Brazil infrastructure needs upgrade following elections - sources

24 September 2010 19:24  [Source: ICIS news]

HOUSTON (ICIS)--Infrastructure in Brazil needs to be upgraded following the 3 October presidential elections in order for the country to sustain its recently-strong economic growth, local sources said on Friday.

Despite what sources characterised as booming business preceding the non-contentious elections, industry participants said current infrastructure would be inadequate to support rising production and commerce in Brazil in the near future.

Brazil holds high world rankings in exports of ethanol, sugar, paper/pulp, orange juice, meat, soy and rice, and it must also import large volumes of raw materials to supply industry.

Sources in Brazil noted that improvement to the country’s ports, pipelines, roads and highways, not to mention hotel capacities, would be sorely needed in the near to medium term. Otherwise, industry would face increasing difficulties to fulfil rising demand for services.

Ocean ports in Brazil are currently backlogged with outgoing seasonal shipments of sugar and ethanol, as has been the case for the past several years. In turn, the arrival of raw material imports such as caustic soda and plastic resins has been slowed, and products are reaching destinations with substantial delays, sources said.

Despite these looming hurdles, the chlor-alkali business and industrial activity in general remained buoyant in Brazil leading to the elections, according to sources.

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By: Ron Coifman
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