Brazil transport projects to benefit chemicals – Eastman VP

28 August 2012 12:05  [Source: ICIS news]

LONDON (ICIS)--Brazil’s plans to invest in roads, rail and ports will provide a much needed boost to chemicals transportation in the country, Juan Carlos Parodi, Eastman Chemical vice president and managing director for Latin America, said late on Monday.

The transport of bulk chemicals will benefit from wider roads with better connections to cities, resulting in improved supply chains, he said. “Brazil is a country of continental dimensions. It’s almost as big as the US. But it doesn’t have that infrastructure,” he added.

The Brazilian government announced plans earlier this month to sell licenses to build and operate roads and railways that will require as much as $66bn (€53bn) in investments over 25 years. Similar measures are expected for airports and seaports in the coming weeks.

As long as the concessions are attractive enough to generate investor interest, the move will help clear Brazil’s clogged roads, railways and airport terminals and improve supply chain efficiencies.

The announcement comes as Brazil prepares to hosts the 2014 FIFA World Cup and the 2016 Summer Olympics.

“This shows a willingness of the Brazilian government to use private investment to expand rapidly the country’s logistics network,” Parodi said.

With these investments, the cost of transporting chemicals will decrease, and port improvements will help cut the operational costs of importing raw materials, he said.

“Its public knowledge that they need to improve it [transport systems]. It will demand huge amounts of capital and it is positive to see the government open to private industry capital for these investments,” he said.

The transport projects, combined with other government measures such as improvements in Brazil’s tax structure, are “one more reason to see Brazil as a source of growth,” Parodi added.

($1 = €0.80)

By: Anna Jagger
+44 20 8652 3214

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