< Previous58 SEPTEMBER 2018 SI T E S E L E C T IO Non the power of infrastructure alone.We reached out to CG/LA President Norman Anderson and his team this summer, acquiring exclusive access to their database tracking more than 2,000 projects. Site Selection Database Administrator Daniel Boyer took it from there, building an index incorporating cost and location data from CG/LA alongside Site Selection’s corporate facility location and capital investment data from the past three calendar years, performing tally and per-capita calculations.The result: Site Selection’s inaugural Global Groundwork Index, casting the spotlight on territories where crucial infrastructure is already making an impact on doing business and quality of life. In addition to the Top 10 Countries and Top 10 U.S. States in that overall blend of calculations across both data sets, we also present the Top 10s based on CG/LA data only. We think you’ll find it useful as you evaluate territories for your next corporate project.On the following pages is an exclusive commentary on the state of infrastructure by CG/LA President Norman Anderson. — Adam Bruns, Managing Editor, Site Selection 1 Canada 2 United States 3 Australia 4 United Arab Emirates 5 Bahrain 6 Mexico 7 Costa Rica 8 Brazil 9 United Kingdom 10 SingaporeTOP TENOverall Infrastructure & Corporate Facility IndexBY COUNTR YSOURCES FOR CHARTS ON PP. 58, 60, 62, & 64: Conway Analytics’ Conway Projects Database qualifies facility investments involving new construction from corporate end users that meet one of three criteria: at least $1 million invested; at least 20 new jobs created; or at least 20,000 new sq. ft. of space. Entries in the GViP projects database are created by both project executives at the sponsoring agencies or their affiliates, and CG/LA’s own research team. Primary sources include national, state and local agencies of transportation, finance ministries, utilities, city water companies, and private-sector project developers. Additional sources include development banks, investment promotion agencies and private-sector market participants such as consulting firms and engineering, procurement and construction companies.The Texas Central Railway will use the same Central Japan Railway Company high-speed technology deployed in this N700 bullet train shown crossing in front of Mt. FujiPhoto courtesy of Texas Central Railway60 SEPTEMBER 2018 SI T E S E L E C T IO NThe world is going through a massive change in how infrastructure is funded and managed, and what infrastructure we build. e public sector is becoming less a source of funding, and more a manager of the performance of privately funded, operated and maintained assets. Keeping a pulse on who is building the right infrastructure in the right places is critical for long-term success, and we see clear winners and losers at this stage. Start with the funding issue. e world is moving from public to private funding of infrastructure, and this means that we need to create new ways of thinking, and new institutions, to support and channel not just private investment, but the creation of projects that attract private investment, i.e. projects that are bankable.Canada — a country that has made three signi cant moves toward the creation of a new infrastructure paradigm — is one of the clear winners. First, Canadian pension funds have taken to supporting private investment around the world, with Ontario Teachers leading the way. Second, Canada has created provincial public enterprises — like Infrastructure Ontario — that are enormously 1 Texas 2 Louisiana 3 Nebraska 4 Virginia T5 Georgia T5 Pennsylvania 7 Illinois 8 Iowa 9 New York 10 North CarolinaTOP TENOverall Infrastructure & Corporate Facility IndexBY ST A TESCORE 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100 No dataVery cleanHighly corrupt135 Russia29143 Bangladesh28143 Guatemala28143 Kenya28143 Lebanon28143 Mauritania28148 Comoros27148 