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Page 1: Brazil's Priority Transportation Projects
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TheU.S.TradeandDevelopmentAgency

The U.S. Trade and Development Agency helpscompanies create U.S. jobs through the export ofU.S. goods and services for priority developmentprojects in emerging economies. USTDA links U.S.businesses to export opportunities by fundingprojectplanningactivities,pilotprojectsandreversetrade missions while creating sustainableinfrastructure and economic growth in partnercountries. USTDA promotes economic growth inemergingeconomiesbyfacilitatingtheparticipationofU.S.businesses intheplanningandexecutionofprioritydevelopmentprojectsinhostcountries.TheAgency’s objectives are to help build theinfrastructure for trade, match U.S. technologicalexpertise with overseas development needs, andhelp create lasting business partnerships betweentheUnitedStatesandemergingeconomies.

ThisguidewasfundedbytheU.S.TradeandDevelopmentAgency(USTDA),anagencyoftheU.S.Government.Theopinions,findings,conclusions,orrecommendationsexpressedinthisdocumentarethoseoftheauthor(s)anddonotnecessarilyrepresenttheofficialpositionorpoliciesofUSTDA. USTDAmakesnorepresentationabout,nordoesitacceptresponsibilityfor,theaccuracyorcompletenessoftheinformationcontainedinthisguide.

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TABLEOFCONTENTS

1. INTRODUCTION............................................................................................8

1.1 BrazilMarketChallengesandEntryStrategies.............................................................................8

1.2 Brazil’sTransportationSector......................................................................................................9

1.2.1 NewMeasuresAdoptedfortheTransportationSector....................................................10

1.2.2 ProcedureofExpressionofInterest(PMI).........................................................................11

2. AVIATION...................................................................................................13

2.1 AviationOpportunitiesinBrazil.................................................................................................13

2.2 FederalandStateAirportConcessions.......................................................................................14

2.3 InformationonAirportstobeConcessioned.............................................................................18

2.4 AdditionalStateAirportsExpectedtobeConcessioned............................................................26

2.5 PrivateAirportandAirHubDevelopmentsinBrazil..................................................................28 2.5.1 SaoPauloCatarinaExecutiveAirport.................................................................................28

2.5.2 LATAMAirlinesGroupS.A..................................................................................................30

2.6 RegionalAviationDevelopmentProgram(PDAR)......................................................................31

2.7 BrazilAviationOverviewandRegulatoryFramework................................................................33

3. HIGHWAYS.................................................................................................35

3.1 HighwayConcessionProjectOpportunities...............................................................................35

3.2 HighwayConcessions.................................................................................................................36

3.3 2016HighwayConcessions–FirstRound..................................................................................38

3.3.1 ProjectBR-476/480(PR/SC)...............................................................................................39

3.3.2 ProjectBR-364/365(GO/MG)............................................................................................40 3.3.3 BR-364/060(MT/GO).........................................................................................................41

3.3.4 ProjectBR-163(MT/PA).....................................................................................................42

3.4 2016HighwayConcessions–SecondRound.............................................................................43

3.4.1 ProjectBR-101/BA..............................................................................................................45

3.4.2 ProjectBR-101/SC..............................................................................................................46 3.4.3 ProjectBR-262/MS.............................................................................................................47

3.4.4 ProjectBR-267/MS.............................................................................................................48

3.4.5 ProjectBR-280/SC..............................................................................................................49

3.4.6 ProjectBR-364/RO/MT.......................................................................................................50 3.4.7 ProjectBR-101/232/PE.......................................................................................................51

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3.4.8 ProjectBR-262/381/MG/ES...............................................................................................52

3.4.9 ProjectBR-282/470............................................................................................................53

3.4.10 ProjectBR101/493.............................................................................................................54 3.4.11 ProjectBR101/116.............................................................................................................55

3.5 StateofSaoPauloHighwayConcessionProgram......................................................................57

3.6 IntegratedNetworkfortheCollectionofElectronicInformationProject..................................58

3.7 BrazilHighwayOverviewandRegulatoryFramework...............................................................60 3.8 U.S.DepartmentofTransportation(USDOT)andBrazil’sMinistryofTransport(MOT)............61

4. PORTS........................................................................................................62

4.1 MarketOpportunitiesinthePortSector....................................................................................62

