Before Another Bridge Falls- ny times on infrastructure

[jk]

editorial in the ny times:

Before Another Bridge Falls

Published: February 23, 2008
Nearly seven months after a highway bridge collapsed in Minneapolis, a federal commission put a jaw-dropping price tag on starting to attend to America’s crumbling foundations: $225 billion a year for the next 50 years just to maintain and upgrade surface transportation



[and so on, emphasis added]
http://www.nytimes.com/2008/02/23/op...ml?ref=opinion



that pricetag sounds about just right, just what we need to offset housing-credit losses and such.

[Jim Nickerson]

Re: Before Another Bridge Falls- ny times on infrastructure

editorial in the ny times:

Before Another Bridge Falls

Published: February 23, 2008
Nearly seven months after a highway bridge collapsed in Minneapolis, a federal commission put a jaw-dropping price tag on starting to attend to America’s crumbling foundations: $225 billion a year for the next 50 years just to maintain and upgrade surface transportation



[and so on, emphasis added]
http://www.nytimes.com/2008/02/23/op...ml?ref=opinion



that pricetag sounds about just right, just what we need to offset housing-credit losses and such.

Has anyone figured out how to play the apparently "done deal" in infrastructure spending?

I'm primarily interested in ETf's or at least single investment ideas (that would be some mutual funds) that offer diversification.

[Slimprofits]

Re: Before Another Bridge Falls- ny times on infrastructure

The National Surface Transportation Policy and Revenue Study Commission

Mary Peters	Secretary of Transportation—Chairperson	[ Read Bio ]
Frank Busalacchi	Wisconsin Secretary of Transportation	[ Read Bio ]
Maria Cino	Former Deputy Secretary of Transportation	[ Read Bio ]
Rick Geddes	Director of Undergraduate Studies, Cornell University Dept. of Policy Analysis and Management	[ Read Bio ]
Steve Heminger	Executive Director, Metropolitan Transportation Commission	[ Read Bio ]
Frank McArdle	Senior Advisor, General Contractors Association of New York	[ Read Bio ]
Steve Odland	Chairman and CEO, Office Depot	[ Read Bio ]
Patrick Quinn	Co-Chairman, U.S. Xpress Enterprises, Inc.	[ Read Bio ]
Matt Rose	CEO, Burlington Northern Santa Fe Railway	[ Read Bio ]
Jack Schenendorf	Of Counsel, Covington & Burling-Vice Chair	[ Read Bio ]
Tom Skancke	CEO, The Skancke Company	[ Read Bio ]
Paul Weyrich	Chairman and CEO, Free Congress Foundation	[ Read Bio ]

Final Report - Volume I: Recommendations

The table below summarizes ranges of potential investment levels for different modes for the time periods 2005 to 2020, 2020 to 2035, and 2035 to 2055. See Chapter 4 of Volume II for a complete discussion of these analyses and findings.

Vision for the future: U.S. intercity passenger rail network through 2050

This map identifies the passenger rail network that corresponds to the long-term capital costs and ridership projections identified in Exhibit 4-17. The PRWG describes this map as illustrative, as the exact routes that would be included in such a network could differ. Source: Vision for the future: U.S. intercity passenger rail network through 2050, prepared for the Commission by the Passenger Rail Working Group.

Report prepared by the Passenger Rail Working Group for the National Surface Transportation Policy and Revenue Study Commission in December 2007

States for Passenger Rail Coalition


and check out Bill's post here

[DemonD]

Re: Before Another Bridge Falls- ny times on infrastructure

Jim: General Electric gets about 40% of it's profits from infrastructure business.

Macquerie (MIC) is the australian company that invests in US infrastructure and pays a nice dividend.

As far as ETFs, I would recommend one of the water ETF's. Most of the companies in these ETF's are infrastructure-based, and I've gone through the list of companies (some with more extensive research than others), and most if not all of the companies appear to be high quality outfits.

I know I promised I'd give you guys a real drill down on infrastructure stocks, but I never did it. I'm lazy. Just being honest. But, just for you Jim, I'm going to put a new thread specifically dedicated to water investing (I wrote that one for a blog on a different site, I think it would be fair to share it here).

[Jim Nickerson]

Re: Before Another Bridge Falls- ny times on infrastructure

Jim: General Electric gets about 40% of it's profits from infrastructure business.

Macquerie (MIC) is the australian company that invests in US infrastructure and pays a nice dividend.

As far as ETFs, I would recommend one of the water ETF's. Most of the companies in these ETF's are infrastructure-based, and I've gone through the list of companies (some with more extensive research than others), and most if not all of the companies appear to be high quality outfits.

