Brazil plans huge investment in roads, ports and railways

The investment program of Brazil, a giant in raw materials, seeks to increase the capacity of its seaports which could exceed $15 billion, has been reported.

The investment would be in addition to the $66,500 million package the government announced to improve its road network and expand its rail system.

The Transport Minister, Paulo Sergio Passos, said the plan includes concessions to double the current 7,500 kilometers of roads with an investment of close to $21,000 million, and for the construction of 10,000 kilometers of railways, for an estimated value of $45,500 million .

On schedule, it will cost about $39,750 billion in the first five years and $26,500 million from the fifth to the twentieth year of the start of work, said the agency DPA.

Passos clarified some aspects of tenders related to road works. He said companies will be chosen based on the offer of lower toll rates. He added that no toll will be charged in urban areas and that operators may only collect it when they have built at least 10% of the works of their respective concession areas.

In relation to the railways, the minister said the government plans to open a major rail corridor that links the Northeast, South and Southeast.

These investments were welcomed by local industry and economic analysts who say that years of insufficient spending on infrastructure are restricting Brazil´s economic potential after its rapid growth in the last decade which has strained their logistics.

The investment model would also be designed to stimulate competition among private companies to operate port terminals.

Of the 10,000 kilometers of railways planed to be built, about 2,600 are already in advanced stages in relation to information and technical studies, so it is expected to be ready by December.

Ilheus, State of Bahia, northeastern Brazil, and the river port of Manaus in the Amazon region, are among the places where private enterprise could be responsible for building and operating new terminals.