SUMMARY -
By means of this article, we would like to present data of some more recent videos and various trends for safe and profitable investments in the imaginary perimeter of our "THEORETICAL PROJECT NEW BRAZIL 2030". The great and progressive development PLUS the many opportunities to invest with low risks will come with the sharp increase in food consumption and other demands and by a continued development in all municipalities – from Central Brazil to the Northeastern States.
This development is already happening, representing opportunities for profit-oriented investors – opportunities especially extending after the completion of the implementation of new modes of much faster and efficient transport - in fast railway and deep ports especially toward Europe, USA and especially to Asia – over many others projects up to structural, energy and minerals works, some in the form of temporary concessions, other essentially private or some on the PPP Public private Partnerships model.
At this moment, Brazil still has about 70% of its territory to develop properly, most being in the imaginary perimeter, whose base comprises the sloping parallel between Vitória City - ES (coordinated 20:17 o S and 40:14 W) plus Montes Claros - MG (16:44 o S and 43:50 W) plus Uberlândia - MG (18:53 o S more 48:17 W) plus Cuiaba City - MT (15:36o S and 56:05 W) going up above to the Atlantic ocean at the east, northeast and north regions over also above to the borders of the west and northwest regions.
In 2008, about 80% of the Brazilian people still lived within 200 km of ocean waterfront, whereas in India 70% of people lived and produced inside; in China, 50% and 26% in United States. Worse is that in Brazil, about 70% of raw materials, energy, more grains, processed foods (except sugar and some of the grains and processed meats) and wood are still produced inside.
Thus, the Midwest, North and Northeast Regions - albeit with giant areas, sparsely populated areas but with high potential to invest and to consume much more - still have a huge potential for development
Very Recently, Prof. Aswath Damodaran of the CFA Institute recommended to invest in Brazil.
https://blogs.cfainstitute.org/investor/2016/06/13/aswath-damodaran-on-how-to-invest-internationally/
Please also read the ZHAW School of Management and Law (SML):
https://update.sml.zhaw.ch/brazil-in-crisis-time-to-invest/
ARTICLE -
Evidently, since we are a new country, with a still low overall demand and very far from the main world centers of consumption, especially by the severe and giant barrier of the Andes in the west and the lack of sufficient resources to build and operate modern, fast, reliable and cheap transport, Brazil still struggles to enter competitively on the world market.
All this occurs even with Brazil being, worldwide, the country with the largest amount of drinking water, more arable land, more potential for irrigation, without glaciers, blizzards and deserts, most reliable weather and certainly the country with current the most severe environmental care. Also, we have very high oil, mineral and timber (grown, certified and legal) potentials, all for lower costs and higher efficiency compared to the competitors and perhaps the best production, extraction and processing technologies in the world.
Back in 2012, the total GDP of Brazil reached US $ 2.22 trillion, as follows:
1) 55.4% stemmed from the rich and very inhabited the Southeast Region (industrial processors and its machinery; very oil and natural gas; many minerals; too much sugar and ethanol; much coffee and milk and good level of general meat productions; good tourism);
2) 16.4% comes from the median in wealth and sparsely populated South Region (grain; woods; grapes; agr. Machinery; poultry and pork meats and good tourism);
3) 13.6% from the very large Northeast Region (already good level of oil; many existing and very high potential minerals to exploring civilly; cotton; fruit and pulps for domestic and export market; some sugar cane and ethanol; strong tourism);
4) 9.3% only currently comes from the new frontier and very large Midwest Region (most grains, cotton and beef in the country; high potential in minerals; timber and some sugar cane and ethanol);
5) Only 5.4% comes from the giant North Region (small amounts of oil; lots of natural gas; legally processed timber comes from certified wood in the Amazon rainforest including produced by new “Sustainable Forest Management” technique; many minerals exploring civilly, and fruit pulps for domestic and export market; bovine animals for export; good tourism level goes to the rainforest more giant deep rivers).
In terms of "per capita" GDP in 2012, the average personal income in Brazil was only Us $ 14,793 / inhabitant / year, being Us $ 19,666 in the Southeast Region; Us $ 18,376 in the Center-West Region; Us $ 16,445 in the South Region, but reducing a lot to Us $ 9,467 in the North Region and only to Us $ 7,224 in the Northeast Region. Thus, a person in the Southeast Region had annual income almost three times higher than in the Northeast. However, in 2000, the distribution of income was much worse than in 2012.
In 2014, according to the World Bank, the average Brazilian "per capita" GDP reduced to US $ 11,727 / inhabitant / year, however, it’s already about four times more than the US $ 2,811 / capita / year in 2002. Although comparatively the World Bank in 2014, the "per capita" GDP in the USA reached Us $ 54,629 / inhabitant / year, which is almost five times more than in Brazil. In Germany, it reached Us $ 47,774 / person / year; in Japan, Us $ 36,194 and China reached Us $ 7,590 / capita / year (only 35% less than in Brazil). Yet comparatively, in 2014 or 2015, the population in China reached 1,372.5 million; in USA to 321.9 million; in Brazil were 205.0 million people; in Japan, 126.8 million and in Germany were only 81.2 million people.
No doubt, reliable investments in new and modern internal logistics, with the accompanying increase in consumption and investments, will change Brazil for the better, leading to high profits for its investors and all with low risk. It will accompany the expected expansion in Brazilian "per capita" income, of higher domestic demand and increased exportation.
What matters most and surprised the world business is that at the end of those new railways and those new ports in the North and Northeast Regions there are new regions of global competitiveness in strategic minerals, grains, processed foods, juice / pulp, timber, ethanol, biodiesel, nutraceuticals and even oil and gas.
Towards the north and northeast directions, as well as direct line to the USA, Canada and European countries, they have easy access via the new Panama Canal (opening now on June 26, 2016, allowing passing ships to Asia with the double previous capacity and up to 13,000 containers) and in the future by the super deep channel of Nicaragua, currently under construction by the Chinese and to be finished in about 10 years. From the Panama Canal to Hong Kong it is a distance of 16,250 km and the super ports of Singapore and Shanghai have a draft of 30 meters.
