References

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Logistics- Rail and Road Development

Brazil is the world's ninth-largest and one of the fastest growing economies.  Brazil’s government actively encourages foreign investment in many sectors. Brazil law provides equal protection and guarantees to foreign investment as it provides to investment by Brazilian nationals.

Brazil heavily depends on foreign investment in infrastructure sector as it is the main key to sustainable growth. The Brazilian State accepts the new role as co-participant of growth and prioritizes allocation of public resources to design and development of the funding mechanism in development of infrastructure.

The Brazilian government encourages development and implementation of innovative models that help with planning of public utilities by the private sector. The public-private partnership is considered important in Brazilian economy.

The Brazilian Government launched PAC (Programme to Accelerate Growth), a growth acceleration programme, in 2007. It is an infrastructure investment package designed to boost economic expansion and creation of jobs. The government has promised BRL 504bn (US$249bn) of investments from 2007 to 2010 to increase the rate of economic growth to approximately 3% per annum.

The PAC programme covers repair of highways, building airports and ports and housing, and water and sewage systems for poor communities in Brazil.  The infrastructure development also leads to developments in oil, gas and transportation.

The different project that are open to investment opportunities in transportation sector are:

1)   BR-163 Highway Border MT/PA to Santarem in the North

The total cost of this project is $250 million and the highway stretches to a length of 1,030 km. The government encourages public-private partnership and provides concession to the project.

2)   BR-101 Natal to AL/SE border

The total cost of the project is $636.4 million and the total length of the highway is 440 km. The project is an IMF pilot project and open for public investment.

3)   BR-116/324 between Feira de Santana (BA) and Minas Gerais border

The total estimated cost of this project is $1,080 million and the total length of the highway is 633 km. The project is open for public-private partnership.

4)   BR-381 Belo Horizonte – Sao Paulo

The total estimated cost of this project is $600 million and the length of highway is 586 km. The government provides concession for the project.

5)   BR-493 Rio de Janeiro Metropolitan Bypass

The total estimated cost of this project is $100 million and total length of highway is 77 km. The project is an IMF pilot project which is open for public-private partnership.

6)   BR-116 Regis Bittencourt Highway

The total estimated cost of this project is $388 million and total length is 32 km. The government provides concession for the development of this highway.

7)   Construction of Sao Paulo Metropolitan Road Ring South

The total estimated cost of this project is $760 million and the length is 23 km. The project is open for public-private partnership, or partnership with federal or state government.

The projects that are open for public-private partnership in Railways are:

1)   Construction of the North-South Railway, Section from Estreito to Gurupi

The total cost of this project is $558 million and total length is 665 km. The project is open for public-private partnership.

2)   Construction of  the Transnordestina Railway (three sections)

The total estimated cost of this project is $284 million and total length is 571 km.

3)   Construction of Sao Paulo's  Railway Bypass (North Section)

The total estimated cost of this project is $80 million and the total length is 66 km. The project is open for public-private partnership.

4)   Construction of  Rail section Ipiranga – Guarapuava

The total estimated cost of this project is $88 million and total length is 110 km. The project is open for public-private partnership.

5)   Construction of Section Alto Taquari Randonopolis (MT)

The total estimated cost of the project is $160 million and total length is 200 km. The project is open for private investment.

6)   Pantanal Tourist train:

The total estimated cost of the project is $80 million and total length is 460 km. The project is open for public-private partnership.