Guinea27148 Nigeria27151 Nicaragua26151 Uganda26153 Cameroon25153 Mozambique25155 Madagascar24156 Central African Republic23157 Burundi22157 Haiti22157 Uzbekistan22157 Zimbabwe22161 Cambodia21161 Congo21161 Democratic Republic of Congo21161 Tajikistan21165 Chad20165 Eritrea20167 Angola19167 Turkmenistan19169 Iraq18169 Venezuela18171 Korea (North)17171 Equatorial Guinea 17171 Guinea Bissau17171 Libya17175 Sudan16175 Yemen16177 Afghanistan15178 Syria14179 South Sudan12180 Somalia9RANK COUNTRY/TERRITORY SCORE96Thailand3796Zambia37103 Bahrain36103 Côte D'Ivoire36103 Mongolia36103 Tanzania36107 Armenia35107 Ethiopia35107 Macedonia35107 Vietnam35111 Philippines34112 Algeria33112 Bolivia33112 El Salvador33112 Maldives33112 Niger33117 Ecuador32117 Egypt32117 Gabon32117 Pakistan32117 Togo32135 Kyrgyzstan29135 Laos29135 Mexico29135 Papua New Guinea29135 Paraguay29122 Azerbaijan31122 Djibouti31122 Kazakhstan31122 Liberia31122 Malawi31122 Mali31122 Nepal31122 Moldova31130 Gambia30130 Iran30130 Myanmar30130 Sierra Leone30130 Ukraine30135 Dominican Republic29135 Honduras29RANK COUNTRY/TERRITORY SCORE59Romania4862Cuba4762Malaysia4764Montenegro4664Sao Tome and Principe4666Hungary4566Senegal4568Belarus4468Jamaica4468Oman4471Bulgaria4371South Africa4371Vanuatu4374Burkina Faso4274Lesotho4274Tunisia4277China4177Serbia4177Suriname4177Trinidad and Tobago4181Ghana4081India4081Morocco4081Turkey4085Argentina3985Benin3985Kosovo3985Kuwait3985Solomon Islands3985Swaziland3991Albania3891Bosnia and Herzegovina3891Guyana3891Sri Lanka3891Timor-Leste3896Brazil3796Colombia3796Indonesia3796Panama3796Peru37RANK COUNTRY/TERRITORY SCORERANK COUNTRY/TERRITORY SCORE40Saint Vincent and the Grenadines5842Cyprus5742Czech Republic5742Dominica5742Spain5746Georgia5646Malta5648Cabo Verde5548Rwanda5548Saint Lucia5551Korea (South)5452Grenada5253Namibia5154Italy5054Mauritius5054Slovakia5057Croatia4957Saudi Arabia4959Greece4859Jordan4821Estonia7121United Arab Emirates7123France7023Uruguay7025Barbados6826Bhutan6726Chile6728Bahamas6529Portugal6329Qatar6329Taiwan6332Brunei Darussalam6232Israel6234Botswana6134Slovenia6136Poland6036Seychelles6038Costa Rica5938Lithuania5940Latvia581New Zealand892Denmark883Finland853Norway853Switzerland856Singapore846Sweden848Canada828Luxembourg828Netherlands828United Kingdom8212Germany8113Australia7713Hong Kong7713Iceland7716Austria7516Belgium7516United States7519Ireland7420Japan73RANK COUNTRY/TERRITORY SCOREwww.transparency.org/cpiCORRUPTIONPERCEPTIONSINDEX 2017The perceived levels of public sector corruption in 180 countries/territories around the worldABOVE: Higher degrees of corruption mean lower infrastructure investment levels and higher costs.62 SEPTEMBER 2018 SI T E S E L E C T IO Nefficient producers of bankable projects. Third, just last year Canada launched its National Infrastructure Bank, a new institution that fills in the gaps both on the pipeline side — identifying necessary projects that for some reason haven’t attracted private investment — and on the funding side, where needed infrastructure (in rural areas, for example) is not attracting needed funding.If the best — or at least adequate — infrastructure is increasingly the result of countries creating sophisticated machinery for creating and funding projects, there is an increasingly profound management issue. We see public sectors in every country playing a growing role. This may seem counterintuitive, when the goal is to bring more private investment to infrastructure, but the results of infrastructure are … public goods, and so the public sector is increasingly being revamped in order to optimize the performance of infrastructure assets for the public’s benefit over a period of 30-40 years. Countries that stand out in this exercise include not only Canada and Australia, but also the UK, and especially Singapore.There also is a new entrant on the scene: technology. Trimble Connect, for example, 1 Chile 2 Canada T3 Brazil T3 Kuwait 5 United States 