See articles in Portuguese at:
http://economia.uol.com.br/noticias/efe/2016/03/23/ampliacao-do-canal-do-panama-sera-inaugurada-em-26-de-junho.htm
Also worth seeing short films in Portuguese and Spanish at:
https://www.youtube.com/watch?v=rZkotTa9-Uo
https://www.youtube.com/watch?v=LTDsAxnQzco
Also see map of the future Nicaragua Canal more a strategic article in Portuguese:
https://www.epochtimes.com.br/canal-nicaragua-peca-chave-plano-expansao-china/#.V0dmh1QrLIU
Besides that It is always good to remember that the super giant Asian railway the TAR - Trans-Asian Railway with 14,000 km began construction in 2009 and will be fully completed, also in the inner loop of all Asia and north of Uzbekistan, by 2025.
See map of TAR in English at:
http://www.unescap.org/sites/default/files/TAR%20map_GIS.pdf).
On the other hand, the Turkish Mersin semi-deep port as well as the Isdemir / Iskenderum deep port are near the Suez Canal (only for smaller vessels). Also they are at the tail end of Turkish railway lines (silk rail) for access to new superfast chinese railroad TAR "Trans -Asian Railway "and cutting most of Asia, reaching giant Chinese ports and the our very competitor but also very demanding southeast Asia.
The Trans-Asian is currently under construction and contains part of the so-called Silk Railroad, launched in 2014 and with 80% Chinese resources ("Silk RailRoad Economic Belt" and "Maritime Silk Road").
See map of the future and fast "Chinese Silk Road", in:
http://www.cimentoitambe.com.br/cinturao-economico-ligara-china-a-europa/
See short movies in English and Arabic:
https://www.youtube.com/watch?v=LM8N717U7d0
https://www.youtube.com/watch?v=SLCuIw0dFhM
https://en.wikipedia.org/wiki/Trans-Asian_Railway
http://en.yibada.com/articles/77813/20151026/china-confident-completing-eurasian-trans-asian-railway.htm
Thus Brazil, especially the Central-North and Northeast Regions need to prepare from now on to embark on the future – in a much more competitive and faster way than the current ports in Central-South Region.
Currently, from the Itaqui-MA Port to Chinese ports, via South Africa, there are about 22,000 km and at least 35 days of round-trip giant ships.
See article in Portuguese about the Port of Itaqui in:
http://economia.uol.com.br/noticias/reuters/2015/09/23/especial-porto-de-itaqui-ganha-relevancia-no-agronegocio-antecipa-metas-e-atrai-investidor.htm
Thus, in the future, besides the TAR railway and in north-east direction until all the Middle East plus north and north-east of Africa as well as throughout Asia, we have a new direct Brazilian sea route, cheap and suited for giant ships between our very deep ports of Itaqui, Espadarte, future Colares and even Tubarão (as well as the deep ports of Barcarena, Suape, Pecém and future Ilheus) to the Turkish industrial ports in Mersin (draft of 14 meters) and Isdemir / Iskenderun (two berths with a draft of 17 meters, about 2 meters more than our current port of Suape) and from there, by future chinese Railway Silk - see below - to the Middle East, Africa and throughout Asia.
From Brazilian ports to the Turkish ports distances of only 10,500 kilometers have to be overcome, via the Mediterranean Sea, which would reduce the total route, including rail stretch to the eastern Chinese ports, by around 5000 kilometers. So coming soon we have a direct corridor up and fast to giant ships would be "ore-oil", "roll-on / roll-off" and containers giant ships for up to 25,000 ud (in future), including trend for strong grain transportation, meals, oil, brown sugar, all frozen meets, juices and timbers occur only by containers. Even part of the ores is already being transported in containers in order to take advantage of the return shipping.
The largest current container ship, the CMA / CGM "Benjamin Franklin", is 20 stories high and can carry more than 18,000 containers. Its engine occupies space of 23 meters and it has 21 knots of thrust, equivalent to 11 Boeing 747-400 engines (3,000 Knewton).
See photos and short movie of this giant ship:
http://engenhariae.com.br/curiosidades/conheca-o-maior-navio-cargueiro-do-mundo/
Let us now see some recent good news about the works in progress in Brazil and its high potential after another new deepwater port of the Ilheus City - BA (in final design after to get the environmental release) over a new railway, the FIOL Rail (45% of all already ready) as the following link in Portuguese (we have diagnosed, following the evolution, visited and photographed some of these works to our customers). Both – deep port more strategic future rail - must be built and operated by specialized Chinese companies.
http://www.revistaferroviaria.com.br/index.asp?InCdNewsletter=8202&InCdMateria=24665&InCdEditoria=2
This future horizontal East-West Railway (FIOL), broad gauge and with coordinated between 14,5o S to 13,2o S - passing through a region with high grain production, cotton, food and many mineral deposits already in production - will join with the current North South Railway (the FNS coming from the far and very deep Itaqui Port on North on (2:34 S more 44:22 W) in the Uruaçu City, State of GO (14:31 S more 49:08 W) and its already about 60% complete between the Ilheus future deep port in State of BA (14:31 S more 39:0200 W) to the Barreiras City – BA (12:08 S more 44:58 W), being physical works have arrived in Sao Desiderio City, Bahia State, very close to Barreiras -BA.
See english and chinese reports:
http://www.sde.ba.gov.br/vs-arquivos/imagens/revista-pdf-8969.pdf
See below recent photos of the long railway bridge - in the beginning of construction to complete in 2018, on the São Francisco River in Bom Jesus da Lapa (BA) - already in the middle of the course of future FIOL East West Railway. This future railway in broad gauge, and already about 60% complete, will connect the future deep port of Ilheus-BA to meet the FNS - North South Rail in Uruaçu-GO. It is almost certain that this FIOL railroad as well more the Ilheus port will be finished (rail) or be built (port) and operated by Chinese construction companies and are in final negotiations with governments.
http://www.verissimofundacoes.com.br/fundacoes/index.php/home/4-obras/81-ponte-ferroviaria-sobre-o-rio-sao-francisco-serra-do-ramalho-bom-jesus-da-lapa-ba.html
In turn the strategic and almost ready the FNS North-South Railway is vertical, broad gauge - so much faster - and will travel in the future 4,155 km from the extreme north Port of Itaqui - MA to the extreme south Port of Rio Grande - RS, that is crossing the North of Brazil's to the South of Country. It is already 98% complete between the super deep North Port of Itaqui - MA to Estrela D'Oeste City in State of SP (20:17 S more 50:23 W), where it joins the current The Vicente Vuolo Railway, former Ferronorte Rail, already fully operational from the Rondonópolis City in heart of State of MT (16:26 S more 54:38 W) to the Port of Santos SP (23:55 S more 46:20 W), yet very strategic and important, but that, being shallow and close to great mountains and their silting it tends to be a exporter industrial port more for import.
