Sunday, Sep 23, 2018
Infrastructure | South America | Brazil

Fast track to the future

7 years ago

Brazil’s ambitious North-South Railway will make Goiás a natural logistical hub
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Goiás’ strategic location has made it into a major industrial hub and in a bid to attract new businesses the Government is constantly investing in the state’s infrastructure

Brazil is undergoing massive transformation in its infrastructure model, and Goiás in particular is recognized as one of the fastest growing states in the country, with the fastest growing industrial sector. The state’s central location in the country and its connectivity with all other areas of Brazil have made it the focal point of booming investments in an attempt to position it as the country’s industrial hub.

Currently, massive projects are being developed to add to Goiás’ already solid infrastructure: one such example is the North-South Railway, which will link the north tip of the country to its southern end. AGETOP, the transport and public works agency responsible for the executing of infrastructure development, is contributing greatly to these developments.

As Jayme Rincón, President of AGETOP, explains: “The progress emanating from the south and southeast and arriving in the north and northeast is inevitably channeled through Goiás, which represents an axis, a gateway to different regions in the country. We are currently benefitting from this strategic geographic position.”

“We are concluding the bidding process for the reconstruction of OVER 2000 kilometers of roadS. The roadworks being carried out here are the biggest in the country.”

Jayme Rincón,
President of AGETOP

On AGETOP’s participation in the completion of the North-South Railway, Mr. Rincón adds: “We are also putting together a project for next year, together with BNDES (Brazilian Development Bank), for the interconnection of branch North-South Railway lines to the main production and distribution centers. These projects will allow the state’s railway and highway networks to become integrated.”

Investments will include expenditures of R$1.8 billion on reconstruction, R$1.2 billion on construction, and R$600,000 on the integration of railways and logistics platforms.

Foreign investors have shown interest in participation. For this purpose, and in an attempt to attract foreign investment that would allow for longer-term contracts, public-private partnerships (PPPs) were developed. “This partnership works in the following way: they provide the funds for investment while we deduct this from future taxes they would have paid to the state,” says Mr. Rincón.

Goiás has an extensive road network, and in view of upcoming major sporting events to take place in Brazil, with heavy presence in and around Goiás, expansion projects are improving the road infrastructure. AGETOP is also investing in these new projects.
“We are concluding the bidding process for the reconstruction of 2,081km [1,293 miles] of road. The roadworks being carried out here are the biggest in the country. Next year, we will rebuild another 2,000km. We are also concluding bidding for a totally innovative project aimed at maintaining the network,” says Mr. Rincón.

To date, Brazil has 2,115 miles of federal highways, 12,185 miles of state roads and 40,195 miles of country roads, totaling 54,495 miles of highways. At the current speed of development, Goiás is expected to have the best roads in the country within four years.
Roads are being developed in such a way so as to suit their usage, and even tourists who will be attending the upcoming FIFA World Cup in 2014 are being taken into account. “Paving occurs in such a way as to suit each highway, taking into account the number and types of vehicles circulating. Roads designed for tourists, for instance, do not need to have the same sort of paving as roads used to transport soya produce or livestock,” adds Mr. Rincón.

When detailing the infrastructure currently being prepared for these global events, Mr. Rincón adds, “We are also completing the Center of Excellence, a space which will be devoted to amateur and Olympic sports. In light of the 2016 Olympics to be held in Rio de Janeiro, I have met with the president of the Brazilian Olympic Committee and outlined the project we are undertaking. After Rio de Janeiro, we will have the biggest training center for athletes in Brazil. It is a very ambitious project and we will offer athletes from other states the chance to prepare themselves for the Olympics.”

With the state’s natural logistical competitive advantages and the projects currently being development, it is not a wonder that the world is looking to invest in Goiás.




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