Chugging ahead • Chapter summary
Spain’s transport sector reached an alltime high of EUR67 billion in 3Q2019, according to the National Statistics Institute (INE). The sector is forecast to continue on this trajectory of growth well into 2020 as investment into infrastructure and transport links increase, promising to create more jobs and increase the proportion of the nation’s GDP that it corresponds to.
One sure way to increase these figures is to complete the construction of the Mediterranean Corridor, the main east-west axis that runs from Spain all the way through to the Ukrainian-Hungarian border. After years of delays, the corridor began to make headway, particularly in Catalonia, in 2018. A major recent development has been the release of a tender by Adif, Spain’s manager of rail infrastructure, to complete civil works in the eastern region of Valencia by 2022.
The success of this sector is fundamental to the state’s economy as it has the power to influence all other sectors. We interviewed the Minister of Development José Luis Ábalos for this chapter. He was of the view that investment in railways and the Mediterranean Corridor fulfill an important social function for the territory and must be considered critical state policy, as they serve to strengthen the Spanish economy in sectors including tourism, industry, agriculture, and logistics.
An added factor is the technological revolution, which has a two-fold impact on transportation. On one hand, it means that the processes of transportation are more efficient: companies are pushing the digitalization of pick-up and delivery services, as well as using AI in logistic centers, to create more traceability of goods. On the other hand, as e-commerce continues to grow in popularity, demands on the sector’s output are also growing.
Another major challenge is the urgent need to reduce global emissions as transport has traditionally been considered one of the most polluting sectors in the world. In 2016, the EU estimated that it was responsible for 27% of total emissions. As companies aim to respond to the public’s growing demand for action, sustainability plans become a priority, and new companies with business models that promise sustainable alternatives play an increasingly important role. ✖