The FNS Railway along with the other two soon to be concluded (the FIOL Rail more the Transnordestina Railway), additional to the deep ports located at the end of its rail lines will significantly change the geo-economic and social map of Central-North (Center-West + North grouped regions) and Northeast regions by 2030 (mostly in the theoretical parallel described above Vitória-ES more Montes Claros-MG more Uberlandia-MG more Cuiaba-MT), including some return migration from big cities as São Paulo and Rio de Janeiro. With this, there should be a fast doubling or even tripling of local and regional consumption and others demands.
It is anticipated that nearby cities or up to 300 km of the three railways described herein, especially with grains, foods and timber cargo terminals, mineral deposits, processors or providers and others, should increase between 50% to 300% of its population by 2050, which will require many external or internal investments, particularly in regional partnerships, and this with or without the effects of current investigative and punitive of the named "Jet Wash" and others criminal operations. The local workforce is sufficient and it has been easy training, including in English language. There are already many small colleges over many English language private schools in major cities.
See short movie with end of the FNS Railway works on State of Goias at 2014:
https://www.youtube.com/watch?v=wjp1PWgS2Jk
To complete the part of the extensive and new the FNS North-South Railroad situated on center (half) of country - that is, the physical works and before the signs and rail tests - there are only complete 100 meters from the railway bridge over the rio grande between Iturama City on State of MG and the Ouroeste City on State of SP, being a work in the final phase, but almost secret, because no nationalist and developmentalist Brazil press to release it, on the contrary, trying to hide.
See recent pictures of this strategic bridge at:
http://atribunanaweb.com.br/noticia/maioria-desconhece-construcao-de-ponte-ferroviaria-sobre-rio-grande
Also, see the link below other recent pictures of this same railway bridge, under construction and with only 100 meters to finish in 2017 and will connect quickly and by broad gauge form – by the future FNS North South Railway over the current Railway Vicente Vuolo - the Port of Itaqui-MA to the Port of Santos-SP.
http://www.verissimofundacoes.com.br/fundacoes/index.php/obras/67-ferrovia-norte-sul-iturama-mg.html
Already the Transnordestina Railway - another horizontal / vertical giant rail (as the FIOL), fast, private, highly strategic, almost secret, passing by very poor regions but with many potential sources of numerous minerals - even with lack of resources, is already about 55% complete in its main parts, from inside the PI, PE and CE States to the super deep Suape-PE Port (8:22 S more 34:58 W) and deep Pecem-CE Port (3:32 S more 38:48 W). In those new and still very cheap areas, flat or medium flat and with rainfall above 1000 mm / year, that is, perfect for soybeans, sorghum, cattle and fruit / pulp, also provides significant expansion of grain production, fruit / pulp, meat and other foods. There are also many perfectly irrigable areas, including several cold water geysers (named locally of “jorros”).
At the far end horizontal west point, the construction works on the Transnordestina railyway have arrived already in Itaueira City in the state of Piaui (coordinates 7:28 S and 43:00 W), ie, only 170 km from Eliseu Martins City, in same State and 340 km from Teresina-PI. At the far vertical edge point goes to north, the construction works are already in Senador Pompeu City in State of CE (5:35 S more 39:22 W), about 340 km away from the port of Pecem-CE.
So there's no way back if it comes to Brazil´s development and several more of these railway projects are underway, to be completed by 2020.
In the near future the new Transnordestina will be connected between Eliseu Martins-PI (final stretch of works) to the FNS North-South Railway already in Porto Franco-MA (6:20 S more 47:24 W), linking horizontally and vertically form the main railways of the new Central-North and Northeast to the deep ports above the Tubarão very deep Port (VALE), closer to Vitoria City - ES.
See recent pictures at:
http://cidadesnanet.com/news/municipios/paulistana/transnordestina-trilha-novos-caminhos-para-o-piaui/
Besides those railway projects in implantation, we have some others in its final state for renovation / expansion to be completed by 2025, much via concessions plus a little shallow or even shallow river ports, but very strategically located, as Manaus-AM, Macapa-AP, Miritituba-PA and Santarém-PA all preparing to receive and to send out cargo ships destined towards the new channels of Panama and future Channel of Nicaragua.
Additionally, we will soon have very deep and strategic seaports for mineral fillers, grains, word and others, to be installed in Colares-PA or to expand in Barcarena-PA and in Espadarte/ Curuçá-PA.
We also have 03 other large and strategic railways in fast broad gauge (1.60 m) as below:
1) The first future railway comes from Sinop-MT (local junction with the future FICO Midwest Railroad, as part of the future Bi-Oceanic Railway) to Miritituba-PA (one shallow river port near the port of Santarém-PA). This projected future railway is also referred to as “The grain rail”;
2) The second future rail is an extension of the FNS North South Railway already in Açailândia-PA with approximately 450 km to the end and vey deep port of Barcarena-PA and / or future super deep port of Colares-PA, both near Belém-PA;
In Açailândia City already we have the Carajás Railway (owner to VALE) and recently it has received about 513 km doubled tracks to the super deep port of Itaqui-MA.
