In Brazil, the leaders of the country have become increasingly concerned about the fact that, as their economy continues to emerge, their shipping ports continue to be backed up and repeatedly cause costly delays for anxious shipping companies. In fact, if major investments are not made soon to upgrade and modernize Brazil’s port infrastructures, the nation will not be able to capitalise on profitable opportunities in the future and enjoy the rewards of the economic progress they have made; over the last decade of the country’s remarkable growth and development.
With that being said, there may still be some hope for the struggling industry yet. A recent government announcement has allowed for a sharp increase in private investments, aimed at fixing the country’s growing problems with port backlogs. Recently the Brazilian government passed a reform bill, that will allow for up to $25 billion in private investments to be made. This investment is intended to ensure that there are dramatic improvements made to the port systems, over the next few years. Although some final amendments to the bill are still expected, the country’s exporters, port companies and shipping lines will most likely be pleased with opportunities presented, by the government’s proposed reforms.
“With the end of the distinction between owned and third-party cargo, private entrepreneurs are to have the right to request authorisation to construct, at their own risk, new terminals to any load [cargo] type, contributing to the flow of transport and foreign trade, as well as reducing costs by increasing competition and productivity.”- The Brazilian Association of Infrastructure and Basic Industries (ABDIB).
These types of infrastructure projects generally take at least four to seven years to complete, which would put Brazil in a more competitive position, sometime between 2017 and 2020. For investors who can identify profitable business opportunities and strategically position themselves in the market beforehand, the economic boom (expected by 2020) will translate into long-term investment success and sizable investment returns for many happy investors.
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.