4.2 VesselTrafficManagementSystem(VTMS)...............................................................................63

4.3 PortologProgram.......................................................................................................................64

4.4 DredgingProjects.......................................................................................................................66 4.5 PortConcessionProjects............................................................................................................68

4.6 OpportunitiesforPortAreaLeasing–Step1forGroup1.........................................................69

4.7 Brazil’sPortSectorOverviewandRegulatoryFramework.........................................................71

5. RAILWAYS..................................................................................................72

5.1 Brazil’sRailwayOpportunities...................................................................................................72

5.2 FreightRailOperators................................................................................................................73 5.3 FreightRailwayConcessionProgram.........................................................................................74

5.4 RailwayConcessionOpportunitiesin2016................................................................................75

5.4.1 ProjectNorte–SulRailway(Acailandia/MA-Barcarena/PAandPalmas/TO.......................77

5.4.2 ProjectNorte-SulRailway(Anapolis/GO-EstrelaD’Oeste/SP-TresLagoas/MS)................78

5.4.3 Project-LucasdoRioVerde/MT-Itatuba/PARailwayProject(MirititubaDistrict)............79 5.4.4 Project-RiodeJaneiro-EspiritoSantoRailway..................................................................80

5.5 FreightRailwayOperationalSystemsStandard.........................................................................80

5.6 OverviewofFreightRailwayandRegulatoryFramework..........................................................81

6. MASSTRANSITSYSTEMS............................................................................83

6.1 Brazil’sUrbanPassengerTransportationOverview...................................................................83 6.2 PassengerRailTransportationProjects......................................................................................84

6.3 BusPublicTransportationSystemProjects................................................................................87

6.3.1 SaoPauloBusPublicTransportationSystem.....................................................................88

6.4 PortoAlegre’sPublicAgencyforTransportationandCirculation(EPTC)...................................89

7. FINANCING.................................................................................................91

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7.1 CapitalMarketTools..................................................................................................................91

7.2 TheBrazilianDevelopmentBank(BNDES).................................................................................91

7.2.1 BNDESFinancing.................................................................................................................92 7.2.2 BNDESNon-RepayableFunds.............................................................................................92

7.2.3 BNDESSubscriptionofSecurities.......................................................................................92

7.2.4 SummaryofFinancialFacts(BNDES)toSupporttheTransportationSector.....................92

7.3 OtherFinancialInstitutions.......................................................................................................93 7.3.1 TheExport-ImportBankoftheUnitedStates....................................................................93

7.3.2 OverseasPrivateInvestmentCorporation(OPIC)..............................................................93

7.3.3 InternationalFinanceCorporation(IFC).............................................................................93

7.3.4 MultilateralDevelopmentBanks........................................................................................94

7.4 AdditionalOrganizationsPromotingU.S.ExportsinBrazil........................................................94 7.4.1 TheU.S.CommercialService..............................................................................................94

7.4.2 TheBrazil-U.S.BusinessCouncil.........................................................................................95

AppendixA......................................................................................................96

AppendixB.....................................................................................................107

WebResources...............................................................................................108

Glossary.........................................................................................................109

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LISTOFFIGURESFIGURE1–FEDERALANDSTATEAIRPORTCONCESSIONPROJECTSFOR2016...........................................................15

FIGURE2–PINTOMARTINSAIRPORT................................................................................................................18

FIGURE3-PINTOMARTINSAIRPORTANNUALPASSENGERNUMBERS(INMILLIONS).................................................18

FIGURE4–D.LUISEDUARDOMAGALHAESAIRPORT...........................................................................................19

FIGURE5-MAGALHAESAIRPORTANNUALPASSENGERNUMBERS..........................................................................19

FIGURE6–HERCILIOLUZAIRPORT....................................................................................................................20

FIGURE7HERCILIOLUZAIRPORTANNUALPASSENGERNUMBERS...........................................................................20

FIGURE8–SALGADOFILHOAIRPORT................................................................................................................21

FIGURE9–SALGADOFILHOAIRPORTANNUALPASSENGERNUMBERS(INMILLIONS)................................................21

FIGURE10-ROLIMADOLFOAMAROAIRPORT....................................................................................................23

FIGURE11-CAMPOSDEAMARAISAIRPORT.......................................................................................................23

FIGURE12-UBATUBAAIRPORT........................................................................................................................24

