Brazil has long been predicted to be one of the top global economies in the 21st century, but has had it’s struggles over the past number of years. However, it is starting to gain some momentum as of late and a recent government announcement of major infrastructure investments totaling US$244 billion, could go a long way to speed up their future economic expectations. The country is the fifth largest in the world, in size and in population, with almost 200 million citizens. It currently ranks 7th in GDP but many global analysts believe it could eventually be number 5 on the list.
Brazil is one of the fasted emerging markets currently in the world, and as a result it must invest in infrastructure now in order to keep pace with the growing consumer base in the future. The ambitious plans will see investments in sanitation, housing, energy, and telecommunications with a huge amount earmarked for the transportation sector with major upgrades to the country’s highways, railways, airports and in particular their shipping ports. Right now, Brazil is experiencing regular delays at major ports and if the nation wants to be in a position to compete in the growing global now and in the future, it must make shipping port investments and upgrading its transport systems/facilities; in order to capitalize on the impending opportunities.
The Brazilian government has plans to spend hundreds of billions of dollars to build a solid foundation for their future economic growth. Many consider this to be an investment that will continue to pay off for decades. The money spent on their ports will make them more efficient and effective and put them on the path to grow into the global consumer powerhouse that many experts have forecast the nation to be. Investing is all about future prospects and it looks like the government of Brazil is expecting these prospective infrastructure investments will pave the way to a brighter and more prosperous future for it’s people and the country itself.
The President of national development bank BNDES, Luciano Coutinho, stated recently that $28 billion was allocated to the ports saying, “According to consultancy studies, the investment amount is expected to be carried out over the next three years by (2016).” This will put Brazil in an excellent position when the new Panama Canal Expansion opens sometime in late 2015. This massive investment into the country’s ports has been a while in coming and the announcement is encouraging to both the general population and business investors. It means many thousands of new jobs and great investment opportunities for both local and foreign investors.
After announcing (in November 2012) a service expansion into Europe and Turkey, ABF Freight System continues to expand its global shipping reach, with ocean transport services now reaching Argentina, Brazil, Chile, Colombia, Peru and Uruguay. In a recent statement, ABF Global announced it will begin providing single contact for full-container-load (FCL) and expedited less-than-container-load (LCL), supply chain solutions.
“With an established presence in Europe, China, India and Southeast Asia countries, South America is a natural extension of our global coverage,”- ABF GSCS division vice-president.
The introduction of the new shipping service, allows ABF customers to benefit from end-to-end visibility, meaning shipping clients can monitor the entire transport process; from loading to delivery. The company also announced, that it has prepared dedicated space on shipping vessels, which provides customers a single-contact service; through the cargo shipment.
The company has already gained access to Asian markets, by establishing shipping connections in China, India and other Southeast Asia countries. And, with the introduction of the new services, ABF Global now covers approximately 90 percent of the total ocean international market; to and from the United States. The company says it’s goal is to reach 96 percent of the total import/export market, before the end of 2013.
Economists agree that Columbia has a great deal to accomplish, before it has established a solid foundation, for building and maintaining long-term economic growth. For example, the country’s transport infrastructure is in dire need of investment and improvements, if it hopes to accommodate the growing demands of the emerging global economy; in the next few years.
Columbia needs immediate investment into their ports, to make the necessary upgrades to facilitate the new giant mega-container ships, that will transport even more shipping containers; to meet the rising consumer demand. Along with needed port improvements, the country’s railways and roads must be upgraded and investment in shipping containers must increase, to enable the efficient transport of an increasing number of goods; all over the country. Many other South American countries are prepared or preparing for the expansion of the Panama Canal in 2015, and Columbia wants to be in a position to profit from the expected economic boom, and move forward toward a prosperous future; of their own.
The country’s free trade agreement with the United States recently took effect and Columbia is looking to capitalize on an increase in trade, between the two nations. When it comes to nation-building, investments in the fundamental transport infrastructure must be made first, in order for precious cargo to reach consumers; and the country to move forward. Although there was a record $15 Billion invested into Columbia’s economy in 2012, there is still much work to be done to meet shipping industry demand, and capitalize on the growth being experienced by established and emerging markets; all across the globe.