The 2015 report on road construction in Poland, including forecasts until 2020, starts a new series of PMR publications concerning the construction market. A combination of user-friendly statistics accompanied by in-depth expert analyses of both the market and its major players is the key distinguishing feature of the series. All reports also draw on the expertise and extensive knowledge contained in the PMR Investments database of investment projects.
The report on the road construction market consists of four chapters, each devoted to a detailed discussion of the following topics:
- industry statistics
- major companies operating in the market: investors, designers, contractors
- an analysis of contract prices and price trends
- road projects planned, underway and on hold.
Key report topics
- A comprehensive analysis of statistical data describing the sector and the list of key factors driving changes in the sector
- Forecasts for construction output and the length of new roads (in km) until 2020
- An analysis of key investors, designers and contractors in the road construction market
- An analysis of contracts concluded in recent months and computation of prices (per km) for various types of road projects
- An analysis of key projects (both underway and planned for the coming years).
What is the added value of the report for the custom
- A comprehensive statistical analysis of the road sector
- Data on the value of the market and the market growth rate as well as the outlook for the next five years
- An analysis of the competitive environment
- An analysis of contract prices observed in the marketplace
- An analysis of bidders submitting bids in calls for tenders
- The list of major investment projects planned by investor type (GDDKiA, ZDW, local authorities).
Questions this report answers
- What is the current value of the road construction market?
- What are the market development prospects for the next five years?
- What is the structure of the market (new roads vs. renovation projects)?
- Which contractors hold the largest market shares?
- What are the main reasons why road projects fail?
- What prices (per km of expressway) were stated in contracts concluded in 2014?
- What prices (per km of local road) were stated in contracts concluded in 2014?
- Which companies secured the largest numbers of road contracts in 2014?
- Which designing companies are currently the leading players in the road market?
- Which contractors follow the most aggressive pricing policies?
- Which international contractors launched operations in Poland in 2014?
- When the ongoing road projects are expected to peak?
- Is the road construction sector likely to once again see a sharp rise in the prices of bitumen and aggregates?
- What steps should investors, designers and contractors take in order to avoid problems faced by the road construction sector?
- What are the major projects planned by GDDKiA for the coming years?
- What are the major projects planned by the 16 divisions of the Regional Road Administration Authorities (ZDW) for the coming years?
- What are the major projects planned by the key Polish urban agglomerations for the coming years?
- What does the future hold for the National Programme for Rebuilding of Local Roads?
What is the distinctive feature of the report
PMR has published multiple reports on road construction. However, when compared to the previous editions of the report, the latest study takes a significantly different approach. The present report has been prepared on the basis of an extensive database of construction projects analysed and monitored by PMR experts working as part of the PMR Investments team.
The report's authors have also taken care to make the report stand out from other studies available in the market. To this end, they have implemented a diverse range of measures including:
- presentation of statistical data supported by expert commentaries
- presentation of market trends
- identification of growth forecasts
- review of actions of major market players
- explanation of price trends reflected in the concluded contracts
- discussion of planned and ongoing road projects.
What are the most interesting developments in the road construction market in Poland
- The years 2013-2014 were marked by a substantial number of road tenders, so the construction work is expected to be stepped up in 2015-2017.
- The availability of funds from the EU budget for 2014-2020 will be the crucial factor.
- New foreign investors continue to pour into the market, and, consequently, competition gets more intense.
- Given the investment acceleration, the prices of building materials, in particular aggregates and bitumen, remain uncertain. There are concerns that they can likely accelerate, as was the case before Euro 2012.
- Contractors' financial situation steadily improves; the companies are less likely to compete on price. Therefore, a wave of bankruptcies among road construction companies can be avoided.
Did you know that
- We expect road construction and assembly output to grow by 10% in 2015.
- Around 90 construction companies responded to large-scale calls for tenders issued by GDDKiA in 2014.
- As at the beginning of 2015, tender procedures for approximately 900 km of high-speed roads were underway. All of the sections are expected to move to the construction phase by the end of 2015.
- Plant and equipment and conveyance systems is the second largest cost component for road construction companies (a share of over 15%), most of it being the costs of fuel.
- Producers of aggregates, which are used to build roads, recorded a 9-percent increase in output to 240 million tonnes in 2014.
- In a long-term horizon, the most bullish outlook is for road construction in the eastern regions of Poland (Podlaskie, Lubelskie and Podkarpackie) and the Zachodniopomorskie voivodship.
Some companies mentioned in the report
Aldesa, Arcadis, Astaldi, Berger Bau, Bilfinger, Budimex, Bunte, Dragados, Energopol Szczecin, Erbedim, Eurovia, Ferrovial Agroman, Gotowski, Heilit+Woerner, Intercor, Jacobs Polska, Kobylarnia, Lafrentz, Max Boegl, Mirbud, Mosty Katowice, Mosty-lódz, Mota-Engil, OHL, PBDiM, Polaqua, Pont-Projekt, PORR, Pracownia Projektowa Dróg i Mostów, Przedsiebiorstwo Budowy Dróg i Mostów, Rubau, Salini, Sener, Skanska, Strabag, Tebodin, Todini, Trakt, Transprojekt Gdański, Transprojekt, Warszawa, Vianini Lavori, Warbud, WBP Zabrze.
When will the report be most useful
- Monitoring the general market situation
- Preparing market forecasts for the next five years
- Identifying leading designers operating in the marketplace
- Identifying leading contractors operating in the marketplace
- Examining the operations of the reader's company in the context of its competitors
- Entering the road construction market in Poland
- Trying to identify potential targets for acquisition or cooperation
- Determining trends and assessing factors that affect the market
- An analysis of prospects for the leading contractors.
Extract from this report
- In our opinion, the most likely scenario is that many projects will be postponed until 2021-2022 which will have the effect in significantly flattening the factor of length of roads (in km) under construction. We believe that this scenario would be more advantageous to the road construction industry.
- Since both the scope and value of orders put out by GDDKiA were lower, many Polish-owned companies took part in tenders - previously, they were able to act as subcontractors or consortium members only. Mirbud and Erbedim are examples of such companies as they managed to secure two major contracts.
Market commentary by export
“After a period of slowdown, the road construction sector is preparing itself to take another investment leap, which will involve the construction of over 1,000 km of new fast roads. The sector will benefit from the new programming of EU funds as over PLN 40bn of the funding will be allocated to road projects in 2014-2020. As a result, the road industry can again grow at the double-digit rate in 2015-2017. However, the 2011 output figure is unlikely to be repeated.” Katarzyna Bednarz, Construction Market Analyst.
Table of Contents
- 1. The definition of the sector
- 2. Sources of data used in the report
- 3. Forecasting methodology
II. Executive summary
- 1. The outlook for the market
- 2. Main companies operating in the market
- 3. Price trends
- 4. Overview of projects
III. The outlook for the market
- 1. Forecasts for 2015-2020
- 2. Regional view of the sector
- 3. Other statistics relating to the sector
IV. Main companies operating in the market
- 1. Investors
- 1. Key trends
- 2. Company profiles
- 2. Designers
- 1. Key trends
- 2. Company profiles
- 3. Contractors
- 1. Key trends
- 2. Company profiles
V. Price trends
- 1. Lowest-end unit contract prices
- 2. Average unit contract prices
- 3. Top-end unit contract prices
VI. Overview of projects
- 1. Projects underway
- 2. Projects in planning
- 3. Projects on hold
VII. List of graphs
VIII. List of tables
IX. Note about PMR