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

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

Brazilian Cities Allowed Higher Debt Ahead of 2014 World Cup

Brazilian President Luiz Inacio Lula da Silva has announced that his government will invest more than $3.5 billion in port upgrades ahead of the 2014 World Cup, and that the country's 12 host cities will be allowed to rack up higher levels of debt to make sure they are prepared.

During the ceremony to launch the decree, the president announced that 3.545 billion will be allocated to upgrade airports and ports in the twelve cities hosting the soccer tournament in 2014.

"Things are going very quickly," said Lula, countering criticism of his government for delays in works, which he attributed to the "folly" of people who have no patience with the ritual required to put projects into practice.

Brazil tighten steps for 2014 World Cup, 2016 Olympics
People's Daily Online
July 20, 2010

Calls to Privatize South African Airways

Officials are calling for the privatization of South African Airways, which is funded by the national government. Leaders from the Democratic Alliance are pushing for privatization in an effort to reduce costs to the state and improve efficiency.

The official opposition on Tuesday charged that the monopoly the state-owned airlines held was "not healthy" for private sector competition and was costing the state too much.

The government in 2008 bailed out SAA to the tune of R1,6-billion, and the airline company told Parliament in June that it might need another injection of R1,5bn in 2009.

SAA 'costing state too much'
The Star
August 5, 2009