Study: Brazil needs US$14bn to repair highways

Brazil needs to invest 72.3bn reais (US$14bn) to restore highways that are in poor condition, according to a study carried out by national transport confederation CNT.

Currently, 66% of the paved road network evaluated by CNT is in need of repair, and is considered "in mediocre, bad or very bad condition." The rest are considered "excellent or good," the study shows. 

In a similar survey a year ago, 61.8% of highways were considered to be in mediocre, bad or very bad condition.

The CNT survey evaluated the entire paved network of federal highways and the main state routes, comprising a total of 110,333km, with 87,095km under government administration and 23,238km operated by private sector companies. 

The highways in poor condition are more concentrated in those administered by the public sector and generate an increase in operating costs of 33.1%, impacting on Brazil's competitiveness and the price of products, according to CNT.

Public investments in highways have been dropping in recent years. In 2022, the government investment 5.79bn reais in the area, down from 6.06bn reais in 2021.

"In 2022, it is estimated that there will be unnecessary consumption of 1.1bn liters of diesel due to the poor quality of the road network in the country. This waste will cost 4.89bn reais for transportation firms," CNT said in a release.

In recent years, highway concession auctions have advanced but the interest of private sector companies is more focused on routes with heavy traffic, while highways in more remote regions need greater government attention.