The Brazilian government is expected to announce the privatization of airports in the south of the country, including Curitiba, in the second quarter, as part of a plan to attract private capital to improve the country's logistics, said the secretary of the Investment Partnerships Program (PPI), Adalberto Vasconcelos.
The Ferrogrão e Fiol railway projects, which serve the central grain belt, will be ready for tender this year or in early 2020Vale and logistics firm Rumbo may sign early renewal of rail concessions this year, which will include a commitment to new investments, the official said, according to Reuters.
Chinese investment would be "very welcome" in Brazilian infrastructure projects, Vasconcelos added.
improve infrastructure
Bolsonaro is promoting the PPI, launched in 2016 by the Michel Temer government in order to improve the poor infrastructure that increases the cost of exporting soybeans and other products.
In addition, 20 airports will be auctioned on March 15, in three regional blocks to improve air travel for tourism, agriculture and the oil industry.
Vasconcelos said one or two blocks of airport concessions will be announced after March, including Curitiba, but excluded Congonhas in Sao Paulo and Santos Dumont in Rio de Janeiro. These will not be auctioned for now, because they are essential for the financing of Infraero, the state-owned company that manages the airports.
Less dependence on road transport
The government plans to build more railways and make current operators invest in expansions while signing concession renewals in order to reduce Brazil's heavy dependence on road freight transport.
By 2025, the government hopes to double the share of freight transported by rail from 15% to 31%, Vasconcelos said. Vale and La Ruta have already reached an agreement and their contracts only need approval from the Federal Court of Auditors (TCU), he said.
The Fico and Fiol railways will connect agricultural production to the North-South line and to the Atlantic ports, with the capacity to move 8 million tons of grain per year.
Control of Eletrobras will be sold to private investors through the sale of shares, following the spin-off of two strategic subsidiaries, Eletronuclear and Itaipú Binacional, on the border with Paraguay.
Source: Reuters
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