Brazilian government to spend US$26 billion to modernise ports

11 December 2012

The Brazilian government plans to modernise the country’s ports and bring them into the 21st century, by channelling private and public investment of an estimated 54 billion reals (US$26 billion).

“We want to welcome in a new era of modernisation of infrastructure and port management,” said the Brazilian president, Dilma Rousseff, at the launch of the Logistics Investment in Ports Programme, last week.

The Programme focuses on public-private partnerships (PPPs) and is intended to allow the country’s communication infrastructures to catch up on what is a recognised delay in modernisation.

With this programme, managed by state planning and logistics company EPL, the Brazilian government plans to boost economic competitiveness by reducing the country’s transport costs.

The ports that will be modernised as part of the programme are located in four regions: The southeast (Espírito Santo, Rio de Janeiro, Itaguaí and Santos), northeast (Cabedelo, Itaqui, Pecém, Suape, Aratu and Porto Sul/Ilhéus), north (Porto Velho, Santana, Manaus/Itacoatiara, Santarém, Vila do Conde and Belém/Miramar/Outeiro) and south (Porto Alegre, Paranaguá/Antonina, São Francisco do Sul, Itajaí/Imbituba and Rio Grande).

The biggest investment will be made in 2014-2015 (US$14.9 billion) and the remaining US$11.2 billion will be invested in 2016-2017.

A further 2.6 billion reals (US$1.25 billion) will be used for road, rail, and river access to the country’s 18 main ports.

Alongside the government plans included in the Accelerated Growth Plan, around 1 billion reals (US$481 million) will be applied by the Transport Ministry and the remainder by the states and the private sector.

The investment is intended to increase the productivity and competitiveness of the country’s ports, whilst also establishing a new legal framework for piloting services, access and entry into ports and construction of private terminals. It is also intended to speed up the process of port leasing and granting of environmental licences.

The sector will also undergo institutional reorganisation. This means that the Ports Secretariat, which is linked to the country’s Presidency, will be responsible for centralisation of port planning, as well as sea, river and lake port management.

Brazil’s logistical modernisation programmes make the country a focus for construction and road and rail management companies on the look out for new business opportunities.

Some 133 billion reals (US$66.5 billion) are expected to be spent on nine sections of road and 12 sections of railway.

Around 91 billion reals are due to be invested in over 10,000 kilometres of railway lines, and 42.5 billion on 7,500 kilometres of roads.

Investment plans to modernise Brazil’s airports and its water and sewerage network is also being finalised in Brasilia. (macauhub)