December 2007:

Auctions in Brazil’s transport sector arouse world optimism

Rio de Janeiro, December 3rd, 2007 - The R$ 8 billion investment expected this current year, the on-going PAC, the Growth Acceleration Program, and the successful realization of the Public Private Partnerships, the result of the auction of Southern and Southeastern Federal Highways are causing excitement in the global transport market.

The success of the long-awaited auction that privatized seven segments, totaling 2,600 kilometers of federal highway in Brazil’s Southern and Southeastern regions has caused excitement in the global transport market. Where previously there was skepticism, the investment constrains have now been removed. With the materialization of the Public Private Partnerships (PPPs), the government has taken a concrete step towards opening doors for private investment in the transport and infrastructure sector.

Along with international optimism, the signals given off by the government and the 2.6 thousand kilometer road auction have triggered a chain reaction of growth. Proof of this optimism is foreign companies’ growing interest in Brazil, including Spanish groups like OHL and Acciona.  

The PAC, in combination with factors such as Brazil’s size and economic growth capacity promising for the transport sector and is expected to attract foreign investments, especially in infrastructure. Several international companies are showing interest in winning a piece of the approximately R$ 34 billion which will be invested in the modernization of highways as well as the R$ 13 billion in ports, R$ 3 billion in airports and R$ 8 billion in state subway systems.

Investment in transport is critical for Brazil to meet its growth objective of 5% GDP during President Lula’s second term in office. Several projects such as the construction of a new airport in São Paulo and the studying of a railway construction connecting Mato Grosso do Sul to the Paranaguá port, in Paraná, show that these measures are progressing from the drawing board. The government will progress steadily in investing in the transportation modalities starting with those of the PAC, which is expected to attract foreign investment capital.   

Amongst the projected investments, the Brazilian government plans to construct 2,500 kilometers of railways by 2010. In the waterway segment, besides the renovation of 12 ports, the Program foresees the construction of 67 river ports and the dam in Tucuruí. In the highway segment investments include the construction of 6,876 kilometers; the duplication of 3,214 kilometers and the recovery of 32 thousand kilometers of federal highways, as well as the installation of safety devices and weigh stations. To achieve these goals, the DNIT, (the National Department of Transport Infrastructure), must invest R$ 8 billion.

According to Sebas van den Ende, president of Real Alliance, the result of the first highway privatization auction is a good market thermometer. The intensely competitive auction, from which the Spanish OHL emerged victoriously, has brought prices down significantly. On the segment Fernão Dias, the toll will be R$ 0.99, a quarter of the average price for federal highways. One of the conditions must meet OHL, is to invest R$ 25 billion in technology on the highways.

In the first stage of privatization of federal highways, ANTT, the National Agency for Road Transportation, auctioned seven segments of the Transbrasiliana highways; namely BR-393; BR-101; Fernão Dias; Mercosul and two of the Régis Bittencourt highway.

In this market context, an international transport infrastructure event is of essence to bring together the various modalities of the transportation market and facilitate discussions that lead to more effective solutions through real-world benchmarking. A platform that brings together sector intelligence, industry and government on the four transport modalities of transport infrastructure will undoubtedly be pivotal for this sector in Latin America. “TranspoQuip will host debates on pertinent industry issues, including: safety, management and user comfort”, says van den Ende. “The auction was a great step in what I believe will be a wave of privatization. As a result, both the concessionaires and the government alike, are, and will continue to be looking for new technology. The latest in technological innovation in Brazil and overseas will be present at TranspoQuip.”

Real Alliance, a Brazilian company, of Dutch origin, has recently launched TranspoQuip Latin America 2008 – an international exhibition for transport infrastructure that will take place in September 2008 in São Paulo (www.transpoquip.com).
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November 2007:

Brazilian Ministries support TranspoQuip Latin America

November 14, 2007, Rio de Janeiro - The Minister Pedro Britto do Nascimento and the deputy Secretary Dr. José Roberto Serra, have confirmed their presence at the official opening of the transportation infrastructure conference and exhibition.

TranspoQuip Latin America, an international transportation infrastructure conference and exposition, has received the support of a large number of trade, governmental and private entities. Amongst them, the Ministry of Cities and the Special Port Secretariat, whose Secretary, Minister Pedro Britto do Nascimento, has agreed to participate in the opening of the event. The Deputy Secretary of the Secretary of the Special Secretariat of Ports, Mr. José Roberto Sierra, will deliver a lecture during the event’s official opening.

Brazil’s transportation sector is currently in the spotlight and the Brazilian government is making significant investments to modernize all transportation modalities as part of it’s Growth Acceleration Program (Programa de Aceleração do Cresimento).

The Ministry of Transportation has also confirmed co-operation and support for the event. According to Edison de Oliveira Vianna Jr., from the Ministry of Transportation, this subject is crucial for the continuity of Brazil’s economic and social growth. “An event such as TranspoQuip gains relevance by bringing together technology solutions from several infrastructure segments, from Brazil and abroad, so that we have more alternatives, can fine-tune the investments amongst the various sectors, and by providing a platform for discussions on current issues.

The exposition will bring together some 250 global and Brazilian suppliers of equipment, software and services for highways, ports, airports, railways and urban transportation systems. In parallel to the exhibition, conferences and seminars will be held to discuss the management, security, user-comfort and other modality-specific issues. The seminars will be led by representatives from the government, associations and corporate entities.

