Another investment plan, now the Infrastructure Investment Program

Yesterday, March 7, 2017, the Federal Government announced another package of investments and concessions for logistics infrastructure. Over the past 10 years, we have been introduced to several “investment programs”. Such plans were always accompanied by a beautiful marketing program with investments in the billions, but which in the end failed to deliver even half of what was promised.

Making a brief history, this "alphabet soup" began in 2007 with PAC 1, which included investments between 2007 and 2010. Then came PAC 2, in 2010, with investments between 2010 and 2014, with some projects being the same of PAC 1. In 2014, we saw the PIL return with full force, with planned investments surpassing 2018, in addition to once again presenting unfinished projects and works from previous plans. And now, in 2017, it is the turn of the PPI – Investment Partnership Program.

The PPI's goal is to raise more than R$24 billion in 2017 with concessions alone. Specifically in logistics between 2017 and 2018, we will have the concession of 4 airports, 2 highways, 3 railways and 2 port terminals.

Without wanting to judge the merits of the projects, whether they are good or not, or whether the priority is right or wrong, the important thing is to have better planning and execution control.

In several surveys carried out by ILOS with large companies operating in Brazil, the concern of logistics executives was always greater with the execution and compliance with the schedule than with the selected projects. This is because, with the lack of an adequate project and planning, many problems and difficulties arise at the time of execution, generating the need for additives and delays.

Taking stock of what we saw in the last packages, most completed projects had their cost and/or deadline exceeded, with some more than 50%. Having a raise of 50% or more proves that the project was not well executed or that there was little/no planning.

Executives are used to doing projects, following through, managing uncertainties over time, and finishing on time and on budget. The problem is that it seems that whoever manages our country does not have the same determination.

Anyway, now with one more plan, it's up to us logistics professionals to hope and demand that the works and concessions are carried out within the estimated time and costs. I would not like to, in 2020, once again see old projects with just “new clothes”.