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Japan Infrastructure Report Q3 2011

Japan Infrastructure Report Q3 2011

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Additional Information

Price	$530.00
Publisher	Business Monitor International
Date of Report	Jun 17, 2011

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Quick Overview

BMI View: Reconstruction efforts in the aftermath of the March 2011 earthquake and tsunami will propel Japan’s infrastructure and construction industry activity, following nearly two decades of stagnation and recession. We have revised up our forecasts for infrastructure and non-residential and residential construction industry value in Japan. However, we question – highlighting concerns that lend downside risk to our forecasts – how the Japanese government will fund the reconstruction, and ask, what are the implications for long-term public spending on infrastructure?
The implications of the March 2011 earthquake and tsunami, and subsequent Fukushima nuclear accident, are wide ranging and will impact the entire infrastructure industry in a plethora of ways:
?? The government revised the national energy strategy in May 2011 to downscale the role nuclear power will play in the energy mix. Instead, it will increase the focus on natural gas in the medium term and renewables in the long term. This will lead to major revisions in the capex plans of major utilities like Tokyo Electric Power Co (TEPCO) and Chubu, which have investment plans and expertise that are geared towards nuclear power.
?? The Fukushima accident is prompting many Japanese companies to return to the domestic infrastructure market. In recent years many of these companies have sought to export construction and engineering expertise abroad, in search of higher growth rates, particularly in emerging markets. Several companies have been withdrawing from international tenders to focus their resources on reconstruction in Japan.
?? Japan’s nuclear expertise was a crucial export sector, with the Japanese utilities and nuclear technology providers actively seeking new contracts across the globe. The creation of the International Nuclear Energy Development of Japan in 2010 highlighted the long-term shift to overseas markets. It now remains to be seen what the impact of the Fukushima accident will have on on the wider perceptions of Japanese nuclear technology. Domestically, with the public’s mistrust of nuclear power politicising the nuclear debate, we anticipate that the Japanese nuclear sector will experience sluggish activity in the coming years, certainly at home (with the new energy strategy) and most likely overseas.
?? We have revised up our growth forecasts for 2011, 2012 and 2013 for infrastructure and residential and non-residential construction. Overall the estimated cost of reconstruction is close to US$300bn, the largest ever reconstruction cost in the aftermath of a natural disaster.

Table of Contents

Executive Summary ........................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 6
Japan Infrastructure Industry SWOT .................................................................................................................................................................... 6
Market Overview .............................................................................................................................................. 7
Japan ......................................................................................................................................................................................................................... 7
Table: Value Of Construction Orders Received, 100mn yen ................................................................................................................................. 8
Building Materials ......................................................................................................................................... 12
Global Overview ...................................................................................................................................................................................................... 12
Asia To Accelerate In 2011 ................................................................................................................................................................................ 12
World's Top Steel Producing Countries (million metric tonnes – mmt) ............................................................................................................... 17
Asia Overview .......................................................................................................................................................................................................... 18
Industry Forecast Scenario ........................................................................................................................... 22
Table: Japan Construction And Infrastructure Industry Data ............................................................................................................................. 22
Table: Japan Construction And Infrastructure Industry Data ............................................................................................................................. 24
Construction And Infrastructure Forecast Scenario ................................................................................................................................................ 26
Transport Infrastructure ............................................................................................................................... 28
Table: Japan Transport Infrastructure Industry Data ........................................................................................................................................ 28
Table: Japan Transport Infrastructure Industry Data ........................................................................................................................................ 28
Transport Infrastructure Forecast Scenario ............................................................................................................................................................ 29
Transport Infrastructure Overview .......................................................................................................................................................................... 29
Major Projects Table – Transport ...................................................................................................................................................................... 31
Table: Major Infrastructure Projects – Transport .............................................................................................................................................. 31
Energy And Utilities Infrastructure ............................................................................................................... 32
Table: Japan Energy and Utilities Infrastructure Industry Data ......................................................................................................................... 32
Table: Japan Energy and Utilities Infrastructure Industry Data ......................................................................................................................... 32
Energy And Utilities Infrastructure Forecast Scenario ............................................................................................................................................ 33
Energy And Utilities Infrastructure Overview .......................................................................................................................................................... 34
Major Projects Table – Energy And Utilities ...................................................................................................................................................... 36
Table: Major Infrastructure Projects – Energy & Utilities ................................................................................................................................. 36
Residential/Non-Residential Construction and Social Infrastructure ...................................................... 38
Table: Japan Residential and Non-Residential Building Industry Data ............................................................................................................... 38
Table: Japan Residential and Non-residential Building Industry Data................................................................................................................ 38
Residential/Non-Residential Construction Forecast Scenario ................................................................................................................................. 39
Residential/Non-Residential Construction and Social Infrastructure Overview........................................................................................................ 40
Business Environment ................................................................................................................................. 42
Japan Business Environment ................................................................................................................................................................................... 42
Rewards .............................................................................................................................................................................................................. 42
Risks ................................................................................................................................................................................................................... 42
Regional Overview ................................................................................................................................................................................................... 43
Developed States Infrastructure Business Environment Ratings .......................................................................................................................... 43
Table: Global Infrastructure Business Environment Ratings ............................................................................................................................... 44
Company Monitor .......................................................................................................................................... 48
Kajima Corporation ............................................................................................................................................................................................ 48
J-Power .............................................................................................................................................................................................................. 51
Tokyo Electric Power Company Co. (TEPCO) ................................................................................................................................................... 54
Taisei Corporation .............................................................................................................................................................................................. 56
Global Overview ............................................................................................................................................ 58
Methodology .................................................................................................................................................. 63
Industry Forecasts ................................................................................................................................................................................................... 63
Construction Industry ......................................................................................................................................................................................... 64
Data Methodology .............................................................................................................................................................................................. 64
New Infrastructure Data Sub-sectors .................................................................................................................................................................. 64
Construction ....................................................................................................................................................................................................... 65
Capital Investment .............................................................................................................................................................................................. 66
Construction Sector Employment ........................................................................................................................................................................ 67
Infrastructure Business Environment Rating ........................................................................................................................................................... 68
Table: Infrastructure Business Environment Indicators ..................................................................................................................................... 69