Brazil to partially privatize five airports

Discussion in 'Airports' started by jbcarioca, Apr 27, 2011.  |  Print Topic

  1. jbcarioca
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    jbcarioca Gold Member

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    Reported today in Brazilian papers and the WSJ, which is quoted here:
    SÃO PAULO—Brazil's government is planning to hand over the country's five largest airports to the private sector through concession agreements, in an effort to accelerate upgrades ahead of two major international events, Brazilian presidential Chief of Staff Antonio Palocci said Tuesday.
    The operations and expansion of Brazilian airports have become a key issue in the runup to the 2014 soccer World Cup, spread among 12 Brazilian cities, and the 2016 Olympic Games, to be held in Rio de Janeiro. There are growing concerns that the airport infrastructure won't be ready to deal with the expected influx of visitors.
    The government has approved plans to tender concessions for private sector companies to manage two airports in São Paulo state and one in Brasilia, Mr. Palocci said in a speech in Brasilia to the national economic and development council, which is led by President Dilma Rousseff.
    "We want to combine the urgency of the works with public and private investments," Mr. Palocci said.
    The government plans to issue licenses for services at the international airport in the city of São Paulo, along with the Viracopos airport in Campinas, about 100 kilometers north, and Brasilia's airport. Palocci didn't say what kind of model the government will adopt for those airports, such as if the licensees will own or just operate the terminals.
    The government is also studying how to offer concessions for airports in Rio de Janeiro and Belo Horizonte, he said.
    The government wants to pick up the pace of investments not only to meet demand during the sporting events, but to ensure that capacity meets the country's air traffic needs.

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    Brazil's President Dilma Rousseff .


    Brazil needs to invest 25 billion to 34 billion Brazilian reals ($16 billion to $21.7 billion) over the 20 years in order to bring capacity in line with future demand, said Paula Faria, organizer of the first airport infrastructure expo in Sao Paulo, happening this week. Current capacity of 130 million passengers needs to more than double, to 310 million during the next two decades, to match air traffic demand growth of as much as 7% a year, she said.
    The government had announced plans to auction off rights to build an airport to serve the city of Natal. Though authorization to auction the São Goncalo do Amarante airport was signed by the previous president Luiz Inacio Lula da Silva in 2010, the government still hasn't defined a model for the concession. The auction may happen as soon as July, with details of the auction to be determined by May, civil aviation agency Anac said this month.
    According to the government-run Ipea, or the Institute for Applied Economic Research, Brazil isn't investing enough in its airports to sufficiently boost capacity. According to the Ipea report, which was later contested by President Rousseff's ministers, even if Brazil completed airport construction according to planned deadlines, the expansion is still inadequate to serve the influx of people expected to attend the World Cup.
    According to the Ipea, even after planned investments, 10 of 13 airports serving World Cup host cities will be operating above capacity by 2014.
    However, the airports at Campinas and Rio de Janeiro that may be handed over to private developers are among the three that the Ipea said would have adequate capacity. The airport serving the Amazon city of Manaus is the other airport that also will likely operate below capacity during the Cup, the Ipea said.
    sobore and excelsior like this.
  2. Bay Pisco Shark
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    Bay Pisco Shark Gold Member

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    I'm sure that Brazil can see what sort of relatively efficient, pleasant, and functional operations exist @ SCL and LIM (and probably the regional expanding airports in Chile, too). Realistically, I don't know how much they can do prior to 2014. GRU would have to be instantly vaporized today, with no ongoing ops, for any chance of having a non-embarrassing airport open by 2014.
    jbcarioca likes this.

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