Expert: Lack of logistics infrastructure, oil prices to blame for transport sector growth

Wednesday, June 11, 2008

The low 3.7% growth in the Brazilian transport sector's contribution to 1Q08 GDP reflects the lack of logistics infrastructure in the country and high oil prices, Paulo Tarso Resende, logistics coordinator at thinktank Dom Cabral Foundation, was quoted as saying by news service Agência Estado.

"These are two negative points and the sector is dependent on both," Resende said.

This shows that the logistics problems in the country have not been solved, in spite of official propaganda regarding investment in the sector, the expert said, adding: "Up to now, at least, we have not seen new investment in the area of transport."

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Resende said the difference in growth between the transport sector and overall GDP is getting wider every quarter. "The growth curve in the transport sector has always been above general GDP, but last year this changed, and since the end of 2007 the difference is becoming more evident," he said.

According to the Brazilian statistics bureau, GDP was up 5.8% in 1Q08 compared to the same period last year. The industrial sector grew 6.9% in the same period.

The industry expert also said it would be a shame if the country's economic growth were to be impeded in the future due to the lack of investment in infrastructure and transport.