Also, the Açailândia City (future big cross rail) is 215 km distant from the Porto Franco-MA by the current FNS - North South Rail, one city where will be the real beginning of the Transnordestina Railroad (in fast works as above described), via 620 km tracks to Eliseu Martins-PI. From there directly and quickly we have more 1,728 km broad gauge tracks (70 % completed) to the deepwater port of Suape-PE, situated on east direction, or to port of Pecém-CE, through and reaching the middle of the course in Salgueiro-PE (future big cross rail and coordinates6: 8:03 S more 39:07 W) and from there 955 km in the north direction to the port of Pecém (stretch rail already 40% complete, with most of the renewal and adaptation of the old narrow-gauge or metric stretch (1.00 m) of the old CFN - Northeast Railway Company changing for broad gauge (1.60 m) of the Transnordestina Rail.
Also it is important to note that Brazil still has 23,489 kilometers of old railways (narrow gauges), currently hardly operational but that intersect in many strategic locations with the new broad gauge railways. Mistakenly, they were all built many years ago in narrow gauge, but which allow transfers to the new railways by broad gauge. Some, like the giant and old the Centro Atlantica Railway, owner VALE, with 7,080 km of narrow gauge is reinforcing the structure and implementing the third track for the route also by broad gauge in most sections. This Rail already carries a lot, including many grains from the Midwest and Southeast Regions to the super deep port of Tubarão (ES) and it passes through the interior of SP, RJ, ES, GO, MG ending in Juazeiro-BA (region of irrigated fruit situated on irrigable banks of the River San Francisco, that is, very high potential for much more investments) so also very close to new the Transnordestina railroad as above.
3) The third future rail is the giant Bi-oceanic Railroad starting in Campos-RJ a big city situated in core of giant wells more northern tip of the giant pre-salt ocean oil wells over oil products processors and providers. Also the Campos City is very close to the new, 100% ready, giant and very deep Açu Port and its mineral’s more industrial, oil wells, oil products and gas, vehicles manufactures and fertilizers processor new zone). From Campos-RJ bound to distant minerals and deep ports of Peru, through future to north direction by the seaside of RJ and ES more to west direction by the interior of MG or BA, GO, MT, RO and AC to arrive in Peru a country rich in phosphate and many strategic minerals to process in Brazil too (from Brazil will come to the Peruvian ports many grains, meats and other processed foods, coffee, sugar, ethanol, wood and mineral of hundreds of future strategic deposits). The best is that this future giant railroad (forecasted 4,400 km) will go through future medium and large cities in the interior of Brazil (local of current and future agribusiness and mining boom, whose external competitiveness should further extend the combination of lower costs and higher sales prices) also with strong and rapid expansion of consumption and other local demands.
See below the new, giant, 100% ready and very deep the Açu Port (owner to Prumo Logistics Company more arabs).
http://www.bnamericas.com/en/news/infrastructure/brazils-prumo-readies-acu-port
More a short movie “Aerial tour of Açu Port”:
https://www.youtube.com/watch?v=L_gEir4AP34
This future Bi-oceanic railway already is called by the Chinese "South America Silk Route", as part of South railway initiatives, also in partnership and taking place in Venezuela and Argentina.
See below article in Portuguese about:
http://www.voltairenet.org/article187790.html
More:
http://www.businessinsider.com/china-plans-to-build-a-3300-mile-railway-across-south-america-2015-6
And:
http://www.courcyint.com/component/k2/item/66135-brazil-peru-big-infrastructure-the-trans-oceanic-railway.html
In fact, according to international consultants and policy analysts, it comes of a big Chinese and Russian geopolitical plan guaranteeing the supply of raw materials and food and others processed items in long-term and much cheaper (without going through the powerful and cartelized trading from USA and Europe that dominate world prices also massacring farmers, cooperatives, providers, transporters and local government), all headed by China (owner of most of the Panama canal over its giant free zone of Colon) plus Russia (already dominant in Nicaragua and its future giant channel in partnership with Chinese), being something also to besiege and to isolate the United States.
To quickly start up those future railways, highly specialized investors and companies from China, Russia and Germany have already demonstrated their interest in building them and operate them on fixed-term regime of concessions. Initially, still in 2017, should start Sinop-MT railway to Miritituba-PA or Santarém-PA (grain rail) plus completion of the FIOL rail from since the railway cross junction in Uruaçu-GO (new Chinese project) or in Figueirópolis-TO (former VALEC project) to super deep port of Ilheus / Aritaguá-BA. In 2018, should start - probably by Chinese investor and companies - the future giant Bi-Oceanic Railroad above from Campos-RJ to the Peruvian ports.
Please see: 2011 - Logistic Infrastructure Scenario in Brazil:
http://www.transportes.gov.br/images/Materiais_Cursos_Palestras/PDF_docs/Logistc_insfrastructure_Brazil.pdf
Also, please, see in link below a complete logistic report 2015 by type more potential for investors (Logistics Investments Program), as reported by Ministry of planning Brazil Government.
http://www.logisticsbrazil.gov.br/
Please download and see too: “Investments in transport infrastructure (2007-2016) in Brazil…”:
http://pt.slideshare.net/AndreDantas3/investments-in-transport-infrastructure-20072016-in-brazil-and-preparations-for-the-world-cup-2014-and-olympic-games-rio-2016
And see also in english:
The BNDES Brazilian Development Bank – Annual Report 2014.
http://www.bndes.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/empresa/RelAnual/ra2014/RA_2014_ing.pdf
More:
http://infrastructurebrasil.investexportbrasil.gov.br/Sites/EstadosUnidos/
And:
http://www.seae.fazenda.gov.br/assuntos/Infraestrutura/infraestrutura-brasil/arquivos/brazilinfrastructure_edicao2_2015.pdf
See more strategic information about in English in our previous articles:
Brazil: "A giant construction site for the future of its people"
By means of this article, we would like to present data of some more recent videos and various trends for safe and profitable investments in the imaginary perimeter of our "THEORETICAL PROJECT NEW BRAZIL 2030". The great and progressive development PLUS the many opportunities to invest with low risks will come with the sharp increase in food consumption and other demands and by a continued development in all municipalities – from Central Brazil to the Northeastern States.
This development is already happening, representing opportunities for profit-oriented investors – opportunities especially extending after the completion of the implementation of new modes of much faster and efficient transport - in fast railway and deep ports especially toward Europe, USA and especially to Asia – over many others projects up to structural, energy and minerals works, some in the form of temporary concessions, other essentially private or some on the PPP Public private Partnerships model.
