Brazil unveils US$64bn transportation, logistics concessions program

(This story was originally published on June 9th)

Brazil's President Dilma Rousseff (pictured) and her planning and finance ministers announced on Tuesday 198bn reais (US$64bn) in new infrastructure plans under the country's logistics investment program PIL.

A total of 69.2bn reais will be invested from 2015-18 and the remaining 129bn reais thereafter. The latter includes the country's flagship project, the 40bn-real Brazil-Peru railway, which will connect the Atlantic and Pacific oceans.

Railways have been earmarked the most, at 86.4bn reais; and highways, ports and airports have been assigned 66.1bn reais, 37.4bn reais and 8.5bn reais, respectively, all of which fall under the country's growth acceleration plan, PAC.

The route of the Brazil-Peru railway (CREDIT: Brazil federal government)

THE SECTORS

The railway investments also include 12.7bn reais for the Norte-Sul line and some 16.4bn reais for existing concessions.

Highways are set to receive 19.6bn reais this year, 31.2bn reais in 2016 and 15.3bn reais for new investments in existing concessions. For 2015, a total of five highway concessions totalling 2,603km are planned and for 2016, another 11 new concessions along 4,371km.

As for ports, 11.9bn reais is earmarked for 50 new port concessions, 14.7bn reais for 63 private use terminals, and 10.8bn reais for 24 early renewals on current lease contracts, according to the announcement.

Finally, investments will be used for international airport concessions: Porto Alegre (Rio Grande do Sul state), Salvador (Bahia), Florianópolis (Santa Catarina) and Fortaleza (Ceará).

Projects are also planned for the regional airports of Araras, Bragança Paulista, Itanhaém, Ubatuba, Campinas/Amarais in the state of São Paulo and Caldas Novas in the state of Goiás.