The mayor still sees a role for normal charging points and said London's network of 10,000 represented a third of the UK's total number. PA
The mayor still sees a role for normal charging points and said London's network of 10,000 represented a third of the UK's total number. PA
The mayor still sees a role for normal charging points and said London's network of 10,000 represented a third of the UK's total number. PA
The mayor still sees a role for normal charging points and said London's network of 10,000 represented a third of the UK's total number. PA

Future of London transport is smart road charging, says Sadiq Khan


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London Mayor Sadiq Khan on Thursday said he believed the future of transport in the capital lies in smart road user charging and that good progress was being towards this aim.

Mr Khan first set out plans for an "electric revolution" in the capital in 2019 when he called for a massive expansion of its electric charging network.

"[Today] we have more rapid charging points than any city in western Europe," he told delegates at the Bloomberg Sustainable Business event as he described improving air quality in London a matter of "social justice".

"We're approaching 500 now and you can get an app and see where the rapid charging points are," he said.

Convenience is frequently cited as one of the major barriers to faster electric vehicle take-up and rapid chargers reduce the time it takes to power an EV from about 12 hours to 10 to 15 minutes.

The mayor still sees a role for normal charging points and said London's network of 10,000 represented a third of the UK's total number.

However, he acknowledged that coverage was still patchy.

"We've noticed that if you do a sort of bird's eye view of London, not all of London is well covered," he said.

"Outside London is not as well covered as central London. There are some corridors that are more [covered] than others. So we're trying to improve that."

Mr Khan revealed he had instituted an EV infrastructure task force and was working with utility companies "to make sure we have all of London covered but also making sure that the energy used is renewable".

Just as important as sustainability at the point of supply is cleanliness at the point of use, he suggested.

Short-term inconvenience a price worth paying for cleaner air

This is the guiding principle behind London's much criticised no-car zones, which some Londoners believe have made day-to-day transport around the city much more inconvenient.

Mr Khan was in no mood to indulge their concerns.

"It's an issue of social justice actually," he said.

"It may be inconvenient that you are unable to take the rat run [process of motorists using residential side streets to get to a destination] you used to take.

"But for those residents on those roads it is a huge convenience because their children are less likely to suffer from asthma or bronchitis or all sorts of health issues."

Mr Khan acknowledged that adapting could be inconvenient in the short term but highlighted the cycling scheme in the London borough of Waltham Forest, which initially faced stiff opposition from parents on the school run.

"Now those same parents are walking, cycling, scootering with their kids to school ... improving air quality," he said.

There is an economic gain, too, with "businesses in those streets benefiting from the high footfall".

Not a flash in the pan

Mr Khan recounted the damage caused to Londoners' homes by flash flooding to reinforce to delegates the adverse effects of climate change on the capital.

"We saw lots of flash floods in the city because of the hard surface and so forth," he said.

"With stations closing down, we had basements being flooded and we had Londoners' lives being disrupted."

Taking a silver lining from the cloud, Mr Khan said it made the issue of rising sea and river levels a "now issue".

Londoners have been badly hit by flash flooding in recent months.
Londoners have been badly hit by flash flooding in recent months.

He said no action were taken, in the next 10 years a quarter of London's underground stations, hundreds of thousands of homes and many hospitals and schools would be flooded, often in poorer areas of the capital.

Action is being taken, though.

"We're working with the water companies, working with local authorities, we've now got more sustainable urban drainage," said Mr Khan.

"We're trying to turn concrete jungles green."

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.”

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Updated: March 31, 2022, 1:32 PM