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Our take on AI (American Infrastructure)

Key points

  • Freight rail service metrics are improving but volumes remain soft, driven by retail destocking and weak demand
  • Competitive pressures are mounting on US West Coast and Canadian rail networks, following the CPKC1 merger
  • US water utility privatisations are increasing in frequency and size, to the benefit of earnings growth
  • Recent action by the US Congress has been supportive of energy infrastructure, particularly the need for natural gas as a reliable transition fuel
  • We expect further consolidation within the energy midstream sector, although the OKE-MMP2 mega-merger makes little strategic sense to us

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  •   9 August 2023
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