Paving and infrastructure market will resume grow in 2012

Next year is expected to be a milestone for the road pavement and infrastructure market in Brazil. Besides the demands that would have come true if 2011 hadn’t been an atypical year, 2012 will come with the mission of ‘making up for the losses’. According to Engineer Guilherme Ramos, Director of Brazil Road Expo, several factors contributed to a halted market this year. “Anyway, it’s the same market that has shown a strong tendency to grow, considering the high adhesion of companies, also from abroad, as exhibitors at Brazil Road Expo 2012”, he explains.
“The changes that have occurred in the Ministry of Transport and more specifically in DNIT (Brazilian Department of Transport Infrastructure) left many contracts in suspense, impacting the schedules of several constructions and consequently the financial turnover of the sector”, recalls the executive, highlighting that now, with upcoming events such as 2014 World Cup and 2016 Olympic Games, there’s no more time for other periods of halted growth.
According to him, another factor that affected the market was the international economic crisis, particularly in the United States and some European countries, which caused some companies to postpone their investments. Although such revision of investment plans didn’t make the federal government exclude any scheduled construction, programs such as PAC (Growth Acceleration Program), have been decelerated.
The results of the 15th 2011 CNT Road Study, published in late October 2011, show this reality. Despite the increased percentage of roads considered good and excellent and the reduced percentage of roads classified as tolerable, bad or terrible, the variation observed from 2010 to 2011 was much lower than the variation from the previous study.
In 2009-2010, the number of “Excellent” and “Good” roads increased from 31 to 41.2%, a positive variation of almost 10 percentage points. In contrast, in 2010-2011, these roads increased from 41.2% to 42.6%, a variation of less than 1.5%.
An inversely proportional variation was observed in the percentage of roads with problems, i.e., that were classified as “tolerable/deficient, bad or terrible”. From 69% in 2009, the rate reduced to 58.8% in 2010, a variation of 10.2%. From 2010 to 2011, the numbers continued showing better preservation and increased investments in roads, but now with a smaller variation: 1.4%, from 58.8% (2010) to 57.4% (2011).
Increasing demand
It’s never too late to remember the important role of roads to freight and passenger transport and integration. Despite such importance and increasing investments made recently, much still needs to be done.
According to the data from the latest SNV (Brazilian Transport Infrastructure System) published by DNIT in August 2011, Brazil has today 1,581,104 km of roads, but only 213,909 km of these length are paved, corresponding to 13.5% of the total road system, and more than 15,000 km are concession roads.
In other words, besides the 53,237 km of paved roads that, according to the CNT study, need some intervention, Brazil still has 1,367,195 km to be paved. “Not to mention the pavement and infrastructure works required in cities, especially in those where the World Cup games will be held or will have large infrastructure projects such as hydroelectric power plants, ports, airports, etc.”, concludes Guilherme Ramos.
More about the CNT Study
The results of the 15th 2011 CNT Road Study were published on October 26, in the head office of CNT (Brazilian Transport Confederation) in Brasília (DF). In this study edition, 92,747 km of roads were evaluated, corresponding to 100% of the paved federal road system, the main paved state roads and concession roads. This study analyzed 1,802 km more than the previous study.
The purpose of this study is to evaluate the conditions of Brazilian paved roads, according to aspects that are perceptible to users, identifying the road conditions in terms of pavement, signaling and geometry, which affect the user’s comfort and safety. The results are presented by type of management (public or concession), by type of road (federal or state), by region and by Federation unit.
The study also detailed the differences observed between the roads managed by the government and the roads managed by concessionaires. Regarding the concession roads (15,374 km), 48% were classified as excellent, 38.9% as good, 12% as tolerable, 1.1% as bad and none was considered terrible.
In contrast, regarding the roads of public management (77,373 km), only 5.6% were classified as excellent, 28.2% as good, 34.2% as tolerable, 21.5% as bad and 10.5% as terrible.
To see all information of this study, visit:
Brazil Road Expo (2nd Edition)
April 2nd to 4th, 2012
Exhibition: 1 pm – 8 pm
Congress: 9 am – 6 pm
Expo Center Norte – Pavilhão Azul – São Paulo/SP
Source: Brazil Road Expo News Room