Infrastructure Remains a Concern in Brazil Ahead of Mega-Events

Ahead of the 2014 World Cup and the 2016 Summer Olympics, infrastructure concerns are rapidly increasing in Brazil.

President-elect Dilma Rousseff has pledged to rebuild and revitalize airports, roads, ports, railways and power plants as part of efforts to improve infrastructure. Her administration may create an agency or secretariat for aerospace issues, Valor Economico newspaper reported Nov. 23.

Such a plan “makes sense,” Rosangela Ribeiro, an analyst at brokerage SLW Corretora said in a phone interview from Sao Paulo. “We have a big infrastructure problem, and this jeopardizes the flights. I think it can have a positive result.”

Rio Must Act to Avoid Airport `Disaster' Before World Cup, Governor Says
Bloomberg
December 17, 2010

Brazil's World Cup Delays

Delays are plaguing Brazil's 12 World Cup host cities, including Rio which is also preparing for the 2016 Olympics. The delays have raised doubts in some people's minds that the country will be able to pull off these major events.

Practically all the works which were to have been carried out starting in May in the 12 venues across Brazil for the football tournament have run into delays, and the December 2012 deadline for completion is looking iffy.

Yet that's the date needed because Brazil is also hosting FIFA's Confederation Cup in 2013.

In June this year, just half the 12 Brazilian cities hosting games have started work to get stadiums and infrastructure into shape, triggering a warning from FIFA general secretary Jerome Valcke to get cracking.

Brazil's World Cup preps dogged by doubts, delays
AFP
December 2, 2010

Despite Violence, Games Officials Promise Safety in Brazil

Games officials in Brazil are trying to clam nerves about safety issues during the 2014 World Cup and 2016 Olympics in Rio de Janeiro amid violent attacks in one of the city's most notorious slums.

Brazilian authorities have claimed that recent attacks by drugs gangs are a desperate response at police efforts to take control of their turf in more than a dozen slum areas.

The local organising committee of the Rio Olympics also promised a trouble-free games.

"The Rio 2016 committee has full confidence in the security plans which have been elaborated jointly with the three levels of government (municipal, state and federal) and presented to the International Olympic Committee (IOC)," it said.

Soccer-Brazil says Rio violence will not affect World Cup
Reuters
November 26, 2010

Favela Cleanup Program Spurs Violence in Rio

Violence has erupted in Rio de Janeiro as the state expands on a program to try to clean up the city's crime-riddled favelas. The impact is intended to refresh the city's image ahead of the 2014 World Cup and 2016 Summer Olympics.

Rio authorities say the violence is in reaction to a two-year-old policing project, known as the "pacification" program, to root out organized drug-fueled crime by occupying favelas (or shanty towns). The program involves setting up heavy policing units to reclaim slums from gangs, and authorities say it has "pacified" 13 favelas since its inception.

To supporters it has been a one-of-a-kind success. For skeptics it is smoke and mirrors. The answer generally depends on where you live.

Rash of Rio violence rattles even hardened residents in Brazil's World Cup host city
The Christian Science Monitor
November 24, 2010

Airports a Potential Embarrassment for Brazil

The Brazilian Sports Minister is warning that the country's airport infrastructure will be an embarrassment for the country during the 2014 World Cup and 2016 Summer Olympics in Rio de Janeiro if not improved.

Orlando Silva warned that not enough progress was being made in improving airports in the vast country which depends almost exclusively on air transport for long-distance travel.

"Today, I have a very strong concern about our airports," Silva told reporters during the Soccerex conference.

Brazil's airports a potential embarrassment: minister
Reuters
November 23, 2010

Brazil's Airports Blasted as Unready for Crowds

Brazil's airport infrastructure has been blasted by an official at a major airline association as being unready to host crowds associated with the 2014 World Cup and 2016 Olympics.

The language used by Giovanni Bisignani, CEO of the International Air Transport Association, to describe Brazil's overwhelmed airports at an industry conference Thursday was some of the harshest criticism yet leveled at the nation on the topic.

"Brazil is Latin America's largest and fastest growing economy but air transport infrastructure is a growing disaster," he told industry leaders at a meeting of the Latin American and Caribbean Air Transport Association in Panama. The organization represents 230 airlines around the world.

Air transport group critical of Brazil's airports
November 19, 2010

Banks Offers $11.8 Billion for Sao Paulo-Rio Rail by 2016

Brazil's national development bank, BNDES, has offered to lend nearly $12 billion to help fund a high speed rail link between Rio de Janeiro and Sao Paulo, the country's two biggest cities.

