New stage of Logistics Investment Program kicks off

President Dilma Rousseff attended Tuesday (June 9) the launching ceremony of the new stage of the Logistics Investment Program at Palácio do Planalto, with planned investments of $63.6 billion in roads, railways, ports, and airports.

The program is meant as an infrastructure stimulus package and is one of the government's hopes of unlocking Brazil's economy in the coming years.

According Planning Minister Nelson Barbosa, this new stage comes as a response to growing production levels, car fleets, enger flows, and cargo flows in the country's ports.

“Infrastructure is in high demand in Brazil. And if there's demand, there are investments,” he said.

In addition to transferring highway stretches to private management, the package includes 11 new highway projects. For these, concession bids will be based on the lowest price, as was the case with the Rio-Niterói bridge, which had its concession contract renewed this year.

The concession model for railways will depend on the features of each project. The projects include stretches of the North-South Railway and a new railway linking Rio de Janeiro and Vitória, as well as the Bioceanic Railway, which will link Brazil to Pacific Ocean, in a partnership with Peru.

For roads and railways, the estimated investment is $48.8 billion.

Also as part of the program, four airports will be auctioned to be run by the private sector – Porto Alegre, Salvador, Fortaleza, and Florianópolis.

The auctions are expected to take place beginning in the first quarter in 2016. The government plans to spend $2.7 billion on the four projects.

The Brazilian Airport Infrastructure Company (INFRAERO) will partner with the winning bidders in managing the airports.

Regarding the ports, the government is planning a $11.9 billion investment in 50 new leases, 63 new permits for Private Use Terminals (TUP) and early lease renewals.

Translated by Mayra Borges

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