Principal Markets - Infrastructure

Our infrastructure services create the conditions for efficient transportation and healthy places to live and work. By working on high-quality railways, road networks (including tunnels and bridges), reliable energy supply and development of land for different purposes, ARCADIS' infrastructure professionals bring stability, mobility and a better quality of life to communities around the world.

Clients

In Infrastructure, most of our work is for governments: municipalities, cities, provinces, states, ministries, etc. We also work for utilities, project developers, contractors and other private sector firms.

Socio-economic drivers and changing client needs driving growth

Quality of life.
As living standards increase, people want a higher quality physical environment. This leads to higher investment levels in the built environment, measures to conserve or upgrade nature and landscape, and sustainability as being inherent to quality.

Present position and strategy

Building on strong local strength
The infrastructure market is predominantly a local market, servicing national, regional and local governments, but also railway companies, utilities, mining firms, developers and contractors. In-depth knowledge of local conditions and client needs is critical for success. ARCADIS has built strong home market positions in many European countries, the United States and Brazil and Chile. This enables us to anticipate market developments, deliver integrated, tailored solutions and leverage specialized global expertise.

Ambition and Targets

Our ambition is to be a recognized global player, leading in selected segments, providing integrated solutions, with strong home market positions. Our organic growth target is 3 – 5% per year with margins of 8 – 9%.

Infrastructure strategy 2011 – 2013

We have identified three pillars to achieve our ambitions:

• Organic growth by leveraging our world class capabilities. Focus will be on:
  
  • - Large transportation corridors and PPP. We have a strong track record in large projects, including bridges and tunnels. In several European countries we have experience with Public-Private Partnerships (PPP) and Design-Build. As the market for large projects will shift towards PPP's, we can capitalize on our experience in developing smart, integrated solutions.
  • - Public transportation. We are an expert in rail infrastructure, with a unique combination of civil engineering and rail systems skills.
  • - Ports and waterways. With our strong front endconsultancy and design capabilities we can get involved at the early phases of projects.
  • - Intelligent Transportation Management. Demand for intelligent traffic solutions and systems is increasing, an area where we have specialist expertise.
• Organic growth by building upon local presence. The markets for local infrastructure in Europe and the United States are under pressure, but large projects offer opportunities for growth, especially through alternative delivery schemes. Investments in (renewable) energy projects are growing and with our integrated services offering we will benefi t from these investments. In Brazil and Chile, infrastructure investments continue, with the 2016 Olympic games in Brazil being a strong driver for further acceleration.
• Mergers and acquisitions to build global position. In order to become a real global player in the infrastructure market, we need acquisitions, either in transportation or in mining. Expansion in transportation should get us involved in major projects in emerging markets, while mining would allow us to leverage relationships with private clients and benefi t from the growing demand for raw materials. In addition, we will strengthen our efforts in work sharing of lower added-value services in order to increase competitiveness and efficiency.

Recent results

Amounts in millions of euros

Outlook

In the infrastructure market ARCADIS works on large projects, based on multiyear programs for which financing is secured. Examples are the A2 through Maastricht, the upgrading of the Dutch rail system, the high speed railway line Tours-Bordeaux and the subway in Rennes. For new projects, interest in PPP is strongly increasing, while demand for intelligent traffic systems is also on the rise. The situation in local markets is not expected to improve soon, with prices remaining under pressure as a result. In Brazil and Chile, recently won large assignments lay the groundwork for solid growth. The World Soccer Championship (2014) and Olympics (2016) will give Brazil an additional push.