Strategic Infrastructure

The report argues that optimizing the operations and maintenance (O&M) of the existing US$ 50 trillion global infrastructure stock is a cost-effective way to address the US$ 1 trillion annual infrastructure investment gap. It proposes a framework divided into implementation strategies—increasing utility, decreasing total cost, and increasing lifetime value—and enablement strategies, which include ensuring funding, building capabilities, and reforming governance. The document details specific levers such as demand management, predictive maintenance, and the corporatization of public agencies, illustrated by over 200 examples and a detailed case study of the Panama Canal Authority.

• There is a significant global infrastructure investment gap estimated at approximately US$ 1 trillion per year, with annual demand at US$ 3.7 trillion and actual investment at US$ 2.7 trillion.
• The global stock of existing infrastructure is valued at approximately US$ 50 trillion, presenting a major opportunity to reduce the infrastructure gap through optimized operations and maintenance (O&M).
• Asset utilization can be maximized through three primary strategies: enhancing peak capacity and effective throughput, applying demand management to shift peak demand, and optimizing availability by reducing downtime.
• Demand-side measures, such as time-based user charges, are effective tools for redistributing infrastructure usage in time, space, or mode to alleviate congestion.
• Operational costs can be reduced by implementing lean principles to eliminate waste, leveraging automation (such as remote sensing and autonomous operations), and optimizing procurement through total-cost-of-ownership analysis.
• Infrastructure operators can mitigate environmental and social externalities by adopting 'Reduce, Recycle, Replace' strategies and embedding sustainability into routine operations as a top-management responsibility.
• Asset life can be extended by investing in preventive and predictive maintenance, controlling excessive asset stress, and enhancing resilience against natural disasters, which are increasing in frequency and severity due to climate change.
• Reinvestment in ageing assets should be guided by a whole life-cycle cost-benefit analysis (CBA) to identify the most cost-effective option among demand management, throughput optimization, targeted investment, rehabilitation, or reconstruction.
• Sustainable O&M funding requires moving away from volatile annual government appropriations toward dedicated maintenance funds, user charges, and the capture of ancillary business revenues.
• Building O&M capabilities requires a three-tiered approach: institutional asset management planning at the national level, agency-specific data and tools, and individual talent development through specialized training.
• Corporatization of public agencies can improve O&M by providing managerial autonomy, professional leadership, and a commercial orientation while maintaining public accountability.
• The Panama Canal Authority (ACP) serves as a model for holistic O&M, utilizing a mix of price-based and rule-based demand management, a corporatized governance structure, and a strong focus on life-cycle procurement.

APA

World Economic Forum (2014). Strategic Infrastructure. http://www3.weforum.org/docs/WEF_IU_StrategicInfrastructureSteps_Report_2014.pdf

Chicago

World Economic Forum. Strategic Infrastructure. 2014. http://www3.weforum.org/docs/WEF_IU_StrategicInfrastructureSteps_Report_2014.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Strategic Infrastructure |date=April 2014 |url=http://www3.weforum.org/docs/WEF_IU_StrategicInfrastructureSteps_Report_2014.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2014strategic, author = {{World Economic Forum}}, title = {{Strategic Infrastructure}}, institution = {World Economic Forum}, year = {2014}, month = apr, url = {http://www3.weforum.org/docs/WEF_IU_StrategicInfrastructureSteps_Report_2014.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }