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INSIGHT The global infrastructure magazine | Issue No. 11 | 2018 Connectivity of Connected Interplanetary the future: economies: connectivity A new lens on The dark web Building a infrastructure challenges a life — and The most ‘new dawn’ for infrastructure — connected infrastructure on Mars. powers, and New pressures Page 32 people, will win. on infrastructure Page 6 stakeholders. Page 10 #InfraConnect Connect to compete About this issue Richard Threlfall Stephen Beatty Julian Vella Global Head of Infrastructure Chairman (Non-Executive), Head of Asia Pacific KPMG International Global Infrastructure Infrastructure Practice E: [email protected] KPMG International KPMG International @rthrelfall_kpmg E: [email protected] E: [email protected] @stephencbeatty @jp_vella © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. n today’s world, those with the greatest is massive trade deals like the Trans-Pacific developers and operators to continuously connectivity reap the greatest rewards. Partnership, collaborative investment innovate and adopt new technologies. It IIt is true for people, cities, countries vehicles like the Asia Infrastructure requires investors to rethink the value and infrastructure. Investment Bank or even bilateral tie-ups equation when assessing their return like those currently blooming in ASPAC, it on investment. But, first, it will require a People are simply begging for more is clear that most countries are seeking deeper understanding of what connectivity connectivity. The evidence is everywhere: more global connectivity, not less. really means to people, cities, countries it is in the continued adoption of social and infrastructure. media; the recent boom in air travel; and the Infrastructure — arguably the foundation uptake of 4G networks and technologies. It of all previous connectivity — is also That is why, for this edition of Insight is palpable — from the throngs that crowd becoming much more connected and Magazine, we have approached the concept the small internet shops in the shanty towns much more focused on connectivity. At of ‘connectivity’ from multiple angles. We of Rio and Lagos through to the mobile the asset level, we are seeing massive explore the challenges of delivering regional smartphone addicts on the main streets efforts to create more ‘connected connectivity projects; the efforts to connect of Hong Kong and New York, everyone is enterprises’ that are able to leverage NGOs and multilateral institutions to trying to connect to something. data and automation to drive significant infrastructure investment needs; protecting performance enhancements. At the system cities and interconnected infrastructure Cities, too, are desperate to improve their level, we are seeing continued moves to assets from cybercriminals on the dark connectivity. They are building massive new integrate assets and services — whether web; Asia’s massive regional initiatives; airports, encouraging greater competition that is encouraging multiple forms of we even offer a futuristic view of what it in the ICT sectors and participating in electricity generation, creating multimodal might take to connect to a Mars colony. regional rail and energy schemes. transport or preparing for the introduction They are building ‘smarter’ versions of Those seeking a better understanding of of automated vehicles. themselves by connecting their internal the bigger picture of how connectivity and systems, technologies and data to drive Indeed, the value of infrastructure is no infrastructure align will want to read our massive efficiency at city-scale. And they longer counted in the revenues it generates, interview with Parag Khanna on page 6. are promoting these advancements to but rather in the connectivity that it enables. Indeed, Parag sums up the current situation investors and potential employees around The challenge for the infrastructure sector nicely when he notes, “Beneath the chaos the world. is that delivering connectivity is not the of a world that appears to be falling apart same as delivering assets. is a new foundation pulling it together. While recent media coverage may suggest And that is our collective connectivity.” that some countries are now starting to Delivering connectivity requires ‘disconnect’ in response to protectionist infrastructure planners and owners to This edition of Insight Magazine helps and populist pressures, the reality is that take a step back from their roles to view to explain why. the vast majority of national governments the bigger picture and to understand are working very hard to improve their how their participation leads to greater connectivity with other countries. Whether it connectivity. It requires designers, © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Contents Connectivity of the future 06 A new lens on infrastructure Connectivity is destiny — and the most connected powers, and people, will win Connected economies 10 The dark web challenges a ‘new dawn’ for infrastructure An underworld of anonymity is placing new pressures on infrastructure stakeholders Connected energy 14 06 Super grids: making the right connections for a sustainable future An attractive investment model for governments and private entities Connecting for good 20 At the confluence of development, investment and infrastructure The future of partnerships to bridge the gap in developing worlds Connecting markets 24 Asia and 21st-century opportunities Catapulting into the future but not without challenges Connecting citizens 28 Digital makeovers envision ‘smart’ urban centers Redefining how we interact with the city services we rely on Interplanetary connectivity 32 Building a life — and infrastructure — on Mars What does it take to physically build a colony on the red planet? Cooperation and compromise 36 Building regional connectivity Reinforcing a commitment to improve electricity and transport connectivity 28 Creating urban connectivity 40 Urban planning and inter-government partnerships Building ‘30-minute cities’ within Greater Sydney 32 © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 14 20 10 24 40 36 © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Parag Khanna Managing Partner, FutureMap and Leading Global Strategist, World Traveler and Best-Selling Author @paragkhanna arag Khanna believes that mankind has a new maxim — Connectivity is destiny — and the most connected powers, and people, will win. PHis vision of ‘connectography’ unlocks some of the great challenges of connectivity and provides a hopeful vision for the future. We sat down with Parag Khanna, leading global strategist, best-selling author and one of the World Economic Forum’s Young Global Leaders, to learn more about his vision and its influence on infrastructure. Connectivity of the future: A new lens on infrastructure Connectivity is destiny — and the most connected powers, and people, will win 06 | INSIGHT | #InfraConnect © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. #InfraConnect | INSIGHT | 07 © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Ed: In your opinion, why is connectivity Ed: The debate about the benefits of Then there are places that have been so important today? globalization continues. Is greater without even basic infrastructure and, connectivity good for society? in many cases, digital connectivity can Parag Khanna (PK): I believe there are two help them solve that. Platform solutions, main megatrends shaping the world we PK: Absolutely. And, frankly, it’s an energy-saving utilities, mobile broadband, live in today: urbanization and connectivity. unstoppable force that has been around telemedicine — these are all ways that And, together, they dictate human behavior since the dawn of time. Cobblestones governments can leverage connectivity every bit as much as — maybe even more in Roman roads were the first building to reduce the cost of their infrastructure than — any other force or factor we’ve blocks of connectivity, and we have while still delivering basic government seen previously. been increasing our global connectivity services. And these would be the most ever since. Connectivity really comes down to obvious winners. the enablement of supply chains, both physical and digital, which are now the But I would argue that — particularly conduits of our economies. What we have in today’s political environment — there seen is that — in a very uncoordinated, is far too much talk about who gains and unsynchronized yet simultaneous Connectivity really who loses from connectivity. All evidence decision-making process — billions of comes down to the suggests that, when properly
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