The Future of transport without stumbling blocks starts in 2008
By Sebas van den Ende
Supplant the deficiencies and the lack of investment in transport infrastructure is a big challenge for the Brazilian government. In fact there is a stumbling block that needs to be solved in order not to decrease the economic growth that Brazil lives. The transport area is so important that the lack of modernization can bring loss in competitiveness. Looking at this way, the importance of PAC – Plano de Aceleração do Crescimento – regarding transport is undeniable, and its investment is of R$ 58 billions, it is undoubtedly the light at the end of the Brazilian’s tunnels and roads. Or safe ports so the production can run off, or if you prefer flights in blue sky. We can say that PAC, along with other initiatives from the government is the entrance for Brazil in the future; competing at the same level; in the country’s development and, of course, improving all Brazilians’ way of living.
Besides PAC some other factors make the transport re-structuring crucial and imperious, as the oil discovery by Petrobrás, which will make the ports efficiency into international infrastructure standards, indispensable. The products export, manufactured or agricultural, needs to have modernized and intergraded systems – rail, road, fluvial and ports – to ensure price and deadline. The natural characteristics as the territorial size, the climate and culture, as the Brazilian people helpfulness are also positive items that are considered by the national and international investors.
This conjuncture made Brazil the most promising country in the transport infrastructure area. This market growth in the next three years should surpass 50% and keep growing and offering continuous modernization. It’s not by chance that European companies such as the Spanish OHL and Acciona acquired their share, becoming concessionaire of Brazilian roads on the South and Southeast of Brazil. To have an idea there is news that OHL will invest 4,2 billions of reais in federal roads. This year, there is a forecast of more auctions, as for the “rodoanel” in São Paulo, and also the privatization of some ports. Moreover, exotic countries unknown by the Brazilian people have been speculating Brazil’s market landscapes. There is the perspective of setting up at least a company in Brazil in 2008. And still, the Asians show interested in taking part on the express train concession auction that the government intends to build between Campinas and São Paulo.
Canada, United Stated, Japan and even China, just in order to mention some countries, are interested in the potential growth of the Brazilian transport market. Well we are talking about billions in investments, which in chain will form the mostly wanted “virtuous circle”. We are talking about growth, profit, expansion, job and progress.
It has been a while people say that Brazil is the country of the future. So, it looks like the future is coming. The country is being prospected as a good place for investments. International corporations believe I Brazil abroad. And, obviously, there are reasons for that. So, it is easy to realize that the effective restructure and the rail, airport, roads and ports modernization is inexorable.
There is much evidence that 2008 will be crucial for this solid structuring consolidation in transport and it should embrace all the territory. Brazil is going to host the biggest transport infrastructure event, that should gather the worldwide intelligence in the sector, exchanging knowledge, technologies, commercial opportunities, partnerships, with the participation of organs involved in the Brazilian government transport modals; private, national and international initiative; the sectors opinion formers and intellectuals; among others.
This way, the increasingly interest of international companies in conquering their share in the transport infrastructure market can be stated. The Brazilian government greets positively, which helps this perspective. The recent privatizations of seven federal road legs (2.600 km) and the perspective of auctions in other modals generate expressive demands from a huge variety of equipment, which goes from high quality traffic management to port automation technologies and to many transport infrastructure items. Let’s see, R$ 34 billions businesses will be driven to road modernization, R$ 13 billions to ports, R$ 3 billions to airports and R$ 8 billions to the States’ subway systems.
During the next years we expect an ascendant curve on the demand of these products. At first sight, it can seem simple, but the suppliers and technologies numbers that this modernization involves is enormous. We are indeed talking about a chain growth. Now is the time. The highlights are pointing to Brazil. The matter is to take the opportunities and take Brazil, once and for all, a country that belongs to the future.
About Sebas van den Ende
Sebas van den Ende is the real alliance president, a Brazilian company originated in the Netherlands, that organizes the TranspoQuip Latin America 2008– an international exposition on transport infrastructure that happens in September 2008 in São Paulo.
About TranspoQuip Latin America 2008