Brazil’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].”
Source: www.bnamericas.com photo: www.bblc.co