At this moment, Brazil still has about 70% of its territory to develop properly, most being in the imaginary perimeter, whose base comprises the sloping parallel between Vitória City - ES (coordinated 20:17 o S and 40:14 W) plus Montes Claros - MG (16:44 o S and 43:50 W) plus Uberlândia - MG (18:53 o S more 48:17 W) plus Cuiaba City - MT (15:36o S and 56:05 W) going up above to the Atlantic ocean at the east, northeast and north regions over also above to the borders of the west and northwest regions.
In 2008, about 80% of the Brazilian people still lived within 200 km of ocean waterfront, whereas in India 70% of people lived and produced inside; in China, 50% and 26% in United States. Worse is that in Brazil, about 70% of raw materials, energy, more grains, processed foods (except sugar and some of the grains and processed meats) and wood are still produced inside.
Thus, the Midwest, North and Northeast Regions - albeit with giant areas, sparsely populated areas but with high potential to invest and to consume much more - still have a huge potential for development
Very Recently, Prof. Aswath Damodaran of the CFA Institute recommended to invest in Brazil.
https://blogs.cfainstitute.org/investor/2016/06/13/aswath-damodaran-on-how-to-invest-internationally/
Please also read the ZHAW School of Management and Law (SML):
https://update.sml.zhaw.ch/brazil-in-crisis-time-to-invest/
ARTICLE -
Evidently, since we are a new country, with a still low overall demand and very far from the main world centers of consumption, especially by the severe and giant barrier of the Andes in the west and the lack of sufficient resources to build and operate modern, fast, reliable and cheap transport, Brazil still struggles to enter competitively on the world market.
All this occurs even with Brazil being, worldwide, the country with the largest amount of drinking water, more arable land, more potential for irrigation, without glaciers, blizzards and deserts, most reliable weather and certainly the country with current the most severe environmental care. Also, we have very high oil, mineral and timber (grown, certified and legal) potentials, all for lower costs and higher efficiency compared to the competitors and perhaps the best production, extraction and processing technologies in the world.
Back in 2012, the total GDP of Brazil reached US $ 2.22 trillion, as follows:
1) 55.4% stemmed from the rich and very inhabited the Southeast Region (industrial processors and its machinery; very oil and natural gas; many minerals; too much sugar and ethanol; much coffee and milk and good level of general meat productions; good tourism);
2) 16.4% comes from the median in wealth and sparsely populated South Region (grain; woods; grapes; agr. Machinery; poultry and pork meats and good tourism);
3) 13.6% from the very large Northeast Region (already good level of oil; many existing and very high potential minerals to exploring civilly; cotton; fruit and pulps for domestic and export market; some sugar cane and ethanol; strong tourism);
4) 9.3% only currently comes from the new frontier and very large Midwest Region (most grains, cotton and beef in the country; high potential in minerals; timber and some sugar cane and ethanol);
5) Only 5.4% comes from the giant North Region (small amounts of oil; lots of natural gas; legally processed timber comes from certified wood in the Amazon rainforest including produced by new “Sustainable Forest Management” technique; many minerals exploring civilly, and fruit pulps for domestic and export market; bovine animals for export; good tourism level goes to the rainforest more giant deep rivers).
In terms of "per capita" GDP in 2012, the average personal income in Brazil was only Us $ 14,793 / inhabitant / year, being Us $ 19,666 in the Southeast Region; Us $ 18,376 in the Center-West Region; Us $ 16,445 in the South Region, but reducing a lot to Us $ 9,467 in the North Region and only to Us $ 7,224 in the Northeast Region. Thus, a person in the Southeast Region had annual income almost three times higher than in the Northeast. However, in 2000, the distribution of income was much worse than in 2012.
In 2014, according to the World Bank, the average Brazilian "per capita" GDP reduced to US $ 11,727 / inhabitant / year, however, it’s already about four times more than the US $ 2,811 / capita / year in 2002. Although comparatively the World Bank in 2014, the "per capita" GDP in the USA reached Us $ 54,629 / inhabitant / year, which is almost five times more than in Brazil. In Germany, it reached Us $ 47,774 / person / year; in Japan, Us $ 36,194 and China reached Us $ 7,590 / capita / year (only 35% less than in Brazil). Yet comparatively, in 2014 or 2015, the population in China reached 1,372.5 million; in USA to 321.9 million; in Brazil were 205.0 million people; in Japan, 126.8 million and in Germany were only 81.2 million people.
No doubt, reliable investments in new and modern internal logistics, with the accompanying increase in consumption and investments, will change Brazil for the better, leading to high profits for its investors and all with low risk. It will accompany the expected expansion in Brazilian "per capita" income, of higher domestic demand and increased exportation.
What matters most and surprised the world business is that at the end of those new railways and those new ports in the North and Northeast Regions there are new regions of global competitiveness in strategic minerals, grains, processed foods, juice / pulp, timber, ethanol, biodiesel, nutraceuticals and even oil and gas.
Towards the north and northeast directions, as well as direct line to the USA, Canada and European countries, they have easy access via the new Panama Canal (opening now on June 26, 2016, allowing passing ships to Asia with the double previous capacity and up to 13,000 containers) and in the future by the super deep channel of Nicaragua, currently under construction by the Chinese and to be finished in about 10 years. From the Panama Canal to Hong Kong it is a distance of 16,250 km and the super ports of Singapore and Shanghai have a draft of 30 meters.
See articles in Portuguese at:
http://economia.uol.com.br/noticias/efe/2016/03/23/ampliacao-do-canal-do-panama-sera-inaugurada-em-26-de-junho.htm
Also worth seeing short films in Portuguese and Spanish at:
https://www.youtube.com/watch?v=rZkotTa9-Uo
https://www.youtube.com/watch?v=LTDsAxnQzco
Also see map of the future Nicaragua Canal more a strategic article in Portuguese:
https://www.epochtimes.com.br/canal-nicaragua-peca-chave-plano-expansao-china/#.V0dmh1QrLIU
Besides that It is always good to remember that the super giant Asian railway the TAR - Trans-Asian Railway with 14,000 km began construction in 2009 and will be fully completed, also in the inner loop of all Asia and north of Uzbekistan, by 2025.
