Overall first quarter deal volume approximated the same level as the fourth quarter; although deal values increased significantly. There were five mega deals putting the sector on pace to exceed the 11 mega deals announced last year. Logistics and passenger air modes drove overall deal value, while the shipping deal activity receded. Road concessions contributed to a high level of passenger ground deals. Transportation infrastructure investments gained steam, hitting a historic high as three of the five mega deals involved Brazil’s largest airports.
In 2012, infrastructure, shipping and logistics will all likely contribute to deal flow. Overcapacity and weak pricing have increased calls for consolidation across the shipping mode. Russian privatizations in shipping, rail and airlines could drive deals as well. Overall transportation and logistics deal activity seems more likely to rise than fall given continued global economic expansion and the secular trend of rising infrastructure concessions.