6 Bahrain 7 Colombia 8 Qatar 9 Panama 10 PeruTOP TENInfrastructure IndexBY COUNTR YThe Gordie Howe Bridge will be the latest to connect the U.S. and Canada.Photo courtesy of Fluor64 SEPTEMBER 2018 SI T E S E L E C T IO Nallows the public sector to create a “digital spine,” enabling an almost perfect view of a project, thus increasing the ability to manage it and the visibility of the project to the public, and decreasing the likelihood of cost overruns. Countries on the forefront of digitalization will be those building projects better, faster and as much as 15 to 20 percent cheaper. As one leading CEO said to me recently, “If you can’t measure it, you can’t manage it.” Now, for the first time, the public sector truly can manage it.The third big issue is the infrastructure that we build. What do people want? In a recent Ipsos poll conducted for CG/LA in answer to the question “What does infrastructure investment mean to you?” 37 percent of 1,500 Brazilian respondents answered ‘mobility,’ and 36 percent answered ‘health,’ while only 4 percent said ‘highways, rail and bridges.’ People focus on the benefits of infrastructure, and those nations with stronger democracies tend to be better bets for long-term infrastructure project creation.Looking for Leaders? Look to the States.In terms of the United States, states with 1 New York 2 Nebraska T3 California T3 Washington T5 Louisiana T5 Colorado 7 Texas 8 Virginia 9 District of Columbia 10 AlaskaTOP TENInfrastructure IndexBY ST A TEABOVE: Garden City Terminal, Port of Savannah, GeorgiaPhoto courtesy of Georgia Ports AuthorityContinued on page 7066 SEPTEMBER 2018 SI T E S E L E C T IO NIn March, CG/LA, in partnership with construction management platform Aconex, announced the winners of the 2018 Infrastructure Project of the Year Awards at the 11th Global Infrastructure Leadership Forum in Montréal. On the heels of Quebec’s historic $100-billion infrastructure spending plan, the awards recognize early-, mid- and active-stage projects across five categories. Systemic solutions are identified for their outstanding commitment to strategic advancement, sustainability, engineering, opportunity creation, and finance in the face of an ever-increasingly competitive global market.Canada’s high-frequency VIA Rail took home this year’s award in sustainability for its pioneering work in furthering environmental responsibility, safety, and ethical development. The Bogotá Metro, the first elevated rail line of the Colombian capital, won first place in strategic advancement and opportunity creation. Construction on the u-shaped viaduct, commissioned for 2022 following a 70-year planning history, will provide up to 72,000 Colombian passengers with access to the city center per hour. Construction is expected to commence by the end of 2018 and will undoubtedly spur overall economic welfare and job creation in the region.Virgin’s Hyperloop One took home first place in the engineering category for the Kansas City-to-St. Louis Hyperloop project, a high-speed route along the I-70 corridor between the two cities developed in concert with Missouri’s Amazon HQ2 bid. Through a combination of low-pressure tubing and electromagnetic propulsion, among other engineering coups, the revolutionary commercial project promises to compress hundred-plus mile long trips to under an hour by 2021.The Budapest-Belgrade Railway, part of China’s Belt and Road Initiative, was awarded first place in the finance category. The $900-billion project is an important international railway between the capital cities of Serbia and Hungary and will serve as a main transport route for Chinese trade.The Réseau Electrique Metropolitain (REM) project in Greater Montréal is one example of Canadian infrastructure bringing new opportunity to locations such as Technoparc Montréal, near Montréal–Pierre Elliott Trudeau International Airport.Rendering courtesy of REMAWARD WINNERSContinued on page 68Next >