See map of TAR in English at:
http://www.unescap.org/sites/default/files/TAR%20map_GIS.pdf).
On the other hand, the Turkish Mersin semi-deep port as well as the Isdemir / Iskenderum deep port are near the Suez Canal (only for smaller vessels). Also they are at the tail end of Turkish railway lines (silk rail) for access to new superfast chinese railroad TAR "Trans -Asian Railway "and cutting most of Asia, reaching giant Chinese ports and the our very competitor but also very demanding southeast Asia.
The Trans-Asian is currently under construction and contains part of the so-called Silk Railroad, launched in 2014 and with 80% Chinese resources ("Silk RailRoad Economic Belt" and "Maritime Silk Road").
See map of the future and fast "Chinese Silk Road", in:
http://www.cimentoitambe.com.br/cinturao-economico-ligara-china-a-europa/
See short movies in English and Arabic:
https://www.youtube.com/watch?v=LM8N717U7d0
https://www.youtube.com/watch?v=SLCuIw0dFhM
https://en.wikipedia.org/wiki/Trans-Asian_Railway
http://en.yibada.com/articles/77813/20151026/china-confident-completing-eurasian-trans-asian-railway.htm
Thus Brazil, especially the Central-North and Northeast Regions need to prepare from now on to embark on the future – in a much more competitive and faster way than the current ports in Central-South Region.
Currently, from the Itaqui-MA Port to Chinese ports, via South Africa, there are about 22,000 km and at least 35 days of round-trip giant ships.
See article in Portuguese about the Port of Itaqui in:
http://economia.uol.com.br/noticias/reuters/2015/09/23/especial-porto-de-itaqui-ganha-relevancia-no-agronegocio-antecipa-metas-e-atrai-investidor.htm
Thus, in the future, besides the TAR railway and in north-east direction until all the Middle East plus north and north-east of Africa as well as throughout Asia, we have a new direct Brazilian sea route, cheap and suited for giant ships between our very deep ports of Itaqui, Espadarte, future Colares and even Tubarão (as well as the deep ports of Barcarena, Suape, Pecém and future Ilheus) to the Turkish industrial ports in Mersin (draft of 14 meters) and Isdemir / Iskenderun (two berths with a draft of 17 meters, about 2 meters more than our current port of Suape) and from there, by future chinese Railway Silk - see below - to the Middle East, Africa and throughout Asia.
From Brazilian ports to the Turkish ports distances of only 10,500 kilometers have to be overcome, via the Mediterranean Sea, which would reduce the total route, including rail stretch to the eastern Chinese ports, by around 5000 kilometers. So coming soon we have a direct corridor up and fast to giant ships would be "ore-oil", "roll-on / roll-off" and containers giant ships for up to 25,000 ud (in future), including trend for strong grain transportation, meals, oil, brown sugar, all frozen meets, juices and timbers occur only by containers. Even part of the ores is already being transported in containers in order to take advantage of the return shipping.
The largest current container ship, the CMA / CGM "Benjamin Franklin", is 20 stories high and can carry more than 18,000 containers. Its engine occupies space of 23 meters and it has 21 knots of thrust, equivalent to 11 Boeing 747-400 engines (3,000 Knewton).
See photos and short movie of this giant ship:
http://engenhariae.com.br/curiosidades/conheca-o-maior-navio-cargueiro-do-mundo/
Let us now see some recent good news about the works in progress in Brazil and its high potential after another new deepwater port of the Ilheus City - BA (in final design after to get the environmental release) over a new railway, the FIOL Rail (45% of all already ready) as the following link in Portuguese (we have diagnosed, following the evolution, visited and photographed some of these works to our customers). Both – deep port more strategic future rail - must be built and operated by specialized Chinese companies.
http://www.revistaferroviaria.com.br/index.asp?InCdNewsletter=8202&InCdMateria=24665&InCdEditoria=2
This future horizontal East-West Railway (FIOL), broad gauge and with coordinated between 14,5o S to 13,2o S - passing through a region with high grain production, cotton, food and many mineral deposits already in production - will join with the current North South Railway (the FNS coming from the far and very deep Itaqui Port on North on (2:34 S more 44:22 W) in the Uruaçu City, State of GO (14:31 S more 49:08 W) and its already about 60% complete between the Ilheus future deep port in State of BA (14:31 S more 39:0200 W) to the Barreiras City – BA (12:08 S more 44:58 W), being physical works have arrived in Sao Desiderio City, Bahia State, very close to Barreiras -BA.
See english and chinese reports:
http://www.sde.ba.gov.br/vs-arquivos/imagens/revista-pdf-8969.pdf
See below recent photos of the long railway bridge - in the beginning of construction to complete in 2018, on the São Francisco River in Bom Jesus da Lapa (BA) - already in the middle of the course of future FIOL East West Railway. This future railway in broad gauge, and already about 60% complete, will connect the future deep port of Ilheus-BA to meet the FNS - North South Rail in Uruaçu-GO. It is almost certain that this FIOL railroad as well more the Ilheus port will be finished (rail) or be built (port) and operated by Chinese construction companies and are in final negotiations with governments.
http://www.verissimofundacoes.com.br/fundacoes/index.php/home/4-obras/81-ponte-ferroviaria-sobre-o-rio-sao-francisco-serra-do-ramalho-bom-jesus-da-lapa-ba.html
In turn the strategic and almost ready the FNS North-South Railway is vertical, broad gauge - so much faster - and will travel in the future 4,155 km from the extreme north Port of Itaqui - MA to the extreme south Port of Rio Grande - RS, that is crossing the North of Brazil's to the South of Country. It is already 98% complete between the super deep North Port of Itaqui - MA to Estrela D'Oeste City in State of SP (20:17 S more 50:23 W), where it joins the current The Vicente Vuolo Railway, former Ferronorte Rail, already fully operational from the Rondonópolis City in heart of State of MT (16:26 S more 54:38 W) to the Port of Santos SP (23:55 S more 46:20 W), yet very strategic and important, but that, being shallow and close to great mountains and their silting it tends to be a exporter industrial port more for import.
