The lack of integration between roads, railways and waterways generates distortions in transportation costs in Brazil. “If we can have an agile and integrated intermodal operation we can combine railways and roads at a lower cost,” says the Secretary for Economic Monitoring of Treasury Department, Antonio Henrique Pinheiro Silveira. “Without an integrated network, the ability to take an item from Sao Paulo, for example, to Bahia by train does not exist and saturates the road system”, said Silveira. “This is one of the logistics challenges in the country on the infrastructure sectors: go for a multimodal integration”, he said.
Saturnino Sérgio da Silva, director of the infrastructure of the powerful Industry Federation of Sao Paulo (Fiesp), sees that Brazil broke the inertia in which the infrastructure remained locked. Yet, considering the demand, Brazil made too small investments. “We could have done much more from what we really did.” For him, the country is experiencing a different period, compared with five years ago, when the port of Santos, for example, without investment, was doomed to strangulation. In 2009, the port will get close to 87 million tons of cargo moved, with a goal of reaching 230 million tons in 2030.
To overcome the problems, the country has the National Plan of Logistics and Transport (PNLT), developed by the Ministry of Transport, which provides 917 projects involving road segments, railways, waterways, ports and airports. From this total, 332 are road projects, 278 ports, 96 railways, 51 waterways and 145 are airports. The total investments are estimated at US$ 166 billion.
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In the transportation sector, the PAC – Program for the Acceleration of Growth — has 95 projects for paving, duplication, capacity adaptation and bridge building with investments of US$ 13.2 billion between 2008 and 2011. Just for road maintenance, US$ 6.6 billion should be spent. For the section concession granted for the private sector, another US$ 4.8 billion. Additional US$ 7.6 billion will be spent by 2011 for the construction, adaptation, remodeling and rail subconcession. For the terminal construction and waterway improvements are expected US$ 1.08 billion. The PAC also provides the financing of almost 400 projects for the construction of ships and modernization of shipyards, with expenditure of US$ 7.4 billion.
Brazil has a level of investment consistent with its level of income. “We’re on a good move, but we are going bad in the game,” says Armando Castelar, of Gavea Investimentos. While the phone industry goes well, the road is worse than expected, considering the level of income. According to Castelar, the contribution of public resources is still low. To be able to grow 5% in 2010, it would be necessary to expand the infrastructure investment to 2% and 3% of the GNP. “The country needs a routine investment and not an emergency plan as the PAC”, said Castelar.
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