We follow interesting trends in investment activity of infrastructure assets such as power plants, water treatment facilities, waste management assets, airports, toll roads, renewable energy assets, and other infrastructure projects.

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German Infrastructure is in Shaky Shape

German Infrastructure is in Shaky Shape

German Infrastructure is in Shaky Shape

The German infrastructure isn’t in great shape.

In surprising news, Germany’s infrastructure is crumbling and a country with an almost flawless reputation for efficiency is consequently seeing its image tarnished.

According to a CNBC, constant construction and traffic jams are painting a clear picture: Germany’s country roads, bridges, rgerman infrastructure roadailways, and waterways all need significant repairs.

Ernst Grigat, a local who runs several industrial complexes in Germany and was quoted by CNBC, paints a grim picture in regards to the German infrastructure:

“When you see steel breaking, the steel ripping apart, then you get an idea of what it means to have an old bridge in desperate need of repair.”

In 2006, Germany ranked third globally in overall quality of its transport infrastructure. Today, that ranking has slipped all the way to 11th.

Clearly something is going in the wrong direction. So much so that in August, Germany’s Federal Ministry of Transport and Digital Infrastructure created a plan to spend roughly $300 billion on reconstructing and modernizing the German infrastructure over the next 15 years.

Here in the United States, the German infrastructure issue is important in the sense that it’s eerily similar to our own problems. Interstate roads and national highways are in good shape, but local and rural roadways often suffer neglect.

Why does that happen? In Germany, the issue can partially be blamed on the lack of government coordination.

Germany similarly lacks coordination between federal and local governments when it comes to funding projects. A study by development bank KfW found German municipalities needed nearly $40 billion in road and transport infrastructure last year. Only 1 in 20 municipalities was able to ensure comprehensive maintenance of local transport infrastructure, according to the report.

Part of the problem with the German infrastructure is money is needed in so many places, therefore it’s difficult to direct funds to the right area.

Germany has recognized its problem and is taking steps to fix it, however, is it too late to salvage its reputation?

We’ll soon find out.

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