A new privatization wave will foster investments in Brazilian infrastructure.
After assuming office in August this year, the new Brazilian government is pushing for the privatization of infrastructure assets in order to put the economy back on a track for growth. Infrastructure privatizations had already been promised by the former administration but were clogged up mainly because of unrealistic requirements and subsequent lack of interest from private investors. However, the shift in administration has set new rules making the investments more attractive and reconfirmed the schedule for auctions to the first semester of 2017.
The hottest assets to be privatized are four medium size airports currently operated by Infraero, the Brazilian public operator. All four airports serve state capitals and the respective passenger volumes range between 3,7 to 9,1 million passengers per year. Two are located in the South region – Florianópolis and Porto Alegre – and two in the Northeast – Salvador and Fortaleza. The government expects combined investments of around 6,5 billion BRL (2 billion USD) for the four airports in the years to come.
Capital spending is to include the expansion of the existing infrastructure and the implementation of new technology. Foreign airport operators have already declared interest in the concessions, including groups such as Fraport (Germany), Zurich Airport (Switzerland), ADP (France), Ferrovial (Spain), Corporación América (Argentina) and Grupo Aeroportuario del Pacifico (Mexico).
Swedish suppliers offering competitive solutions ranging from basic airport infrastructure to high-tech equipment have sighted this business opportunity and started to identify potential clients among future bidders. Supporting these companies Business Sweden engaged in a series of activities towards the airport sector in Brazil.
As a first step we arranged a round table meeting with the Brazilian Civil Aviation Agency (ANAC) and a Swedish delegation led by vice-minister Oscar Stenström on October 17th. The objective was to learn more about the upcoming tenders of four airports in Brazil and to discuss how innovative technology together with modern regulation can make airports operate more efficiently.
As a next step, Business Sweden is planning to arrange meetings with selected private airport operators. A series of meeting are planned to take place between November 21st and 25th and will cover cities such as São Paulo and Brasilia. Additionally in collaboration with our office in Chile we plan to visit Santiago do Chile whose airport also undergoes considerable expansion.
If your company is interested in learning more about these activities and would like to participate, please contact Business Sweden’s São Paulo office in Brazil.