For weeks, I’ve been making the case that infrastructure is going to be the next big gold rush — one potentially worth TRILLIONS of dollars over a decade or more.
But the rest of the world isn’t waiting.
Money is already pouring into infrastructure projects around the globe, and this is shaping up quickly to become a prospective profit bonanza for investors.
You’ve probably heard that China’s central government is undertaking a massive $158 billion building program. This is on top of various local projects. It is already boosting China’s iron ore imports and driving up bulk shipping rates.
But China’s spending plans are just the tip of the iceberg for global infrastructure investing. Some other examples of where big money is being put to work …
MEXICO: Mexico is ready to pour more money into roads, ports, water projects, and oil and gas. And that means annual infrastructure spending in that country could climb as much as 56% to $70 billion.
That’s according to Alonso Quintana, chief executive officer of Empresas (ICA), a Mexico-based construction and engineering company.
ICA is already up 43% this year on expectations of higher construction spending in Mexico. That’s just a taste of what can happen to the right infrastructure companies.
RUSSIA: Russia is planning to float $46 billion in bonds to finance infrastructure projects, according to Sergei Belyakov, Russia’s deputy minister of the economy.
And that’s just a start.
Russia will have to spend $310 billion over the next three years on 48 major infrastructure projects, according to reports in Vedemosti, a Russian-language business daily.
CANADA: According to a recent industry report card, more than half of Canadian municipal roads require big repairs.
The Canadian Infrastructure Report Card reveals that 20.6% of roads were rated as being between “poor” and “very poor,” with an additional 32% rated as “fair.” Replacing these roads will cost Canadians an estimated $91.1 billion.
And it’s not just roads.
Canada’s drinking-water system needs a $25.9 billion overhaul, and its storm water infrastructure needs $15.8 billion in work.
Meanwhile, more than 40% of Canada’s wastewater plants need serious upgrades or repairs — work that will cost upward of $20 billion.
SOUTH AMERICA: Brazil has launched several infrastructure projects during the last two years in connection with the upcoming FIFA World Cup and the Olympic Games. These include a high-speed train connecting Río de Janeiro to São Paulo, the expansion of the Guarulhos International Airport, and the addition of an air-cargo facility.
Peru recently announced 26 public-private partnerships that are expected to be finalized in 2012 and 2013. Ecuador has the Refinería del Pacífico refinery project, the Coca Codo Sinclair hydroelectric project and the planned subway system, Quito Metro. Chile and Colombia have also announced new projects.
SOUTHEAST ASIA: Across Southeast Asia, public works are being expanded by governments needing to counter a slowdown in global demand.
Indonesia, Southeast Asia’s largest economy, says it will boost capital spending by 15% in 2013. And next year’s infrastructure spending in the Philippines will be more than 19% above this year’s allocation.
All told, the Asian Development Bank estimates that Southeast Asia’s 10 countries need at least $60 billion a year to fund infrastructure projects.
AFRICA: The East African Community — an intergovernmental organization that includes Kenya, Uganda, Tanzania, Rwanda and Burundi — hopes to get the European Union’s European Investment Bank to fund $175 million in selected infrastructure projects.
But that’s pretty small potatoes. The big money for African infrastructure comes from China.
China has pledged more than $20 billion in loans over the next three years to fund large-scale infrastructure projects in Africa, with a particular focus on hydropower and railways. In other words, infrastructure that helps China extract Africa’s rich resources more easily.
CHINA … AGAIN! China’s top economic planning agency has signaled that it may approve MORE infrastructure projects beyond the $158 billion it recently announced.
The National Development and Reform Commission said the existing approvals were just part of what’s in the pipeline. The head of the commission’s planning division, Xu Lin, said in press reports that China still has large demand for infrastructure.
Global Infrastructure Attracts New Money
Deep-pocketed investors are starting to warm up to global infrastructure spending. But these funds are so huge, and it takes them so long to turn to new opportunities, nimble investors can get in ahead of them.
For example, Morgan Stanley has an existing $4 billion infrastructure fund, but that’s not enough. So it’s raising capital for a new multi-billion-dollar global infrastructure fund. Morgan Stanley has run afoul of new regulations, so it’s being slowed down even more. Wouldn’t it be nice to get in BEFORE Morgan Stanley buys?
I think we can — with 11 red-hot infrastructure investments I talk about in my new report, “Get Rich Rebuilding America.”
America’s Turn Is Coming
America needs infrastructure spending — badly. But new spending on roads, power lines, water systems and more has been stuck in the swamp that is Washington, D.C., politics for the last few years.
That won’t last forever. As a famous politician said recently, “So far every single person who has bet against America has lost money. Because we always come back.”
That politician was Bill Clinton. He runs a foundation that funds people around the world to build their own futures through jobs and economic opportunity. He might know what he’s talking about.
In fact, we are seeing just the start of new infrastructure spending here in the U.S. — like the $5.2 billion Tappan Zee Bridge project in New York. Construction on that will begin very soon.
New York is a beehive of infrastructure and construction spending. Workers are building nearly two dozen new skyscrapers in New York City, including four towers at the World Trade Center that will be completed between 2013 and 2015. These are must-build projects for New York, which wants to reverse the trend of businesses and people leaving the state.
Now take that spending in New York and extrapolate it across America — to new water infrastructure being built in California … new power lines going up across Texas … new power plants being built in Florida and New England and points in-between.
It’s Your Chance to Get Onboard the Profit Train
The opportunity in front of us is enormous. Yes, there are risks. But I believe the reward far outweighs the risks. You have a chance to get on board now, and build a fortune with the companies that are going to rebuild America.
These infrastructure investments are on the launch pad, and blast-off is coming. You need to sign up for my special report — “Get Rich Rebuilding America” — IMMEDIATELY!
The retail price on this report is $149 … a bargain. And it would be cheap at triple the price. Some of these stocks are small, some big. And they’re ALL packed with enormous potential.
And for a very short time, I am selling this report at a pre-publication price of just $99. That’s more than a THIRD off the regular price.
All the best,