FIGURE13–BRAGANCAPAULISTAAIRPORT.......................................................................................................24

FIGURE14–ITANHAEMAIRPORT......................................................................................................................25

FIGURE15–CALDASNOVASAIRPORT................................................................................................................25

FIGURE16-SAOPAULOCATARINAEXECUTIVEAIRPORT.......................................................................................28

FIGURE17-TAMAIRLINES.............................................................................................................................30

FIGURE18–REGIONALAIRPORTDEVELOPMENTPROGRAM(INBRAZILIANREALES)..................................................32

FIGURE19–HIGHWAYSTOBECONCESSIONEDIN2016.......................................................................................37

FIGURE20–2016HIGHWAYCONCESSIONS(FIRSTROUND).................................................................................38

FIGURE21-BR-476/480(PR/SC)...................................................................................................................39

FIGURE22-BR-364/365(GO/MG)...............................................................................................................40

FIGURE23-BR-364/060(MT/GO)................................................................................................................41

FIGURE24-BR-163(MT/PA)........................................................................................................................42

FIGURE25-UPCOMINGHIGHWAYCONCESSIONS(2016).....................................................................................44

FIGURE26BR-101/BA..................................................................................................................................45

FIGURE27-BR-101/SC.................................................................................................................................46

FIGURE28-BR-262/MS................................................................................................................................47

FIGURE29-BR-267/MS................................................................................................................................48

FIGURE30-BR-280/SC.................................................................................................................................49

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FIGURE31-BR-364/RO/MT.........................................................................................................................50

FIGURE32-BR-101/232/PE.........................................................................................................................51

FIGURE33-BR-262/381/MG/ES..................................................................................................................52

FIGURE34-BR-282/470...............................................................................................................................53

FIGURE35-BR-101/493...............................................................................................................................54

FIGURE36-BR-101/116...............................................................................................................................55

FIGURE37-NUMBEROFVEHICLEFLEETINBRAZIL(INMILLIONS)..........................................................................60

FIGURE38-DREDGINGPROJECTSATBRAZILIANPORTS........................................................................................66

FIGURE39-BRAZILIANGOVERNMENTPORTFACILITYLEASING..............................................................................68

FIGURE40-PUBLICPORTS/TERMINALSFORPRIVATEUSE(MILLIONTONS)............................................................71

FIGURE41-MRSFREIGHTTRAIN.....................................................................................................................73

FIGURE42-BRAZILRAILWAYSMAP..................................................................................................................74

FIGURE43–2016FREIGHTRAILWAYCORRIDORSFORPRIVATECONCESSION..........................................................76

FIGURE44–ACAILANDIA/MA-BARCARENA/PA.................................................................................................77

FIGURE45-ANAPOLIS/GO-ESTRELAD'OESTE/SP..............................................................................................78

FIGURE46-LUCASDORIOVERDE-ITAITUBA.......................................................................................................79

FIGURE48-RIODEJANEIRO-ESPIRITOSANTORAILWAY.......................................................................................80

FIGURE49–CURITIBAARTICULATEDBUS...........................................................................................................87

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1. INTRODUCTION1.1 BrazilMarketChallengesandEntryStrategies

Conducting business in Brazil requires a thorough knowledge of the local environment and acorrespondingstrategy.U.S.companiesseekingtoinvestinBrazilshouldtakethetimetolearnaboutpotential costs such as those related to distribution, Government procedures, employee benefits,environmental laws and the tax structure. The local public procurement process in particular can bedifficultforoutsiderstonavigate.TheBrazilianGovernmentisthecountry’sbiggestbuyerofgoodsandservices, anda likely consumerofU.S. exports, so it is important todevelopanunderstandingof theprocurementsystem.U.S.exportersmayfindthemselvesatacompetitivedisadvantageinBraziliftheydonotmaintainapresenceontheground,suchasestablishedpartnershipswithBraziliancompaniesorsometypeoflocalsubsidiary.

U.S.companieswillhavetopaytariffs,andtheywillfacecomplexcustomsandlegalsystems.Therearealsolocalcontentregulationsinplaceforforeigncompaniesthatmanufactureequipmentinthecountry,requiringthataminimumpercentage(varyingdependingonthetypeofequipment)ofdomesticcontent(materialsandparts)aremadeinBrazilratherthanimported.

