are just starting to get foreign funding and much-needed guidance to help them build and improve some key ports, in strategic locations. While it has taken some time for these nations to finally get their port systems updated, it is a case of better-late-than-never.
In Russia, a new study recently released, suggested that Russian ports will see a doubling of their cargo volume by the year 2030; with an expected increase of container volumes of up to 5.5 times in the same time period. This prediction has forced the Russian government to take a focused look at what is going to be required, with regards to port, transportation and infrastructure investments to facilitate the anticipated growth. The country’s new Sea Port Infrastructure of Russia Development Strategy to 2030 will address the imminent needs by implementing a plan to build new port terminals, develop and improve their existing facilities, and includes the reconstruction of road and rail infrastructure. Although these investments are expected to be in the tens of billions of dollars, they are regarded as essential if the nation is going to continue to grow, and harness it’s enormous potential.
When building a nation’s economy, regardless of where they are in the world, the right investments have to be made. While it may seem that some may be slow in making the required investments, these emerging markets are now doing what is best in order to lay a solid foundation for future growth and creating opportunities that are delivering steady returns to investors all over the world. These port, infrastructure and transportation investments will not only pay off in the long term but also they are creating even more economic stimulus in the short term, which is further fueling the region's growth potential. In doing so, emerging markets will continue to make sizable contributions to the global economy, and make investments that give their population the best possible opportunity to prosper in the future.