Even with the global economy recovering from a difficult phase caused by the financial recession, the Brazilian railway sector aims at good results in the coming years. Already in 2010, it is estimated that the production of passenger coaches to grow 10%, from 460 units produced in 2009, to 500 coaches.
Vincent Abate, president of ABIFER (Brazilian Association of the Railway Suppliers), believes that this decade will be highly promising for the industry due to the many ongoing projects throughout the country, achieved mainly due to the implementation of the 2014 World Cup and the 2016 Olympics in Brazil.
Recently, the federal government announced the creation of the Mobility Growing Acceleration Program (GAP). The project, which should aim for US$ 5 billion to improve transportation in the cities which will host the Soccer League, provides that 30% of the funds will be used in railways.
However, the executive says that not only the sporting events will drive this market. He said the High Speed Train should stand out among the initiatives. “We are pleading with the federal government that 60% of the equipment of the bullet train is produced in Brazil”, he argues.
Abate explains that the measure does not “stop” the import of such equipment. “When the passenger coaches are produced in the country, everyone wins. Jobs are created and the economy moves, it is not only in the rail industry that the benefits are noticed. Throughout the production chain the action reflects”, he adds.
And the executive continues, “The companies located here in addition to generating income, serve after-sales and technical assistance, for example. The work does not end when the goods are delivered. When the import happens, we do not have this advantage”.
However, the chairman points out that for the rail sector to keep growing, it is necessary that some issues must be reviewed. “Sometimes, we cannot win the competition. In Rio de Janeiro, for example, the Chinese won the contract, due some benefits such as exemption from import taxes, it was more advantageous for the state to bring passenger cars already built“, points out.
He said the ideal would be that firms in the country to obtain benefits similar to this. “There are some cases where the Brazilian industry has priority, however, it is interesting that it should happen nationwide”, Abate concludes.
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