U.S. Transportation will continue its trend towards growth in 2015, according to a new Fitch Ratings report. All sectors are expected to maintain sufficient pricing power and volume and ensuing inflation rate increases at a minimum.
'All transportation sectors are expected to see a continued, moderately accelerating pace of growth through 2015, building on the improved 2014 growth rates. Some tapering is expected in the first few months of 2015 attributable to winter weather-related losses, particularly in the Northeast and Midwest,' said Tanya Langman, Director.
Airport passenger traffic growth of about 2.5%-3% is expected, based on general economic improvement, lower fuel prices and rising seating capacity at most U.S.-based carriers. Performance is expected to vary, with airports serving major markets and international gateways expected to be the best performers.
Fitch expects West Coast port throughput results to show meaningful declines in first-quarter due to the labor slowdown, while East Coast ports may see increases from diversions. Following labor dispute resolution, Fitch will monitor longer term shifts in discretionary cargo as shippers react, and East Coast and West Coast ports court shippers for market share.
Sluggish growth is expected on large toll roads networks in early 2015, reflecting a high concentration of large networks in the weather-affected areas of the Northeast and Midwest. Following the bad winter months, Fitch expects 2015 to revert back to the steady growth trend set in the last 12 months.
