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Brazil to Privatize More Railways, Airports for Grain Shipping

Adalberto Vasconcelos, the head of Brazil’s PPI government program designed to attract private investment into the country, announced that the government is planning on privatizing more railroads and airports in the south for greater movement of grain.

Twenty airports will be auctioned on March 15 in three regional blocs, with the goal of improving travel across the country for the farming, oil, and tourism industries. Included in the auction will be the Curitiba airport, however, the Congonhas airport in Sao Paulo and Santos Dumont airport in Rio de Janeiro will not be included.

In support of the government’s plan to reduce reliance on road transport for the moving of cargo including grain, Brazil plans to build more railways and have current operators planning investment in expansion when signing their renewal of concessions. Furthermore, during this year, or by early 2020, the Ferrograo and FIOL railways projects serving the central grain belt will be ready for bidding. By 2025, the country is aiming to double the cargo moved by rail from 15 percent to 31 percent.

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