Brazil investing in infrastructure for ag exports

Even though Brazil seems to be doing well as a producer and exporter of agricultural products, infrastructure and transportation issues have been a constant problem for Brazil. But the government recently announced it is going to make a concerted effort to improve the country’s economy with infrastructure and transportation investment.

Brazilian President Dilma Rousseff reportedly announced a $60-billion-plus investment package to enhance the country's inferior road and rail systems. Serious transportation bottlenecks continue to hurt the economy from the major cities’ streets and highways to export seaports to far-flung dirt roads leading from agricultural production centers to population centers.

One hope is that more agricultural products can reach export seaports in a timely manner and the improved infrastructure will make the country more competitive to grab import/export business from nations such as the U.S.  

“The $60 billion project includes adding 6,200 miles of rail track and building or widening 4,660 miles of federal highways. The government is expected to soon announce other projects aimed at airports, ports, water transportation, and any other areas where serious deficiencies are hobbling the country's growth,” wrote Joseph O’Reilly in a recent “Global Logistics” column on Inboundlogistics.com.

He continued by writing, “Brazil's economy has performed well during the past decade, and has been largely unaffected by the global economic crisis that swept across the United States and is now plaguing Europe. But long-term growth expectations are muted by current transportation and logistics obstacles. For example, this recent stimulus is projected to alleviate bottlenecks that make it challenging to move large volumes of natural resources from far-flung fields and mines to foreign markets—commodity trade vital to important export sectors.”

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