Evenamongallofthesechallenges,partneringwiththerightBraziliancompanycouldhelpinmanagingsomeoftheseburdens.SuccessinBrazil’sbusinessculturereliesheavilyupondevelopingstrongpersonalrelationships.Inmostcases,U.S.firmsneedtodevelopalocalpresenceandtheyshouldinvesttimeindevelopingrelationshipsbymakingfrequentvisitstoBrazil.TheU.S.CommercialServicesuggeststhatU.S.businessesmeetone-on-onewithpotentialpartners,andevenoffersaslateofservicessuchastheGoldKeyMatchingService,whichfacilitatesmeetingswithpre-screenedpotentialclientsorpartners.

U.S. companies should also consider working through a qualified representative or distributor whendevelopingnewbusiness in theBrazilianmarket. Some firmsmayneed toestablish anofficeor jointventureinBrazil(dependingonthetypeofbusiness)asitisdifficultforU.S.companiestoparticipateinthe public sector procurement process at the federal or state levels without a Brazilian partner or aphysicalpresencein-country.

TheBrazilianGovernment’sprocurementrulesapplytopurchasesmadebypublicentitiesincludingstate-owned companies. Brazil has anopen competitionprocess formajorGovernmentprocurements. TheGovernmentmaynotmakeadistinctionbetweendomestic and foreign-owned companiesduring thetenderingprocess;however,whentwoequallyqualifiedvendorsareconsidered,thelaw’simplementingregulationsallowforapreferencetoBraziliangoodsandservices.

Brazil uses least-cost procurement methods and price is the overriding factor in selecting suppliers.However,thelawallowsfortheconsiderationofnon-pricefactors,givingpreferencestocertaingoodsproducedinBrazil,andstipulatinglocalcontentrequirementsforfiscalbenefitseligibility.Additionally,nearlyallbidsrequireestablishmentofalocalrepresentativeforanyforeigncompanyparticipatingintheprocess.ForeigncompetitioninBrazil’stransportationsectorisstrong,withasolidpresenceofEuropeanandAsiancompanies.Therefore,U.S.shouldbepreparedtocompeteinthatenvironment.

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1.2 Brazil’sTransportationSector

In 2007, the Brazilian Government launched the Growth Acceleration Program (PAC) to promote theplanningandexecutionoflargeinfrastructureworks,aswellasurbanandlogisticsinitiatives.ThePACaimedtohelpthecountrymaintainsustainablegrowthwithinashortperiodoftime(PAC1:2007-2010;PAC2: 2011- 2015). The program’s goalswere to increase economic productivity, boost technologicalmodernizationandadvancethecountry’scompetitiveness.

The PAC invested nearly $320 billion into Brazil’s infrastructure throughout its first four years. Theprogramprovedsuccessful,triggeringproductivityandultimatelyallowingBraziltoovercomeeconomicstagnation.Additionally, thePAC sought to improve the logistics strategies for investors interested inleasingportoperatingareas.Otherinvestments,suchasdredgingandcargosecurityweremadepossiblewithPAC1andPAC2resources.

InAugust2012,theBrazilianGovernmentlaunchedtheLogisticsInvestmentProgram,knownlocallyasthePIL,withthegoalofdevelopingtransportationsystemstoaccommodategrowingpopulationsacrossmajorcities.ThePILfeaturesaninvestmentmodelthatfavorspublicprivatepartnerships(PPP).SomeconcessionshavebeenawardedtoPPPsformanyhighwayprojectsthatuseIntelligentTransportationSystems (ITS). Also, public-private partnerships have formed between the Brazilian Government andprivate investors,resulting inconcessioncontracts for improvingrailway infrastructure.Between2012and2014,theGovernmentconcessionedapproximately7,500Kmofhighwaysandnearly10,000Kmofrailways,alongwithseveralportareasandairports.

TheBrazilianGovernmenthasasolidtrackrecordofimplementingPPPprojects.UnderthePIL,thepublicsector delivered more than 50 transportation infrastructure projects to the private sector. Projecthighlightsinclude:

Ø Six international airports auctioned to the private sector (Natal, Sao Paulo-Guarulhos, Rio deJaneiro-Galeao,Brasília,BeloHorizonte-ConfinsandCampinas-Viracopos);

Ø Sixhighwaysauctionedtotheprivatesector,totaling4,872Kmincludingfivemajorhighwaysandonemajor tollbridge (Rio-NiteroiBridge) thatwill generateanestimated$11.1billion innewinvestmentoverthe30-yearcontractperiod;and

Ø Morethan36privateportterminalprojectshavebeenapprovedforconcessions.

