PBI has drawn on WealthInsight’s research to analyse a specific industry which plays a major part in driving high net worth wealth creation. This month PBI looked at transport and logistics in Canada, the US, Turkey, Brazil, South Africa and Mexico.
The transportation and logistics industry forms the backbone of many economies and modern global supply chains.
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Logistics provides the efficient, cost effective flow of goods on which other commercial sectors depend. Trade facilitation is a crucial feature to the economic development of a country: having a better logistics helps the country’s economy growing faster and becoming more competitive.
In an age of increasing competiveness in global trade networks, it is also essential for companies to adapt to new technologies in order to improve operational effectiveness and reduce costs. Globalisation and the higher global population density and GDP in some regions have been challenging the industry, forcing to plan new and massive investments to supply the flow of goods and people.
As for other major industries, the so-called emerging markets are reshaping transports and logistics, creating new and stronger passageways such as the ones connecting Asia and Africa, Asia and South America and within Asia.
As a result the industry continues to be an active actor in the creation of HNWI and UHNWIs in some key developed countries with the addition of new emerging players.
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By GlobalDataKey geographies
Countries with an efficient trade service, strategic geographic collocation, reliable supply chains, competitive distribution costs, and high technology are a hub for investors in the transport and logistics sector.
In Canada transport and logistics is in second place as primary source of wealth for 20% of HNWIs, according to WealthInsight. Transport and logistics also includes Canada’s large aviation industry. Between 2007 and 2012, the number of HNWIs deriving their wealth from transport and logistics increased by 5%, against the big drop of 14% of HNWIs acquiring wealth from financial services.
| Name | Wealth (US$bn) | Sector | City of Residence |
|---|---|---|---|
| Mr. Ronald D. Southern | 1.8 | Transport & Logistics | Alberta |
| Mr. Paul Desmarais | 2.6 | Transport & Logistics | Sudbury, Ontario |
Transport and logistics is the primary source of wealth for 4,088, or 10.4%, of US UHNWIs as of 2011. Florida, in particular, has the highest percentage of UHNWIs deriving their wealth from the sector (28.3%). Despite the relatively high percentage of US UHNWIs, transport and logistics UHNWIs dropped by 23.4% during the financial crisis.
| Name | Wealth (US$bn) | Sector | City of Residence |
|---|---|---|---|
| Mr. Jack Crawford Taylor | 13.3 | Transport & Logistics | St. Louis, Missouri |
| Mr. Frederick Wallace Smith | 3.4 | Media, Transport & Logistics |
Marks, Mississippi |
| Mr. Frederick W. Smith | 2.1 | Tech & Telecommunications, Transport & Logistics |
Memphis, Tennesee |
Logistics overall is a young sector in Turkey which has made progress in recent years. Thanks to its advantageous position connecting Middle East to Europe, Turkey provides an ideal transfer centre between these regions. The Turkish logistics market has experienced a 20% growth rate during the last five years and is forecast to increase to US$ 120 billion by 2015, according to Capital Magazine. 10.2% of Turkish UHNWIs derive their wealth from transport and logistics.
| Name | Wealth (US$bn) | Sector | City of Residence |
|---|---|---|---|
| Mr. Hüsnü Özye?in | 3 | Financial services, Transport & Logistics, Real estate | Istanbul |
| Mr. Mubariz Gurbanoglu | 1.4 | Transport & Logistics | Masalli, Azerbaijan |
Transport and logistics is an important sector accounting for 10.2% of Brazilian UHNWIs in 2011. According to the World Bank, for Brazil, the relevance of the logistics system is high; exports and imports account for 15% and 12% respectively of its GDP. WealthInsight found that 9.1% of Brazilian transport and logistics UHNWIs live in Sao Paulo.
| Name | Wealth (US$bn) | Sector | City of Residence |
|---|---|---|---|
| Mrs. Ana Maria Marcondes Penido Sant’anna | 2.6 | Transport & Logistics | Sao Paulo |
| Mrs. Rosa Evangelina Marcondes Penido Dalla Vecchia | 1.1 | Transport & Logistics | Sao Paulo |
| Mr. Eike Fuhrken Batista da Silva | 970 m | Basic Materials, Transport & Logistics |
Rio de Janeiro |
South Africa will become the starting point of a new transport corridor to Asia. According to a recent report by PwC, global trade in goods and services in South Africa is likely to rise more than threefold to $27 trillion in 2030. Transport and logistics is the primary source of wealth for 9.9% of South African UHNWIs, and it is the largest sector for UHNWIs (17%) in the city of Cape Town.
| Name | Wealth (US$bn) | Sector | City of Residence |
|---|---|---|---|
| Lauritz Dippenaar | 750 m | Transport & Logistics | Johannesburg |
| Mr. Ivan Arthur James Clark | 237 m | Transport & Logistics | Johannesburg |
Mexico has an expanding and sophisticated transport and logistics market especially drove by multinationals’ investments. Transport and logistics was among the fastest -growing sectors in Mexico between 2007 and 2011, according to WealthInsight. It is the primary source of wealth for 8.3% UHNWIs.
| Name | Wealth (US$bn) | Sector | City of Residence |
|---|---|---|---|
| Mr. German Larrea Mota Velasco | 15.2 | Mining, Transport & logistics | Mexico City |
| Mr. Carlos Hank Rhon | 1.9 | Financial Services & Investments, Transport& logistics | Mexico City |
