Silva win could benefit highway concessionaires - report

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Tuesday, September 23, 2014

A win for Marina Silva in Brazil's presidential election could be good news for the country's highway concessionaires, according to a study conducted by investment bank Natixis

Motorway traffic in Brazil, Natixis said, is closely connected to the economic climate.

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In the case of Brazil, heavy goods vehicle traffic is significantly more sensitive to economic conditions than light vehicles. Currently, heavy goods vehicles account for over 35% of the country's traffic mix on average.

In the case of a Silva win, medium-term economic growth – from 2016 onwards – looks slightly brighter, according to the report.

"While we expect a narrow contest, a victory for Marina Silva is likely to create market opportunities," the report said.

Natixis added, however, that it did not expect a large impact as the uptick in heavy vehicles could be offset by a negative impact on light vehicle traffic influenced by a reduction in support measures for the automotive sector and higher fuel prices.

LATEST POLLS

Currently, polls show that incumbent President Dilma Rousseff (PT party) and Silva (PSB party) are in a technical tie in the second round of the country's October elections.

In the first round (October 5), support for Rousseff looks to be 36%, Silva 33%, and Neves (PSDB) 15%. In a second round runoff, Silva has 47% support, while Rousseff has 43%. For more detailed information, visit this page.

BNamericas will host its 5th South America Infrastructure Summit in Colombia on October 22-23.