OnJune9,2015,theGovernmentunveiledanewinfrastructureconcessionsprogramintendedtodraw$64billionininvestmentoverthenextfiveyears.Theprogramwillfocusonupgradinghighways,railways,portsandairportsacross20states.Thenewconcessionswillhavelessaccesstostatebankfinancingthanpreviousprojects,andbidderswillbeexpectedtouseprivatefinancing.

Inpastyears,Brazil´sdemandforinfrastructureserviceshasincreasedsharply.Thedemandintheairlinetraffic,forinstance,grew182.5%1from2002to2012.Inthesameperiod,vehiclessalesgrew153.5%andporttrafficgrewover18%.Overthenextdecade,Brazilwillseegreaterdemandwithitsinfrastructurematrix, particularly from a substantial rise in oil production, new mining projects and agribusinessexpansion.Thisupticklikelywillbeduetogrowthinmarketsanddemandforcommodities,coupledwithgreatermarketaccessforBrazilianfoodproductsabroad.

1Inmillionsofpassengersperyear

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Brazil’stransportationinfrastructureisinneedofsignificantupgradeandexpansiontoincludeairports,highways, ports, railways and public transportation. The most commonly used method of freighttransportation is trucks hauling cargo, requiring an extensive network of roads and highways for thedistributionofgoods.Onlyabout20%ofBrazil'sroadsarecurrentlypavedandthelargercitiesfacemajortraffic congestionproblems. Long truck linesbackupbefore theports, causing substantialdelays forimportsandexports.ThissituationimpactsthecostoflogisticsinBrazil,whichisoneofthehighestintheworld.InastudybytheWorldEconomicForum,Brazilranked119outof142countriesintermsofroadqualityand130intermsofqualityofports.

TheBrazilianMinistryofTransportationindicatesthatreducingbottleneckswillcostupto$220billionbetween2008and2023.Thefundingwillsupporttheextensionofhighwaysandrailways,interconnectionoftheNorth-SouthRegionswiththeSoutheastRegion,aswellasportconstructionandmodernization.Inpreparationforthe2014WorldCupandthe2016OlympicGames,Brazilhasmadeinvestmentsinitstransportation infrastructure, however, much more is still needed. The Brazilian Government isdevelopingnewconcessionsandpublic-privatepartnershipstoleveragetheprivatesector’sresourcesinawaythatismutuallybeneficial.TheBrazilianGovernmentcontinuestopursuetheconcessionofportterminalsandportareasasameansto solicit funding andenhance infrastructure. Theprivate sector finds the concession initiatives tobeattractiveandtheGovernmentintendstoexpandtheprogramtoportfacilitiesinthefuture.

Thereisopportunityformarketentryintheaviationsectoraswell.SeveralkeyairportssuchasGuarulhosAirportinSaoPaulo,GaleaoinRiodeJaneiro,andtheBrasilia,Natal,andCampinasairportshavebeenconcessioned successfully. Notwithstanding these concessions, aviation infrastructure still requires agreatnumberofupgradesacrossthecountry.

Whiletheuseoffreightrailiswell-developedinurbanareas,therearelimitedpassengerrailnetworksoffered.Thefreightrailwaysysteminvolvesseveralprivateoperators.Tosupportincreasedtrade,Brazilrequiressignificantinvestmentstoexpandtherailwaynetworktotheports,offeringanalternativetoitscongestedhighways.

1.2.1 NewMeasuresAdoptedfortheTransportationSector

In2015,theGovernmentpresentednewtransportationinfrastructureprojectsintheareasofaviation,highways,portsandrail.Lastyear,theGovernmentadoptednewmeasurestoenhancetheattractivenessand profitability of infrastructure projects, specifically addressing regulatory risks and governancestructuresforthetransportationsector.Thesemeasuresseektomobilizeprivatecapitalandincreasetheefficiencyofpublicresources.AsannouncedbytheBrazilianMinistryofFinance,thefollowingarethenewmeasuressettosolicitprivatesectorparticipationinthenewtransportationconcessionprograms:

HigherProfitabilityinInfrastructureProjects

Ø TheInternalRateofReturn(IRR)forthenextconcessionofhighways,portsandairportswillaligntherisk-returnratioandmakeinvestmentsmoreprofitableforinvestorsandultimatelyconsistentwithglobalcompetition.

