The A Team: The Inside Man
Fri, 10 Sep 2010
Brad Brennan on how Brazilian transport infrastructure is moving towards modernisation
I read recently that the quality of Brazil’s transport infrastructure still ranks as among the worst in the world, despite growing demand from European manufacturers for goods produced in the country. Brazil was ranked 17th among its global commercial rivals – on a par with Colombia – according to Brazilian economic consultancy LCA Consulatores.
Port infrastructure is the greatest challenge outlined in the report, while roads are also in desperate need of improvement. The consultancy attributes Brazil’s problems to a lack of investment in infrastructure over the past few decades.
Despite the current challenges, there are signs that the country’s transport infrastructure is slowly improving. I’d imagine that this is partly due to the impending 2014 World Cup and 2016 Olympic Games, both set to draw huge numbers of visitors to games and events across Brazil.
The Brazilian government is gradually investing in transport and infrastructure projects to improve connections to ports and airports and ease the movement of goods around the country. A new 3.5km-long bridge is being constructed in Manaus, the industrial capital of the vast Amazonas state. It will be the first ever bridge to cross the Amazon system and will span its major tributary, the Rio Negro.
Reactions to the bridge are mixed, with many Brazilians delighted at the prospect of increased channels of trade and mobility, while environmentalists are concerned that it will cause further devastation to the region’s rainforests, which until now have not been linked to a major road network.
From a supply chain perspective, the new structure should accelerate the flow of goods from manufacturing plants in Manaus, which is known for the production of electronic goods such as televisions, mobile phones, car radios and navigation systems.
It’s also worth noting that the World Bank approved US$327 million of additional financing for São Paulo State in July 2010. This area is a hot-spot for the production of automotive components. The funding will be used to improve the efficiency of the state’s paved municipal road network and fund the rehabilitation of approximately 1,900km of local feeder roads.
As product sourcing from BRIC countries continues to increase, I’d suggest that manufacturers stay well informed of the transport challenges in these nations, as the resulting delays can cause severe disruption to international supply chains.
Readers may have heard of the recent nine-day traffic jam on a Chinese highway, caused by road improvement works. Locals capitalised on the opportunity by offering overpriced refreshments to weary drivers. This certainly puts the M25 into perspective.
Brad Brennan is MD of Evolution Time Critical
Port infrastructure is the greatest challenge outlined in the report, while roads are also in desperate need of improvement. The consultancy attributes Brazil’s problems to a lack of investment in infrastructure over the past few decades.
Despite the current challenges, there are signs that the country’s transport infrastructure is slowly improving. I’d imagine that this is partly due to the impending 2014 World Cup and 2016 Olympic Games, both set to draw huge numbers of visitors to games and events across Brazil.
The Brazilian government is gradually investing in transport and infrastructure projects to improve connections to ports and airports and ease the movement of goods around the country. A new 3.5km-long bridge is being constructed in Manaus, the industrial capital of the vast Amazonas state. It will be the first ever bridge to cross the Amazon system and will span its major tributary, the Rio Negro.
Reactions to the bridge are mixed, with many Brazilians delighted at the prospect of increased channels of trade and mobility, while environmentalists are concerned that it will cause further devastation to the region’s rainforests, which until now have not been linked to a major road network.
From a supply chain perspective, the new structure should accelerate the flow of goods from manufacturing plants in Manaus, which is known for the production of electronic goods such as televisions, mobile phones, car radios and navigation systems.
It’s also worth noting that the World Bank approved US$327 million of additional financing for São Paulo State in July 2010. This area is a hot-spot for the production of automotive components. The funding will be used to improve the efficiency of the state’s paved municipal road network and fund the rehabilitation of approximately 1,900km of local feeder roads.
As product sourcing from BRIC countries continues to increase, I’d suggest that manufacturers stay well informed of the transport challenges in these nations, as the resulting delays can cause severe disruption to international supply chains.
Readers may have heard of the recent nine-day traffic jam on a Chinese highway, caused by road improvement works. Locals capitalised on the opportunity by offering overpriced refreshments to weary drivers. This certainly puts the M25 into perspective.
Brad Brennan is MD of Evolution Time Critical
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