Brazil's highway sector riding an investment wave with new concessions

Two of Brazil's largest highway operators expect to expand their capex plans this year, a trend likely to be replicated across the sector due to a surge in new contracts.

CCR, which operates urban mobility and airport concessions in addition to highways, plans to invest 5.7bn reais (US$1.0bn) in its highway portfolio this year, up from 4.19bn reais in 2024. The company had 11 highway concession contracts in 2024 and now holds 13.

CCR's total investment plans across all segments are projected to reach 8.19bn reais by the end of this year, up from 7.34bn reais in 2024.

In October, the company won the auction for the Rota Sorocabana highway concession in São Paulo state. The 460km route connects 17 localities and the concession involves planned investments of 8.7bn reais over the 30-year contract term.

In December, CCR secured the concession for lot 3 of Paraná state highways. Covering nearly 570km, the concession involves 9.87bn reais in capex and 6.04bn reais in opex, with planned works including 133km of divided highways and 224km of additional lanes.

Meanwhile, CCR competitor Ecorodovias expects its capex to reach 5bn reais this year, up from 4.4bn reais in 2024. The company's portfolio includes 11 highway concessions spanning over 4,700km, along with a multipurpose terminal managed by Ecoporto, a unit of the company.

Ecorodovias recently expanded its portfolio as well. In November, it won the 30-year concession for Nova Raposo with a bid of 2.19bn reais. The project, requiring 8bn reais in investments, includes road sections currently managed by CCR ViaOeste – whose contract expires this year – as well as sections under the roads and highways department (DER). The concession covers 92km of the Castello Branco (SP-280), Raposo Tavares (SP-270) and SP-029 highways.

The increased investment by these two industry leaders reflects a broader trend of growth in the sector, which is also attracting medium-sized firms and new entrants.

"Without a doubt, we are in the midst of the largest investment cycle in the country's highway sector. Last year, private sector investment in Brazil's highways reached about 20bn reais, and this year we expect around 25bn reais," Marco Aurelio de Barcelos Silva, CEO of highway concessionaires' association ABCR, told BNamericas.

Silva attributes the rise in investments to a steady pipeline of new projects from federal and state governments. This year alone, Brazil plans to offer 15 new highway contracts – one of which has already been tendered – compared with seven in 2024.

"We have reached a high level of regulatory maturity in the highway sector. As seen in more developed sectors like energy, the trend is now a steady flow of contract offerings, both for new concessions and those up for renewal," Silva added.

With the new contracts, the sector is seeing participation from a range of players, including Brazilian group EPR (a joint venture between infrastructure firm Equipav and fund manager Perfin), medium-sized operator Monte Rodovias, operator Arteris, investment firm Via Appia, asset managers 4UM and Opportunity, and investment fund Pátria Investimentos. 

The projected investment boom is occurring despite Brazil's high interest rates, a scenario expected to persist as the central bank seeks to control inflation.

Despite these short-term pressures, highway operators are securing long-term financing, supported by development bank BNDES.

BNDES has already announced a record 30bn reais in financing approvals for highway projects this year, surpassing the previous record of 23.5bn reais in 2024.