Ø Theprojectedincreaseinrateofreturnshouldattractglobalpensionfunds,investmentfunds,equity funds and insurance companies. Over the next 15 years, investment in infrastructureworldwideisprojectedtobe$90trillion,andBrazilhopestoattractagreaterproportionofthatthroughitsconcessioninitiatives.

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ReformingInfrastructureInvestmentsthroughInstitutionalChanges

Ø TheBrazilianGovernmenthasrequestedinstitutionalsupportfromtheWorldBank,theGlobalInfrastructure Facility (GIF) and the Inter-American Development Bank (IDB) in preparing andreviewing infrastructureprojects,especially in termsof contracts, the regulatoryenvironmentandthefinancialstructuringofthenewprojects.

AdditionalMeasurestoReduceRegulatoryRisk

Ø InAugust2015,theMinistryofFinancepublishedOrdinanceNo.640creatingaworkinggrouptostudy, consolidate and propose measures to improve regulatory standards, increase legalcertaintyforinvestorsandultimatelyenhanceBrazil’sbusinessenvironment.

Ø TheMultilateralInvestmentGuaranteeAgency(MIGA)andtheBrazilianGovernmentareholdingnegotiationsintermsofMIGAsupportingguaranteesfornewinfrastructureprojectsinBrazil.

AdditionalRulesfortheHighwayConcessionProgram

Ø Newruleshavebeenestablishedforthenexthighwayauctions,specificallyliftingtheminimumnetequityrequirementforcompaniestoqualifyforparticipation.

Ø Contracts will now establish specific procedures and deadlines for the National LandTransportationAgency’s(ANTT)reviewofrequeststore-establishtheeconomic-financialbalance(costadjustment)ofprojects. Previously,therewerenoclearlydefineddeadlinesforANTTtoreview these requests. The changebrings greaterpredictability to investors in economic andfinancialrecoveryprocesses.

1.2.2 ProcedureofExpressionofInterest(PMI)

The PMI allows the BrazilianGovernment to request information from the private sector on projectsrelated to aviation, highways, ports and railways. Requests may include project proposals, surveys,investigations,modelingand/orfeasibilitystudies.TheGovernmentcanusethisinformationtoevaluatethetechnicalandfinancialviabilityoftransportationinfrastructureprojects.

Thismeasureaimstoincreaseindustryparticipationthroughthedevelopmentofstudiesonports,roads,airportsandrail.ThePMIalsoseekstoprovidegreaterlegalcertaintyforpotentialinvestorsandpublicagenciesexecutingtheconcessionsprogram.

Companiesmay forwardproposals to the relevantGovernmentagency for theopeningofaPMI.Theproposalshouldreferencetheproject'sdescription,scopeandthepublicneedthattheprojectfulfills.TheGovernmentevaluatesandselectsthebest,mostviableprojectstosupporttheconcession'sbiddingprocess.Thewinningconcessionairecanobtainarefundforfundsspentonthedevelopmentofprojects,analysisandfeasibilitystudies,withaceilingof2.5%oftotalestimatedvalueoftheinvestment.

ThefollowingaretheGovernmentagenciesthattypicallyreceivetheseproposals:

Ø ANTTforhighwayandrailwayrelatedprojects;Ø SecretariatofCivilAviation(SAC);andØ SecretariatofPorts(SEP)andNationalWaterwayTransportationAgency(ANTAQ).

The PMI has served as a useful tool in concessioning transportation infrastructure projects and theGovernmentwillcontinueusingitforthenextroundofconcessions.ItisimportantforU.S.industryto

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takenoticeof companiesparticipating in thePMIprocess todetermineprojectneedsand to identifytechnologiesandservicesthatmayberequiredfortheproject’scompletion.

AsaGovernmentagencyinitiatesthePMIprocess,informationonthetypeofproject,includingdetailson interested companies that have submitted letters of intent, is published on the websites of:www.antt.gov.br,www.sac.gov.br,www.sep.gov.br,orwww.antaq.gov.br.ThatinformationshouldhelpU.S. companies todetermineearlyonwho thekeyplayers are in thePMIprocess, so they canbeginestablishingbusinessrelationshipstopromoteU.S.productsandservices.Inmostconcessionprojects,companiesthatoptoutofthePMIprocessarestillallowedtoparticipateinthepublicbid.