I know I promised I'd give you guys a real drill down on infrastructure stocks, but I never did it. I'm lazy. Just being honest. But, just for you Jim, I'm going to put a new thread specifically dedicated to water investing (I wrote that one for a blog on a different site, I think it would be fair to share it here).

I'm lazy too, that is why I posed the question, DemonD. Thanks for your reply, and I look forward to your new thread.

Just now, I actually have tried to find some ETF's that may be applicable and after I look at them a bit more, I'll put them all up later today or night, must nap now.

[Jim Nickerson]

Re: Before Another Bridge Falls- ny times on infrastructure

I actually got around to looking for some ETFs that may be ways to invest in infrastructure that are not necessarily the best (if anyone knows what is best, then put it up here), but to me ways to probably go until something else comes along.

http://www.ishares.com/product_info/...ldings/IGF.htm IGF Global Infrastructure Index Fund

http://www.ishares.com/product_info/...ldings/MXI.htm MXI Global Materials Index Fund

http://www.ishares.com/product_info/...ldings/EXI.htm EXI Global Industrial Index Fund

Here are some clean and alternative energy plays.

http://www.powershares.com/products/...spx?ticker=PUW PUW Wilderhill Progressive Energy Portfolio

http://www.powershares.com/products/...spx?ticker=PBW PBW Wilder Clean Energy Portfolio

http://www.vaneck.com/index.cfm?cat=...kr=GEX&LN=3-03 GEX Global Alternative Energy.

http://www.vaneck.com/index.cfm?cat=...kr=NLR&LN=3-03 NLR Nuclear Energy.

I own some GEX and NLR. I note that Van Eck Global has a coal fund, of which I had not previously been aware. Looking at a chart, it just opened up in January.

http://www.vaneck.com/index.cfm?cat=...kr=KOL&LN=3-03 KOL

For anyone who thinks industrials and materials are sectors that will fit into the "done deal" of infrastructure rebuilding in the US and want concentration here, there are the funds XLI and XLB.

If anyone doesn't already know http://www.etfconnect.com
is a good place to start looking at ETFs and closed end funds.

So far as I know there is not yet a fund that is focused on specifically building or rebuilding US infrastructure.

[Jim Nickerson]

Re: Before Another Bridge Falls- ny times on infrastructure

Jim: General Electric gets about 40% of it's profits from infrastructure business.

Macquerie (MIC) is the australian company that invests in US infrastructure and pays a nice dividend.

As far as ETFs, I would recommend one of the water ETF's. Most of the companies in these ETF's are infrastructure-based, and I've gone through the list of companies (some with more extensive research than others), and most if not all of the companies appear to be high quality outfits.

I know I promised I'd give you guys a real drill down on infrastructure stocks, but I never did it. I'm lazy. Just being honest. But, just for you Jim, I'm going to put a new thread specifically dedicated to water investing (I wrote that one for a blog on a different site, I think it would be fair to share it here).

From what I can find MIC seems to be more into management and ownership of infrastructure assets than it is into building them. http://www.macquarie.com/mic/ I really have not stumbled upon any clear definition of what exactly it is into doing.

Looking at its chart, it seems not to be diverging any from the recent downtrends of the markets in general.

[Jim Nickerson]

Re: Before Another Bridge Falls- ny times on infrastructure

Possible support for international or global infrastructure investment.
http://www.investmentpostcards.com/2...2008/#more-486

From Prieur du Plessis

GaveKal: Industrial metal prices rising strongly
“Industrial metal prices have risen +12% YTD. In addition, major Asian steel manufacturers have started signing contracts to purchase iron ore for +65% above the previously determined price (and upcoming contracts, such as the ones with Rio Tinto, may be significantly more expensive). Moreover, after two and a half months of declines (largely due to the hold-up for iron ore negotiations), Baltic freight rates have rebounded +22% this month.

“At first glance, these price movements may seem odd, given the widespread anticipation of a global slowdown and the possible weakening of exports from Asia. Where are shipping rates and industrial metals finding their support? To a large degree, we think the above strength can be explained by what is currently unfolding in China, and elsewhere in Asia.

“For a start, accelerating inflation across Asia and Arab countries is triggering a massive rush to improve public infrastructures. Over the past month, China’s CPI rose to a new ten-year high of +7.1% YoY in January (higher than December’s +6.5% reading and November’s +6.9%). This puts Beijing in an awkward position: With the credit crunch continuing to spread, with global demand slowing, and with the added strains from the recent snowstorm, Chinese policymakers are more reluctant to fight inflation with aggressive credit tightening. Instead, we have argued that China (along with other Asian and Arab countries) will try to fight inflation by plowing money into infrastructure projects and hoping for efficiency gains (with the model here being the deployment of the US interstate highways system in the 1950s and its consequent impact on productivity gains, distribution costs, production costs, etc …).

