To reach a minimum necessary level, Brazil would need to invest no less than US$ 300 billion in its road network over the next 15 years. The projection is from the study “Road Infrastructure in Brazil”, prepared by Bain & Company and published by Datagro.
This investment should be focused on the construction of 20 thousand kilometers of highways, increasing the country's density to 4.2 km for every thousand km² of territory. This would connect 22 capitals and five commercial borders. In the last three years, Brazil has built around three thousand kilometers of highways – a density of 1.7 km for every thousand km² of road territory.
To give you an idea of the gap, this number is six times smaller than that of the United States (10.6 km per thousand km²), which is one of Brazil's biggest competitors in agribusiness. It is also far below China, which has 10.9 km per thousand km² of territory.
“To a large extent, this depends on concessions, as locations with higher GDP per capita and corridors with toll potential represent more than 70% of the proposed network. And in other regions, we believe that Public-Private Partnerships (PPPs) represent an excellent alternative that should be applied mainly to the North of the country”, highlights Fernando Martins, author of the study.
Source: Agrolink