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2. AVIATION2.1 AviationOpportunitiesinBrazil

TheBrazilianGovernment’sJune2015decisiontoconcessionairportsinFlorianopolis,Fortaleza,PortoAlegreandSalvadoroffersU.S.companiestheopportunityformarketentry.

LATAMAirlines’plantodevelopahubintheNortheastwilllikelyrequireasubstantialamountofairporttechnologies. Other aviation programs such as the Regional Aviation Development Program (PDAR),includetheimprovementandmodernizationof270regionalairports,posesadditionalopportunitiesforU.S.exports.

Becausenewprivateairportoperatorsarenotboundby traditionalpublic tenderingprocedures,U.S.companiesmayengagedirectlyinanefforttofeaturetheirproductsandservices.Giventhechallengingtimelines in their concession investment contracts, operators are concerned with timely delivery ofproductsandservices.

U.S.businessesshouldexpectprivateoperatorstotakealong-termviewonthetechnologiestheyselectinthattheyvaluequality,anddonotletpriceserveasthesolecriterion.Privateairportoperatorstypicallyhaveasolidunderstandingofleadingaviationtechnologies.

Current and future concessionaireswill need toworkwith international suppliers of ICT services andsystemsthatsupportairportapplications,inordertoimprovetheirrespectiveairports.

ThereisgreatopportunityinBrazil’saviationsectorandthekeyforU.S.firmsistoengageearlyintheprocess.Theyshouldmakecontactwithpotentialprivateoperators(consortiums)thatwillneedaviationservicesandtechnologiestofulfilltheircontractualobligationswiththestateandfederalGovernments.

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2.2 FederalandStateAirportConcessions

OnJune9,2015,theBrazilianGovernmentlaunchedanewstageofthe2015-2018LogisticsInvestmentProgram(PIL),aprogramtobuildupandmodernizethecountry´stransportationinfrastructure.Intheairport sector, the program aims to expand aviation infrastructure, improve service quality, attractinternationalhumancapital,boosttourismandimprovecargotransportation.ThePILalsoaimstocreatenewregionalhubsthroughtheconcessionsofthefollowingairports:HercilioLuzinFlorianopolis(SantaCatarina-SC),PintoMartins,inFortaleza(Ceara-CE),SalgadoFilhoinPortoAlegre(RioGrandedoSul-RS)andLuizEduardoMagalhaes,inSalvador(Bahia-BA).

Thetotalestimatedinvestmentisnearly$3billionforallfourairports,withthebreakdownasfollows:PortoAlegreAirportat$806million,theSalvadorAirportat$967million,theFlorianopolisAirportat$485millionandtheFortalezaAirportat$580million.ThepublicsectorfinancingisexpectedtocomefromtheBrazilianDevelopmentBank(BNDES)andtheprivatesectorfinancingdependsuponeachconcessionaire’sfinancial arrangements.Theprivatecompaniesparticipating in theupcomingconcessionsare likely toconsist of partnerships between established airport operators, financing companies and constructioncontractors.

TheSecretariatofCivilAviation(SAC),whichisnowundertheMinistryofTransportation,PortsandCivilAviation,initiatedaPMIprocesstopreparefeasibilitystudiesforthefourbiggestairports,managedbyInfraero2.InJune2015,theGovernmentissuedthepublicannouncementfortheintenttoconcessiontheairports. Ten consortiumswere selected (out of 30 consortiums that submitted PMIs) to conduct theviabilityandfinancialanalysesfortheseairports.InOctober2015,theselectedconsortiumssubmittedtheirfeasibilitystudieswhichweresubsequentlyanalyzedbySACandtheNationalAgencyofCivilAviation(ANAC).SAChasofficiallyannouncedtheselectionofthefeasibilitystudiespresentedbytheAereoBrasilConsortium for theFortalezaandSalvadorAirports,and theMoyses&PiresSociedadedeAdvogadosConsortiumfortheFlorianopolisandPortoAlegreAirports.