The FNS Railway along with the other two soon to be concluded (the FIOL Rail more the Transnordestina Railway), additional to the deep ports located at the end of its rail lines will significantly change the geo-economic and social map of Central-North (Center-West + North grouped regions) and Northeast regions by 2030 (mostly in the theoretical parallel described above Vitória-ES more Montes Claros-MG more Uberlandia-MG more Cuiaba-MT), including some return migration from big cities as São Paulo and Rio de Janeiro. With this, there should be a fast doubling or even tripling of local and regional consumption and others demands.
It is anticipated that nearby cities or up to 300 km of the three railways described herein, especially with grains, foods and timber cargo terminals, mineral deposits, processors or providers and others, should increase between 50% to 300% of its population by 2050, which will require many external or internal investments, particularly in regional partnerships, and this with or without the effects of current investigative and punitive of the named "Jet Wash" and others criminal operations. The local workforce is sufficient and it has been easy training, including in English language. There are already many small colleges over many English language private schools in major cities.
See short movie with end of the FNS Railway works on State of Goias at 2014:
https://www.youtube.com/watch?v=wjp1PWgS2Jk
To complete the part of the extensive and new the FNS North-South Railroad situated on center (half) of country - that is, the physical works and before the signs and rail tests - there are only complete 100 meters from the railway bridge over the rio grande between Iturama City on State of MG and the Ouroeste City on State of SP, being a work in the final phase, but almost secret, because no nationalist and developmentalist Brazil press to release it, on the contrary, trying to hide.
See recent pictures of this strategic bridge at:
http://atribunanaweb.com.br/noticia/maioria-desconhece-construcao-de-ponte-ferroviaria-sobre-rio-grande
Also, see the link below other recent pictures of this same railway bridge, under construction and with only 100 meters to finish in 2017 and will connect quickly and by broad gauge form – by the future FNS North South Railway over the current Railway Vicente Vuolo - the Port of Itaqui-MA to the Port of Santos-SP.
http://www.verissimofundacoes.com.br/fundacoes/index.php/obras/67-ferrovia-norte-sul-iturama-mg.html
Already the Transnordestina Railway - another horizontal / vertical giant rail (as the FIOL), fast, private, highly strategic, almost secret, passing by very poor regions but with many potential sources of numerous minerals - even with lack of resources, is already about 55% complete in its main parts, from inside the PI, PE and CE States to the super deep Suape-PE Port (8:22 S more 34:58 W) and deep Pecem-CE Port (3:32 S more 38:48 W). In those new and still very cheap areas, flat or medium flat and with rainfall above 1000 mm / year, that is, perfect for soybeans, sorghum, cattle and fruit / pulp, also provides significant expansion of grain production, fruit / pulp, meat and other foods. There are also many perfectly irrigable areas, including several cold water geysers (named locally of “jorros”).
At the far end horizontal west point, the construction works on the Transnordestina railyway have arrived already in Itaueira City in the state of Piaui (coordinates 7:28 S and 43:00 W), ie, only 170 km from Eliseu Martins City, in same State and 340 km from Teresina-PI. At the far vertical edge point goes to north, the construction works are already in Senador Pompeu City in State of CE (5:35 S more 39:22 W), about 340 km away from the port of Pecem-CE.
So there's no way back if it comes to Brazil´s development and several more of these railway projects are underway, to be completed by 2020.
In the near future the new Transnordestina will be connected between Eliseu Martins-PI (final stretch of works) to the FNS North-South Railway already in Porto Franco-MA (6:20 S more 47:24 W), linking horizontally and vertically form the main railways of the new Central-North and Northeast to the deep ports above the Tubarão very deep Port (VALE), closer to Vitoria City - ES.
See recent pictures at:
http://cidadesnanet.com/news/municipios/paulistana/transnordestina-trilha-novos-caminhos-para-o-piaui/
Besides those railway projects in implantation, we have some others in its final state for renovation / expansion to be completed by 2025, much via concessions plus a little shallow or even shallow river ports, but very strategically located, as Manaus-AM, Macapa-AP, Miritituba-PA and Santarém-PA all preparing to receive and to send out cargo ships destined towards the new channels of Panama and future Channel of Nicaragua.
Additionally, we will soon have very deep and strategic seaports for mineral fillers, grains, word and others, to be installed in Colares-PA or to expand in Barcarena-PA and in Espadarte/ Curuçá-PA.
We also have 03 other large and strategic railways in fast broad gauge (1.60 m) as below:
1) The first future railway comes from Sinop-MT (local junction with the future FICO Midwest Railroad, as part of the future Bi-Oceanic Railway) to Miritituba-PA (one shallow river port near the port of Santarém-PA). This projected future railway is also referred to as “The grain rail”;
2) The second future rail is an extension of the FNS North South Railway already in Açailândia-PA with approximately 450 km to the end and vey deep port of Barcarena-PA and / or future super deep port of Colares-PA, both near Belém-PA;
In Açailândia City already we have the Carajás Railway (owner to VALE) and recently it has received about 513 km doubled tracks to the super deep port of Itaqui-MA.
Also, the Açailândia City (future big cross rail) is 215 km distant from the Porto Franco-MA by the current FNS - North South Rail, one city where will be the real beginning of the Transnordestina Railroad (in fast works as above described), via 620 km tracks to Eliseu Martins-PI. From there directly and quickly we have more 1,728 km broad gauge tracks (70 % completed) to the deepwater port of Suape-PE, situated on east direction, or to port of Pecém-CE, through and reaching the middle of the course in Salgueiro-PE (future big cross rail and coordinates6: 8:03 S more 39:07 W) and from there 955 km in the north direction to the port of Pecém (stretch rail already 40% complete, with most of the renewal and adaptation of the old narrow-gauge or metric stretch (1.00 m) of the old CFN - Northeast Railway Company changing for broad gauge (1.60 m) of the Transnordestina Rail.
