The Brazilian port infrastructure attractiveness for private investors

Port reform is a result of the action of three driving forces. First, technology from the shipping industry and the increasing port competition put pressure on ports to increase productivity as well as investments. The second force is related to the acknowledgement of financial and operational benefits of private participation in developing infrastructure in a scenario of public budget constraints. The third force is associated to the emergence of global terminal operators mounted on capital and know-how. Together, the driving forces have led port reform towards a lower-state-presence system around the world. Maritime transport chain is a highly globalized industry and its drivers of change have affected Brazil. However, the investments required to follow the market have not come in the same speed. In addition, after the end of the commodities price spree, the Brazilian infrastructure inefficiency puts extra pressure on the producers’ margin. Specialists suggest that investments to improve the Brazilian infrastructure are an opportunity to unlock growth. Besides public budget constraints, the Brazilian government have already proved itself inapt to conduct infrastructure projects after several unsuccessful attempts. The private know-how and money are crucial to get Brazil growing again. Hence, we investigated the conditions that should be fulfilled in order to enhance private investment in the Brazilian port infrastructure. Counting on literature, case studies and expert interviews, this research found that the Brazilian policy makers should act toward creating political stability, a clear regulatory framework and a friendly business environment to attract private investors in the long-term. For the short- and mid-term, presenting a clear and public transport infrastructure master plan indicating the government priorities as well as implementing a deeper port reform aiming at reducing the political interference in the port infrastructure are policies that could result in higher flow of private investments.