The 30-year loan will pay interest of 6 percent plus another percentage point in fees related to credit risk, state lender BNDES said in a statement. Borrowers will only start paying the loan six months after the expected start of the train service between Sao Paulo and Rio de Janeiro by 2016.

The BNDES funding is equivalent to 60 percent of the estimated 33 billion reais cost of the project. The consortium that will build the railway will be picked in an auction scheduled for Dec. 16, the statement added.

Brazil offers to lend $11.8 bln for high-speed train
Reuters
November 8, 2010

Brazil's Green Building Industry Grows Ahead of 2016 Olympics

The 2016 Olympics in Rio de Janeiro are expected to help boost the green building industry in Brazil.

Global concerns about the impact of arenas and stadiums led the International Olympic Committee to require arenas built for the 2016 games in Rio de Janeiro meet international standards for low carbon emissions and energy efficiency.

This has boosted local interest in developing real estate that with lower environmental impact than existing buildings, a trend that comes as the Brazilian government is carrying out a long-term infrastructure expansion program meant to make its economy more competitive.

Brazil Olympics spurring green construction
Reuters
November 3, 2010

Security the Big Challenge for Rio: IOC Chief

Security and to a lesser degree transportation will be the top two challenges Rio de Janeiro will need to tackle ahead of the 2016 Summer Olympics, according to Jacques Rogge, head of the International Olympic Committee.

“I’m not saying Rio is not equipped (to confront the problem).

On the contrary, but I have to say that the number one issue is security. We are talking about human lives.

“The second main problem, and it’s one that can be applied to all editions of the Games, with a few rare exceptions, is transport.”

Security wil be Rio's biggest Olympic challenge: Rogge
Times
November 1, 2010

Blair Touts Physical and Cultural Legacies of Games on Trip to Brazil

Former British Prime Minister Tony Blair recently met with officials in Brazil to advise the country on its Olympic preparations. He stressed the importance of long-term physical and cultural legacies.

He said one of the most important benefits of hosting major events is not only improving infrastructure and building top sports facilities, but also to encourage the use of sports to aid communities.

"Part of the legacy is about what sport can do to society," he said. "Sport today is far more important that just sport itself. It can be used as a great anti-crime policy, a great health policy."

Blair hopes the London Games will give youngsters the chance to discover sports and learn what it can do to their lives. He added that many of them first learn basic social skills thanks to sports.

Blair to Rio Olympic organizers: Focus on legacy
USA Today
October 26, 2010

Incoming Brazilian President Will Have Hands Full of Sport

As Brazil's presidential election heads into a runoff election, the new head of state will be faced with a number of challenges -- mainly related to the country's hosting of the 2014 World Cup and 2016 Summer Olympics.

Great uncertainties hang over the ambitious plans submitted to FIFA and the International Olympic Committee.

The 2016 Olympic Games will be the first held in South America, and Rio de Janeiro, the host city, will need around $17 billion in public and private funds to stage it, according to official and independent estimates.

Forty percent of that sum will have to be invested in transport, to resolve Rio's chaotic road system and languishing rail network, and to boost the bus fleet and metro system.
Security is also a priority to tame endemic violence. Urban reorganization will have to take place. The number of hotel rooms need to be doubled.

Olympics, World Cup: challenges for Brazil's new president
Agence France Presse
September 28, 2010

The Preparation Challenge for Brazil

As Brazil prepares to host the 2014 World Cup and the 2016 Olympics, much sport-related work is underway. But beyond the fields and venues, the country has major infrastructure, transportation and safety issues to address.

About 60 percent of the sports venues are already completed because Brazil hosted the 2007 Pan American Games and -- with an eye toward capturing the big prize -- built those facilities to Olympics specs.

But billions of dollars of sports-driven projects from port renovation and airport overhauls to the construction of major highways, transit systems, stadiums and an Olympic Village complete with a beach are planned. Besides accommodating the influx of fans, athletes and officials, the goal is to leave a lasting legacy for Brazilians.

Brazil getting extreme makeover in preparation for Olympics
The Miami Herald

Infrastructure Brazil's Limiting Factor for Foreign Investment

Infrastructure tops the list of concerns for business people considering investing in Brazil, according to a new report. Transportation is an especially sore spot for the country as it prepares to host the 2014 World Cup and the 2016 Summer Olympics.

