Magazine

The Future of Transport in Brazil

By Sebas van den Ende

The lack of investment in transport infrastructure is a big challenge for the Brazilian government. In fact, it is a stumbling block that needs to be solved in order not to decrease the economic growth that Brazil is experiencing.

The transport area is so important that the lack of modernization can bring loss in competitiveness. Looking at it this way, the importance of the government’s program for accelerated growth, or the PAC, regarding transport is undeniable. And with its investment of (BRL) $58 billion, it is undoubtedly the light at the end of Brazil tunnels ... and roads and ports.

We can say that the PAC, along with other initiatives from the government, is the entrance for Brazil into the future – competing at the same level in the country’s development and, of course, improving all Brazilians’ way of life.

Besides the PAC, some other factors make the transport re-structuring crucial, such as the oil discovery by Petrobrás, which will make the ports’ upgrade to international infrastructure standards indispensable. Export of products, manufactured or agricultural, needs to have modernized and integrated rail, road and port systems.

This conjuncture makes 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.

This year, there is a forecast of more auctions, such as for São Paulo’s “rodoanel,” the beltway around Brazil’s largest megalopolis, and the privatization of some ports.

The United States, Canada, Japan and China are among the countries interested in the potential growth of the Brazilian transport market. We are talking about billions in investments, which in turn will result in jobs, growth, profit and progress.

For a long while, people have said that Brazil is the country of the future. So, with the PAC and other government programs, it looks like the future is coming. The country is being prospected as a good place for investments. So it is easy to see that the effective restructure and road, rail and ports modernization are unstoppable.

There is much evidence that 2008 will be a crucial year in transport for Brazil.

Real Alliance, a Brazilian company, will host TranspoQuip Latin America 2008 – an international exhibition for transport infrastructure – on Sept. 9-11 at Expo Center Norte in São Paulo.

TranspoQuip also will host discussions on pertinent industry issues, including safety, management and user comfort.

Brazil’s auctions are a great step in what will be a wave of privatization. As a result, both the concessionaires and the government are, and will continue to be, looking for new technology. The latest in technological innovation will be present at TranspoQuip.

The signposts are pointing to Brazil. The suppliers and technology numbers that its transport modernization involves are enormous. Seize the opportunities and look to Brazil – a country that belongs to the future.



Sebas van den Ende is President of Real Alliance, which organizes TranspoQuip Latin America 2008. He can be reached at

sebas@real-alliance.com. For more information on the exhibition and conference, go to www.transpoquip.com.

Article Abstract from July, 2008




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