In early 2020, we wrote the article “Perspectives for Brazilian Infrastructure” for Mundo Logística magazine, giving an overview of the federal government's Partnership and Investment Program, with the aim of bringing private investment in concessions, privatizations and leases in key sectors of our logistics, such as highways, railways, ports and airports. However, with the crisis of the new coronavirus, the planning for the auctions had to be postponed, and there was still a risk about the continuity of the policy of concessions, since, in times of crisis, the necessary government intervention could include a resumption of investments infrastructure publics. However, the government did not consider this possibility, and continues to move forward with private investment projects in the country's infrastructure in the quest to improve our transport matrix.
According to the Minister of Infrastructure, Tarcísio Freitas, it is expected that, by the end of this year, at least 14 auctions will take place, among which we can highlight the Ferrovia de Integração Oeste-Leste (FIOL), in Bahia, which would take place on the 4th quarter. For the time being, the FIOL auction would include stretches 1 and 2, which connect Ilhéus to Barreiras, in Bahia, with estimated investments of R$ 6,4 billion. Section 3, still in the study and design phase, would connect Barreiras to Figueirópolis (TO), creating an integration with the North-South railroad, which would bring better logistical conditions for the flow of products and greater attractiveness for investors, with a potential for increased volumes transported.
Figure: Among the attractions of the government's concession policy is the West-East Integration Railroad, with an auction expected to take place in 2020. Source: Investment Partnerships Program
In the road sector, the BR-163 auction, which connects Sinop-MT to Miritituba-PA, should also take place in 2020, and will be a very relevant corridor to further leverage the flow of agricultural production from the Midwest towards the ports of North Arch.
Another important auction, expected to take place in the first quarter of 2021, is the Nova Dutra auction, which connects the main metropolitan centers in the country, São Paulo and Rio de Janeiro. There are almost 600 km contemplating the BR-116/465/101. This stretch is undoubtedly one of the main projects in the government's investment portfolio, and should attract attention and competition from several national and international players. The planned investments are in the order of R$ 17 billion over the 30 years of the concession.
Ports have also been advancing with privatization plans, with the port of Vitória having a public consultation estimated to take place in October, and Santos with its restructuring already started. Finally, airports also have concession plans scheduled for the beginning of 2021, for the expansion, maintenance and operation of 22 airports spread across the country.
Over time, we will see whether this planning will be maintained, given all the uncertainties that remain regarding the Covid-19 pandemic. In any case, the country's infrastructure gap creates great opportunities for companies and prospects for generating jobs and income for the population. We confidently expect the continuity and execution of the planned schedules.
Transport and Infrastructure will be the theme of one of the tracks on 26th International Supply Chain Forum, which ILOS will promote between the 13th and 15th of October, for the first time 100% online. It's worth checking out and watching!
Henry Alvarenga
He has been working in consultancy for 7 years, with experience in more than 20 Demand Planning and S&OP projects, Logistics Network Design, Logistics Master Plan, Inventory Policies, Operations Strategy and Market Intelligence
