Roads & Transportation

Tesla could hit second gear with Shanghai factory

22 Oct 2017

Elon Musk may soon be able to build his electric cars in China. That's essential for catching up or keeping pace with rivals in the fast-growing market. It'll also take pressure off production trouble in the United States. A troubling tariff problem, however, is apt to remain.

Lyft’s new $1 bln of cash spells gains over Uber

19 Oct 2017

The ride-hailing app has secured new funding led by Alphabet and a nearly 50 pct valuation increase. Its larger rival is struggling to regain momentum and is close to a down-round investment from SoftBank. Uber has the scale, but Lyft’s less aggressive approach is paying off.

Spanish toll-road bid steamrollers Benettons

18 Oct 2017

ACS has made a 17 billion euro offer for infrastructure operator Abertis, using the balance sheet of its German unit Hochtief. The price is better than a rival bid from Atlantia, controlled by Italy’s Benetton family. It owes more to cheap debt than economic sense.

Ford’s clever electric van plan in China

4 Oct 2017

The U.S. carmaker is changing course in China, insiders told Reuters, as sales slow. New state policies open an opportunity for Ford to build electric commercial vehicles. That could help meet quotas - and electrify Ford SUVs. Much depends on the partner, and battery supply.

China “Belt and Road” waves red flag for investors

18 Sep 2017

Beijing’s vision of infrastructure connecting some 70 countries already has fund firms rushing to create vehicles to lure investment. But broad index ETFs miss that many projects make little commercial sense. Skeptical punters should focus on a narrower set of potential winners.

China’s latest logistics IPO is hard to unpack

27 Jun 2017

Alibaba-backed Best Inc could raise $1 bln in New York, a few months after a rival's disappointing debut. The loss-making group is faster-growing and more diverse. But the extra complexity could make this a hard sell for already-wary investors.

Qatar’s American Airlines ticket not just politics

22 Jun 2017

Buying a stake in the carrier has all the hallmarks of a politically motivated deal. Flexing its financial muscles in the United States sends a defiant message to its enemies circling in the Gulf. But American Airlines also offers commercial value on top of diplomatic leverage.

Nationalism may derail Bombardier deal logic

11 Apr 2017

Combining the Canadian firm’s rail unit with Siemens’ - and perhaps Alstom’s - would help them compete with a Chinese rival. Past merger talks have failed, though, and growing government involvement in Bombardier signals the difficulty in keeping these discussions on track.

Truckers bulk up against multiple roadblocks

10 Apr 2017

Knight’s $6 bln merger with larger, less efficient Swift creates a sizable player in an industry full of owner-operators. The new company will have more heft to deal with threats like automation. And the reduced power of Swift’s founder hints at a more professional operation.

Daimler’s European answer to Uber gains momentum

26 Jul 2016

The German carmaker is merging its ride-hailing app Mytaxi with UK-based rival Hailo. The all-share deal creates Europe’s strongest competitor to Uber while avoiding paying the sector’s frothy multiples. For now, Daimler’s digital first-mover advantage is paying off.

Singapore metro buyout not as stingy as it looks

21 Jul 2016

State investor Temasek is offering $870 mln for the remaining 46 pct of local rail operator SMRT. The 9 pct premium looks low for a deal that needs high levels of minority shareholder approval. Factor in the recent overhaul of SMRT's business, though, and it seems much better.

Uber receives ultimate disruptor stamp of approval

1 Jun 2016

The taxi-hailing app has snared a $3.5 bln investment from Saudi Arabia’s Public Investment Fund. It’s not just a hedge against the kingdom’s oil dependency. It also confirms Uber as one of the probable central players in the shift to electric, autonomous vehicles.

Toyota, VW jump on cartech desperation bandwagon

24 May 2016

The Japanese automaker’s deal with Uber and its German rival’s with Gett come after GM invested in Lyft and Fiat Chrysler hooked up with Google. Each can learn from the other, but the technologists see opportunity while the manufacturers have more to fear about their fate.

Uber’s deal with U.S. drivers looks cheap

10 May 2016

Treated as employees rather than contractors, the ride-hailing service might have had to pay them as much as $730 mln more, according to court papers. That makes a $100 mln two-state settlement look like peanuts – another reason why the judge on the case might reject it.

Pooling data is best weapon for Uber’s rivals

12 Apr 2016

Car-hailing services in the United States and Asia are linking apps. The financial benefits from allowing customers to roam overseas are likely to be small. But sharing data and tech insights could help the quartet fight back harder against Uber in their respective home markets.

Rail mega-deal pushed all the wrong buttons

11 Apr 2016

Canadian Pacific’s unsolicited $28 bln offer for rival Norfolk Southern managed to alienate nearly every ally it needed: U.S. regulators, the target’s board, customers, lawmakers and even the American military. The bidder has finally pulled the right lever – eject.

Uber parks itself in a tight legal spot

1 Apr 2016

The ride-hailing service valued at some $63 bln claims its drivers are independent workers not owed benefits. If that’s true, setting the rates they charge might be illegal price fixing, a judge has ruled. The law may need some disruption before Uber can steer clear of court.

Online boom carries windfall to Chinese couriers

23 Mar 2016

Alibaba-backed delivery company YTO has unveiled a $2.7 bln backdoor listing in Shanghai. China’s e-commerce boom means demand for logistics has soared. Though higher wage costs are squeezing margins, growth will continue. Besides, the valuation doesn’t look excessive.

Rail strike is one of a thousand cuts for Wall St

11 Mar 2016

New Jersey transit workers may walk out on Sunday, disrupting travel into New York City. Delays could cost financial firms $2 mln an hour in lost productivity. The unions haven’t had a contract since 2011. For once it’s not regulation, but banks can still blame officialdom.

Australian infrastructure party is getting crowded

18 Feb 2016

The $6 bln-plus bid battle for port and rail operator Asciano has become heated, drawing in backers from Canada, China and Qatar. No wonder: borrowing is cheap and demand for infrastructure investments outstrips supply. This bodes well for future Australian state sell-offs.