Brazil’s USD 18bn/y transport investments not enough

brazilBrazil’s 40bn reais (USD17.7bn) in foreseen annual transportation infrastructure investments over the next few years will not compensate for the billions in surplus costs in the sector.
A study by local bank Itaú BBA estimated that the federal government and the private sector will invest some 200bn reais (USD 88bn) in transportation infrastructure in 2014-18 (40bn reais/y). However, local expert Paulo Resende told BNamericas that transport logistics costs for companies operating the country equate to some USD 270bn/y.
“Approximately 12% of the county’s GDP [currently USD 2.25tn] is spent on transport logistics in Brazil,” Resende said, adding, “This should be cut by at least 4 [percentage points, or USD 90bn].”
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