Transport logistics, sanitation investments seen hitting US$165bn by 2015

Tuesday, July 5, 2011

Investments in Brazil's transport logistics and basic sanitation sectors are forecast to hit some 257bn reais (US$165bn) by 2015, according to a survey by infrastructure and basic industries association Abdib.

Investment in transport and logistics should reach 172bn reais and sanitation will receive some 85bn reais, Abdib said in a report.

While the numbers look promising for the next few years, the country needs to overcome obstacles such as long-term financing conditions, time-consuming preparatory processes for projects and the availability of skilled labor, according to Abdib president Paulo Godoy.

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Overall, Abdib forecasts that infrastructure investments in Brazil will total 922bn reais up to 2015. Of the total, 142bn should go towards electric energy, 425bn reais for oil and gas and 98.5bn reais for telecommunications.

Considering public and private resources, Brazil has been experiencing an upward trend in infrastructure investments over the past few years.

While 60bn reais were invested in 2003, this improved to 99bn reais in 2007. In 2010, total investment in infrastructure came to 147bn reais.