Also it is important to note that Brazil still has 23,489 kilometers of old railways (narrow gauges), currently hardly operational but that intersect in many strategic locations with the new broad gauge railways. Mistakenly, they were all built many years ago in narrow gauge, but which allow transfers to the new railways by broad gauge. Some, like the giant and old the Centro Atlantica Railway, owner VALE, with 7,080 km of narrow gauge is reinforcing the structure and implementing the third track for the route also by broad gauge in most sections. This Rail already carries a lot, including many grains from the Midwest and Southeast Regions to the super deep port of Tubarão (ES) and it passes through the interior of SP, RJ, ES, GO, MG ending in Juazeiro-BA (region of irrigated fruit situated on irrigable banks of the River San Francisco, that is, very high potential for much more investments) so also very close to new the Transnordestina railroad as above.
3) The third future rail is the giant Bi-oceanic Railroad starting in Campos-RJ a big city situated in core of giant wells more northern tip of the giant pre-salt ocean oil wells over oil products processors and providers. Also the Campos City is very close to the new, 100% ready, giant and very deep Açu Port and its mineral’s more industrial, oil wells, oil products and gas, vehicles manufactures and fertilizers processor new zone). From Campos-RJ bound to distant minerals and deep ports of Peru, through future to north direction by the seaside of RJ and ES more to west direction by the interior of MG or BA, GO, MT, RO and AC to arrive in Peru a country rich in phosphate and many strategic minerals to process in Brazil too (from Brazil will come to the Peruvian ports many grains, meats and other processed foods, coffee, sugar, ethanol, wood and mineral of hundreds of future strategic deposits). The best is that this future giant railroad (forecasted 4,400 km) will go through future medium and large cities in the interior of Brazil (local of current and future agribusiness and mining boom, whose external competitiveness should further extend the combination of lower costs and higher sales prices) also with strong and rapid expansion of consumption and other local demands.
See below the new, giant, 100% ready and very deep the Açu Port (owner to Prumo Logistics Company more arabs).
http://www.bnamericas.com/en/news/infrastructure/brazils-prumo-readies-acu-port
More a short movie “Aerial tour of Açu Port”:
https://www.youtube.com/watch?v=L_gEir4AP34
This future Bi-oceanic railway already is called by the Chinese "South America Silk Route", as part of South railway initiatives, also in partnership and taking place in Venezuela and Argentina.
See below article in Portuguese about:
http://www.voltairenet.org/article187790.html
More:
http://www.businessinsider.com/china-plans-to-build-a-3300-mile-railway-across-south-america-2015-6
And:
http://www.courcyint.com/component/k2/item/66135-brazil-peru-big-infrastructure-the-trans-oceanic-railway.html
In fact, according to international consultants and policy analysts, it comes of a big Chinese and Russian geopolitical plan guaranteeing the supply of raw materials and food and others processed items in long-term and much cheaper (without going through the powerful and cartelized trading from USA and Europe that dominate world prices also massacring farmers, cooperatives, providers, transporters and local government), all headed by China (owner of most of the Panama canal over its giant free zone of Colon) plus Russia (already dominant in Nicaragua and its future giant channel in partnership with Chinese), being something also to besiege and to isolate the United States.
To quickly start up those future railways, highly specialized investors and companies from China, Russia and Germany have already demonstrated their interest in building them and operate them on fixed-term regime of concessions. Initially, still in 2017, should start Sinop-MT railway to Miritituba-PA or Santarém-PA (grain rail) plus completion of the FIOL rail from since the railway cross junction in Uruaçu-GO (new Chinese project) or in Figueirópolis-TO (former VALEC project) to super deep port of Ilheus / Aritaguá-BA. In 2018, should start - probably by Chinese investor and companies - the future giant Bi-Oceanic Railroad above from Campos-RJ to the Peruvian ports.
Please see: 2011 - Logistic Infrastructure Scenario in Brazil:
http://www.transportes.gov.br/images/Materiais_Cursos_Palestras/PDF_docs/Logistc_insfrastructure_Brazil.pdf
Also, please, see in link below a complete logistic report 2015 by type more potential for investors (Logistics Investments Program), as reported by Ministry of planning Brazil Government.
http://www.logisticsbrazil.gov.br/
Please download and see too: “Investments in transport infrastructure (2007-2016) in Brazil…”:
http://pt.slideshare.net/AndreDantas3/investments-in-transport-infrastructure-20072016-in-brazil-and-preparations-for-the-world-cup-2014-and-olympic-games-rio-2016
And see also in english:
The BNDES Brazilian Development Bank – Annual Report 2014.
http://www.bndes.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/empresa/RelAnual/ra2014/RA_2014_ing.pdf
More:
http://infrastructurebrasil.investexportbrasil.gov.br/Sites/EstadosUnidos/
And:
http://www.seae.fazenda.gov.br/assuntos/Infraestrutura/infraestrutura-brasil/arquivos/brazilinfrastructure_edicao2_2015.pdf
See more strategic information about in English in our previous articles:
Brazil: "A giant construction site for the future of its people"
http://www.agrolink.com.br/upload/colunas/BRAZIL-A-GIANT-CONSTRUCT-ON-SITE-FOR-THE-FUTURE-OF-ITS%20PEOPLE.pdf
2) Brazil Claims Less Taxes Than Many Comparable Countries
http://www.agrolink.com.br/upload/colunas/Brazil%20claims%20less%20taxes%20Climaco.pdf
3) How to Distinguish Serious Investors and Lenders from Frauds?
http://www.agrolink.com.br/colunistas/ColunaDetalhe.aspx?CodColuna=7169
“THE AGROVISION NEW BRAZIL 2020/2030 PROJECT” - NEW FULL VERSION IN DECEMBER 2012
2) Brazil Claims Less Taxes Than Many Comparable Countries
http://www.agrolink.com.br/upload/colunas/Brazil%20claims%20less%20taxes%20Climaco.pdf
3) How to Distinguish Serious Investors and Lenders from Frauds?
http://www.agrolink.com.br/colunistas/ColunaDetalhe.aspx?CodColuna=7169
“THE AGROVISION NEW BRAZIL 2020/2030 PROJECT” - NEW FULL VERSION IN DECEMBER 2012
