May 21 - According to international reports, port infrastructure in Brazil is set for significant development following president Dilma Rousseff winning congressional support for a plan to attract an estimated USD27 billion of investment from the private
The Brazilian Association of Infrastructure and Basic Industries welcomed the approval, hoping that investment in Brazil's lacking port infrastructure will reduce congestion and improve efficiency and in turn lead to more robust growth of the country's economy.
Notably the bill reduces restrictions on privately owned terminals and allows for said terminals to handle third-party goods, as well as supposedly reducing red-tape surrounding the employment of workers - a move that should hopefully trigger widespread private sector investment.
Brazil's economy grew 0.9 percent in 2012 and 2.7 percent in 2011 - markedly slower than its other BRIC counterparts. The country's ageing port infrastructure - which is ranked 135th out of 144 countries according to the World Economic Forums' Global Competitiveness report - is a key reason for the declining growth rate.
However, the bill has yet to be ratified and parts of the agreement may be subject to veto.
| The Port of Santos - Brazil's busiest port |
