Kasia Nikhamina and her husband Ilya outside their shop Red Beard Bikes in Brooklyn, New York. Image courtesy Sam Polcer
Kasia Nikhamina and her husband Ilya outside their shop Red Beard Bikes in Brooklyn, New York. Image courtesy Sam Polcer
Kasia Nikhamina and her husband Ilya outside their shop Red Beard Bikes in Brooklyn, New York. Image courtesy Sam Polcer
Kasia Nikhamina and her husband Ilya outside their shop Red Beard Bikes in Brooklyn, New York. Image courtesy Sam Polcer

Cycling in New York moves from the edges to mainstream


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NEW YORK // When Kasia Nikhamina began commuting between Queens and Manhattan on her bicycle 11 years ago, it seemed to her like all of New York City’s notoriously short-tempered motorists were outraged to see a rare cyclist daring to share the roads with them.

“Back then it was pretty scary, drivers would yell at me,” said Ms Nikhamina, 30, an avid cyclist and the owner of Red Beard Bikes, which builds custom-made bicycles and sells bikes and gear for beginners.

“Once someone spat at me out of their window. People would curse and yell, ‘get on the pavement!’ Do I look like a threat? No, I was just on a bike.”

Fortunately for Ms Nikhamina – and the tens of thousands of other New Yorkers who now cycle to work or for pleasure – much of America’s largest city has been transformed over the past decade.

Today, it is a model for how to successfully integrate cyclists and decrease demand on taxis and overburdened public transport. The focus in the past 10 years has been to reduce accidents and increase profits for businesses through new infrastructure.

“I used to commute to school [on bicycle from Brooklyn to Manhattan] in 2001 and I’d usually be the only person on the Brooklyn Bridge,” said Ilya Nikhamin, Ms Nikhamina’s husband, also 30. “Now if you go during rush hour there’s bike traffic, there’s a long line to get to the bridge.”

Many of the changes that have allowed for the increasing use of cycles were controversial and unpopular at their inception, but now seem like they have always been part of the city’s landscape.

The nearly 650 kilometres of bike lanes across Manhattan and parts of Brooklyn may have been the product of former New York mayor Michael Bloomberg and his crusading transportation commissioner, but without advocates like the Nikhamins, the political pressure that paved the way for changes would have been unlikely.

Last week, under the shadow of the Manhattan Bridge in Brooklyn, the couple sat in a hip cafe a few storefronts from Red Beard Bikes, discussing how the city’s infrastructure has brought change to its cycling culture.

In 2007, Ms Nikhamina joined a volunteer committee in Brooklyn with Transportation Alternatives, the largest bike advocacy group in New York. The group, and others like it, assessed what could be done at key locations to facilitate commuting by bicycle, and sent the recommendations to the city’s department of transportation.

At that time, this type of grassroots advocacy for cycling was just gaining momentum, but the ferment showed city officials there was a demand for such changes. It also emboldened the newly appointed transportation commissioner, Janette Sadik-Khan, herself a bike advocate, who began experimenting on a small scale with temporary infrastructure changes such as car-free pedestrian and cycling zones, and protected cycle lanes.

That process led to the roll-out in 2008 of a plan by then mayor Mr Bloomberg to transform the city’s streets. Cars and lorries were no longer the primary focus. Pedestrians and bicyclists were to be given equal billing.

Residents in some areas protested at the changes, but the stark results silenced them. Injuries and fatalities dropped for both bicyclists and pedestrians, while more people chose cycling – a fast and less expensive means of transport, and businesses benefited from the extra non-car traffic.

"Fundamentally, we flip the transportation hierarchy on its head. Instead of cars being at the top, it's people at the top," Ms Sadik-Khan told Bicycling Magazine last month when discussing the changes she put in place. "That's a very different lens to look at transportation through."

Between 2007 and 2014, the number of daily bicycle commuters in New York jumped from just over 26,000 to around 40,000, thousands more using a mix of cycles and public transport. The current mayor aims to have 6 per cent of New Yorkers commuting on bicycles by 2020, compared with just 1.2 per cent currently.

“We showed that streets that are safer are better for businesses, and when you have those kinds of numbers, it’s a very different conversation,” Ms Sadik-Khan said. Now, eight years later, “a lot of our work is kind of the status quo”, she said.

The launch of the CitiBike programme in May 2013 also contributed to the New York’s bicycle revolution. Citigroup funded a bike-share programme with 6,000 cycles available at docking stations around Manhattan and Brooklyn. Before the launch, there were many naysayers but since then, CitiBikes have become ubiquitous, with everyone from tourists to high schoolers to bankers in suits riding the blue bikes around the city.

CitiBike has plans to expand the programme farther into Brooklyn and also to Queens, doubling the number of bikes available by the end of 2017. As of December 8 last year, the programme had clocked up nearly 25 million rides, and 158,000 annual members in addition to the thousands of casual riders, according to city data.

Despite these changes, there are still roadblocks for cycling proponents to overcome. Even with the average risk of serious injury or death falling 75 per cent by 2013, according to the transportation department, some say the police are not strict about enforcing traffic laws when it comes to accidents between cycles and cars. And although the speed limit has been lowered to 40 kph from about 50 kph, riders say police often side with drivers and treat cyclists with disdain.

In October, a photo posted on Twitter of police officers painting over bike lanes so that cars could illegally park in them sparked outrage among riders.

Still, Mr Nikhamin is hopeful that that cyclists will soon be accepted as a normal feature of New York’s streets.

“CitiBike riders will teach the city how to respond to bikes and the infrastructure will follow the use, and as the infrastructure grows the use will grow and it’s going to be a constant cycle,” he said, sipping his coffee which he bartered for bike services with the cafe’s employees.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”