“… betting on a continued increase in Asian and Arab infrastructure spending, along with faster currency appreciation, makes sense.”
Source: GaveKal – Checking the Boxes, February 19, 2008.

[jk]

Re: Before Another Bridge Falls- ny times on infrastructure

touchring, i think, suggested looking out for a post-olympics slump in chinese construction. something to keep in mind. otoh, all the money flowing to oil exporters has got to be supporting major spending.

[zoog]

Re: KOL

...I note that Van Eck Global has a coal fund, of which I had not previously been aware. Looking at a chart, it just opened up in January.

http://www.vaneck.com/index.cfm?cat=...kr=KOL&LN=3-03 KOL

Read an article about this new coal fund which was somewhat critical. For example, the #15 holding is a power company which consumes coal. If you think coal prices are going up, you probably don't want to be holding the stock of a company which needs to buy lots of coal. There were some other companies in the fund that seemed questionable as well. Too bad it's not purely a coal mining fund, or mining along with "clean coal" technology companies.

[Jim Nickerson]

Re: KOL

Read an article about this new coal fund which was somewhat critical. For example, the #15 holding is a power company which consumes coal. If you think coal prices are going up, you probably don't want to be holding the stock of a company which needs to buy lots of coal. There were some other companies in the fund that seemed questionable as well. Too bad it's not purely a coal mining fund, or mining along with "clean coal" technology companies.

Zoog, did you attempt to check out that possibility in regard to the #15 power company? I don't know which, if any, companies have some clean technology for burning coal.

[zoog]

Re: KOL

Zoog, did you attempt to check out that possibility in regard to the #15 power company? I don't know which, if any, companies have some clean technology for burning coal.

I didn't. That company is Huaneng Power, apparently the largest power generator in China. Looks like they are involved in a "clean coal" operation:

Peabody Energy (NYSE: BTU) became the only non-Chinese equity partner in "GreenGen," the first near-zero emissions coal-fueled power plant with carbon capture and storage (CCS) which is under development in China.

The US$1 billion GreenGen project will use advanced coal-based technologies to generate electricity for Chinese families and businesses using China's most abundant energy resource. It will be capable of hydrogen production and will advance carbon dioxide capture and storage, providing a clean energy prototype to address carbon dioxide concerns.

Led by managing partner China Huaneng Group, the GreenGen Company will design, develop and operate an integrated gasification combined cycle (IGCC) power plant near Tianjin, southeast of Beijing. A 250-megawatt plant will be built in the initial phase, expanding to 650-megawatts in later phases.

So perhaps not such a bad choice after all. What I really thought would be nice to have in the fund was companies which are developing / manufacturing the emissions scrubbing technologies, more than the power generating companies which might be buying those technologies. I have not scrutinized the fund holdings in any detail. As you said about yourself earlier in the thread, I'm lazy.

[Jim Nickerson]

Re: KOL

I didn't. That company is Huaneng Power, apparently the largest power generator in China. Looks like they are involved in a "clean coal" operation:

So perhaps not such a bad choice after all. What I really thought would be nice to have in the fund was companies which are developing / manufacturing the emissions scrubbing technologies, more than the power generating companies which might be buying those technologies. I have not scrutinized the fund holdings in any detail. As you said about yourself earlier in the thread, I'm lazy.

Thank you, well at some point people are going to have to clean up their acts or just die from pollution--which if it comes to the latter will help the planet. Perhaps it will be industrials as a sector that will capture the development and manufacturing of whatever is needed to make coal not a killer.

[DemonD]

Re: Before Another Bridge Falls- ny times on infrastructure

Jim, macquerie's main investments, as i understand it, is that they own parking lots near airports. I believe they are expanding into toll road type deals.

[GRG55]

Re: KOL

I didn't. That company is Huaneng Power, apparently the largest power generator in China. Looks like they are involved in a "clean coal" operation:

So perhaps not such a bad choice after all. What I really thought would be nice to have in the fund was companies which are developing / manufacturing the emissions scrubbing technologies, more than the power generating companies which might be buying those technologies. I have not scrutinized the fund holdings in any detail. As you said about yourself earlier in the thread, I'm lazy.

Well I will confess to laziness also, so I have not checked this out for this particular instance - just a point out that it is not that uncommon in many parts of the world for the power generation companies to be large holders of coal reserves. I own one power company with assets in Canada, the USA and France that has a large undeveloped coal reserve attached to one of their generating assets.