This is an excerpt of a new report from UK-based bank HSBC, Brazil unbound: How investors see Brazil and Brazil sees the World.

In our survey, nearly one half of respondents (49%) point to “low standard or costly infrastructure including telephones, transport networks and utilities” as the main operational obstacle, far more than selected corruption, poor governance (34 percent) or skills shortages (32 percent), the state of transport infrastructure is particularly dire. In spite of some improvement in logistics, freight depends on costly road haulage; there are few railroads; the potential for waterways remains largely unexplored; and ports and airports are congested. This can add one quarter or more to the cost of getting goods to market, say investors.

Investing in infrastructure has been at the heart of President Luiz Inácio Lula da Silva’s growth program (the so-called PAC, launched in 2007), but progress has been limited. Fewer than half of the targets for 2010 have been met (with much of the proposed financing going to first-time home owners, rather than into physical infrastructure). High public spending commitments are crowding out the paltry 1 percent of GDP that is proposed for investment in infrastructure, while limited private sector investment in transport will not make up the shortfall.

Brazil: Shaky Infrastructure
Latin Business Chronicle
August 2, 2010

Airport Capacity a Concern in Brazil Ahead of 2014

A new report warns that Brazil's airport capacity is too low to handle the expected 146 million travelers entering the country by 2014. Airport expansion is one of the priorities of the government ahead of the 2014 World Cup and the 2016 Summer Olympics in Rio de Janeiro.

For years, infrastructure bottlenecks have been one of Brazil's biggest problems as growing auto sales and airline travel, along with a furious expansion in commodities industries, have put strains on ports, highways and airports.

Brazil is already under fire for being behind on construction of stadiums and other World Cup infrastructure.

A report by the consulting firm McKinsey and Co said at the close of 2009, seven of Brazil's 20 principal airports were struggling with overcrowding in both passenger areas and plane berths that frequently led to delays or canceled flights.

Brazil airport capacity lags as World Cup looms
Reuters via Fox News
July 27, 2010

Favela Clearance and Renovation Planned in Rio

Rio de Janeiro Mayor Eduardo Paes has announced a broad plan to clear and clean up some of the city's favelas. The dirt road slums would be replaced with paved roads, properly built homes connected to water and electricity -- a project expected to take roughly 10 years.

The plan would affect over 260,000 households and would cost over $4.5bn (£2.9bn), Rio Mayor Eduardo Paes said.

Hundreds of Rio's favelas will be re-built and 123 of the most "at risk" slums will be torn down.

Approximately 13,000 families in the 123 areas to be cleared would be relocated, Mr Paes said.

Rio plans to clear slums ahead of 2016 Olympic Games
BBC
July 27, 2010

Rio Rebounds

Ahead of the World Cup and the Olympics, Rio de Janeiro is seeing increased attention from international investors, especially in the shipbuilding, oil and steel industries.

The governor, Sergio Cabral, forecasts the state of Rio will need as much as $US90 billion ($102 billion) in investment until 2013 for the expansion of the shipbuilding, iron, steel and nuclear power industries, led by projects from the billionaire Eike Batista.

Oil producers and mining companies helped double state exports in the first five months of the year, a growth rate three times faster than the nation as a whole.

''It's in the midst of a major transformation,'' said Mr Palmer, Gartmore's head of global developing markets. ''Rio has come back into the fold because of the Olympics and the development of the oil and gas industry.''

Investors go to Rio as opportunities flourish
Sydney Morning Herald
July 17, 2010

Rio's Stadium Faces Years-Long Closure for Renovation

Rio de Janeiro's Maracana Stadium will close for nearly 2 and a half years for renovations ahead of the 2014 World Cup and 2016 Olympics. Its capacity will be slashed from about 175,000 to about 86,000. [Note: an earlier version of this post indicated that the seating would be reduced to 56,000, which, from what I can tell, is incorrect. Documents from Brazil's 2007 inspection report indicate the stadium will hold roughly 86,000. -NB 7/19/10]

To prepare for Maracana's starring role when Brazil plays host to the 2014 World Cup and 2016 Olympics, the International Olympic Committee and FIFA want a stadium with fewer seats and more exits. The new Maracana also will be the venue for the Opening and Closing Ceremonies at the Olympics.

The stadium will be closed for about 2 ½ years, but the renovation must be finished before Brazil plays host to the FIFA Confederations Cup in 2013.

Brazilian icon faces makeover
The Miami Herald
July 15, 2010