Friday, March 21, 2014

$57 trillion: to maintain and build world's infrastructure between now and 2030

It will cost $57 trillion to build and maintain the world’s roads, power plants, pipelines and the like between now and 2030, reckon consultants at McKinsey (see chart). That is more than the value of today’s infrastructure. By one estimate, infrastructure spending currently amounts to $2.7 trillion a year (about 4% of global output), yet $3.7 trillion is needed.
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Infrastructure financing

If you live in the U.S. like I do most of the Highways in the western United States are okay. (I don't spend enough time in the east to know how highways are doing there). However, bridges all over the U.S. are generally not okay and more and more seem to rust out and fall down because they are too old or they were not painted regularly enough to prevent rust or other things like that. Any way you look at it some bridges in the U.S. just aren't safe anymore and you can't always tell this by looking at them (if you aren't an engineer that understands this kind of thing). The first clue is the age of the bridge and the second clue is to look at it carefully. Just driving over bridges without being aware in what shape they are in doesn't make any sense does it? Aren't our lives more important than that?

 

But, like it mentions in the quote above, to build and to maintain what already exists worldwide will cost much more than the actual value of today's infrastructure worldwide.

And in the U.S. labor and material costs are now too high for us to be able to afford to replace things like bridges because they are now too expensive to build or to repair to be cost effective at present material and labor costs.

One alternative is sort of like building cell phone towers worldwide instead of stringing millions of miles of telephone lines. You stop putting so much work into roads and bridges and just create helicopter like devices for people to fly places instead. This might be more and more what happens worldwide as building costs increase in all countries along with labor costs.

And along side of this there likely will be much more public transportation being built worldwide as well.

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