According to Sebas Van den Ende, president of Real Alliance, organizer of the event, this support demonstrates the importance of the investments in infrastructure to support the country’s expected growth for the coming years. “Latin America is experiencing a moment of economic stability. There will be an increasing need to invest in the transportation sector”.

TranspoQuip Latin America, which will be held at the Expo Center Norte, in São Paulo, from September 9 to 11 of 2008, also has the institutional support of ABEPH [Brazilian Association of Port and Waterway Companies]; ABETRANS [Brazilian Association of Companies in the Traffic Sector]; ABCR [Brazilian Association of Highway Concessionaires]; ABNT [Brazilian Association of Technical Standards]; ABPv [Brazilian Pavement Association]; ABRAMET [Brazilian Association of Traffic Medicine]; ABTP [Brazilian Association of Port Terminals]; ANEOR [National Association of Road Maintenance Companies]; ANTAQ [National Agency of Waterway Transportation]; ANTF [National Association of Railway Transporters]; ANTP [National Association of Public Transportation]; ANTT [National Agency of Land Transportation]; CNT [National Transportation Confederation]; Denatran  [National Traffic Department]; DNIT [National Department of Transportation Infrastructure]; Infraero [Brazilian Airport Infrastructure Company]; ITS Brasil [Intelligent Transportation Systems]; NTU [National Association of Companies in Urban Transportation]; Porto de Santos – [Port of Santos]; SINAENCO [National Union of Architecture and Engineering Companies]; SINICESP [Union of the Heavy Construction Industry of São Paulo] and SNTF [National Union of Railway Transporters].
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October 2008:

TRANSPORTATION INFRASTRUCTURE WILL HOLD A MEGA-EVENT IN SÃO PAULO, BRAZIL

(The event reflects the interest of world industry in PAC’s R$ 58 billion for the modernization of roads, railroads, ports, fluvial system and airports in the country)

This refers to TranspoQuip Latin América, an international mega-exhibition that will rely on about 250 large world and Brazilian suppliers of industrial inputs, equipment, software and services for highways, ports, airports, railways and urban transportation systems.

TranspoQuip will also rely on a congress that will gather specialists in topics such as management, safety, comfort and regulatory landmarks related to transportation infrastructure. Scheduled for September 2008, the event already starts with the adhesion of almost all the national government entities and agencies connected with the transportation sector, such as the Ministry of Transportation, the Ministry of the Cities, CNT, DNIT, ANTT, Infraero, Denatran, ANTAQ and the Secretary of Ports, in addition to dozens of other agencies.

In accordance with Sebas Van den Ende, president of Real Alliance, the green light to begin commercialization of the event has been given not only by the fast engagement on the part of Brazilian entities, but also from the winning by Real Alliance of a few anchor sponsors, such as the case of giants 3M and Telefon Gradnja.

In accordance with the executive, TranspoQuip Latin America is a response of global industry to the growth foreseen for Brazil around 5.5% in the next few years and the results of this high trend in terms of investments in transportation infrastructure. “The world market is convinced that Brazil will really make the expenditures foreseen by PAC, or at least a significant part of them. This initiative alone on the part of the Government represents a volume of investments in the order of R$ 58 billion in transportation infrastructure already for the next three years”, states Van den Ende.

The executive also evaluates that there is great interest on the part of world industry in having the sector evaluate more closely the business opportunities open by the PPP model (Public-Private Partnerships) and TranspoQuip can exercise this role by putting together the several interested parties both in Brazil and abroad. “Several international players have already indicated interest in participating of the business in the order of R$ 34 billion that will be channeled toward the modernization of highways, in addition to the R$ 13 billion for ports, R$ 3 billion for airports and R$ 8 billion for the subway systems of the states”, remarks the president of Real Alliance.

Before leading the foundation of Real Alliance, with the support of private investors, the president of the company, Sebas Van den Ende had already acted for eight years in the business of international fairs in several countries in Europe and directly in Brazil. In the course of the period he spent at the Dutch company RAI, a global reaching organizer of sectorial events, also known as the owner of the largest exhibition center in Holland, the executive led the commercialization in Latin America of the international fair, Intetraffic, an event for road transportation, in addition to fairs oriented towards vertical segments such as the electrical and sanitation sectors; today, Real Alliance is the representative of Latin America for Amsterdam RAI.

For the formulation and direction of the contents of the International Congress that integrates TranspoQuip Latin America, Real Alliance has created an Operational Directorate that will be in charge of specialist Thais Helena Monteiro Penteado, a professional with more than 30 years insertion in the segment and known in the entire country for having occupied strategic positions, such as the Director of DER/SP and President of the Instituto Pan-Americano de Carreteras Brasil.

According to Thais Helena, Real Alliance is now under the stage of completing the setting up of the four modal committees that will be defining the contents of the congress and that will be comprised by business, sectorial and government representatives. “In all, there will be 24 national leaderships involved in this process”, points out the Director.

Real Alliance has also already started to commercialize the areas for the exhibition, which will be held at the Expo-Center Norte, in São Paulo.

TranspoQuip Latin America 2008
From September 9 to 11, 2008 – São Paulo Expo Center Norte
Tel: +55 21 3717-4719 – info@transpoquip.com
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