There will be a second Government approval process that requires authorization from the FederalBrazilianCourtofAudit(TCU)beforetheprojectscanbeannouncedforpublicbidding.Becausethereisa substantial amount of paperwork to be prepared for these airport bids, SAC expects the final bidannouncementstooccurmid-yearof2016.AppendixBoftheguideincludesalistofthetenconsortiumsthat competed to have their viability studies selected. This information is being provided as theseconsortiumswillhaveanopportunitytocompeteinthepublicbiddingforallfouroftheairportsandU.S.companiesmaywishtoreachouttothemtodeterminetheir interestinparticipatingintheupcomingbidsandultimatelyoffertheirequipmentandservices.

WhilenoneofthecompaniesthatsubmittedstudiesunderthePMIisaU.S.company,SACofficialshavereportedthatU.S.companiescanparticipateinsupplyingaviationtechnologiesandprofessionalservicesbyworkingwiththeconsortiumsthatendupwinningthecontracts.

Inaddition,theGovernmentofSaoPauloannouncedplanstoconcessionsixstateairportstotheprivatesectorin2016.TheGovernmentexpects$30milliontobeinvestedintheconcessionofregionalairportsacross the cities of Araras, Braganca Paulista, Campinas (Amarais), Itanhaem, Jundiai and Ubatuba.

2Florianopolis,Fortaleza,PortoAlegre,andSalvador.

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Similarly,theStateofGoiashasannounceditsintentiontoconcessiontheCaldasNovasAirport,whichrequiresairsideandlandsideinfrastructureimprovements,terminalmodernizationandparking.

Thefigurebelowdisplaystheexpectedlocationsofairportconcessionsin2016.

Figure1–FederalandStateAirportConcessionProjectsfor2016

Table1providesasummaryofGoias’andSaoPaulo’sconcessionprograms.

Table1ForecastforRegionalDelegatedAirportConcessionsfor2016

Airport Capex(U.S.$) TypicalAirService ConcessionTerm(Years)

Araras/SP 2.5M GeneralAviation 20BragancaPaulista/SP 3.5M GeneralAviation 30CaldasNovas/GO 0.2M CommercialAviation 20Campinas/SP(Amarais) 4.7M GeneralAviation 30Itanhaem/SP 3.0M GeneralAviation 30Jundiai/SP 7.3M GeneralAviation 30Ubatuba/SP 4.0M GeneralAviation 30

These upcoming concessions pose many opportunities for U.S. exports, as the projects will requireprofessionalservicesandinfrastructurefinancing. Specifically,upgradeswill includenewrunwaysandtaxiways,aprons,terminalrenovationandexpansion,aswellasparkingfacilities.Theseprojectsarelikely

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tocallforcommunicationsystems,airlineandairsideoperationalsystems,landsideoperationalsystems,safetyandsecuritysystemsandairportadministrativesystems.

Thegovernmentprovidesabasicreferencetotheareasofimprovementforeachairportandthentheconsortiums interested inparticipating intheconcessionbidspresenttheirviabilitystudies, listingtheanticipatedneedsforeachairport.Subsequently,SACselectsthepreferredviabilitystudiesthatidentifytheprojectedinvestmentsandneedsforeachairportwhichmayincludeimprovementstotheairfield,terminalsandparkingfacilities.However,notuntilthepublicbidisofficiallyannounced,willthepublicbemadeawareofthespecificsforeachairportprojectintermsofimprovements,technologiesandfinalinvestment.

Thefollowingisalistofequipmentandsystemsthatwillmostlikelyberequiredfortheairportconcessionprojects.

CommunicationsSystems§ Integrated800MHzRadio

communications§ PrivateBranchExchange(PBX)

Telephone§ CellularTelephone§ VoIPTelephone§ PremisesDistributionSystems§ CableManagementSystem§ NetworkManagementSystems§ LocalAreaNetwork(LAN)§ WideAreaNetwork(WAN)

§ VirtualPrivateNetwork(VPN)§ NetworkSecurityManagement§ Ethernet§ Wi-Fi§ Gateways§ Intranet§ Extranet§ Internet§ InterfacestoITHelpDesk§ DataCenterandassociatedhardware

AirlineandAirsideOperationSystems

§ AirportOperationalDataBase(AODB)§ ResourceManagementDatabase(RMS)§ GateManagementSystem§ TicketCounterManagementSystem§ BaggageCarouselManagementSystem§ ElectronicVisualInformationDisplay

Systems(EVIDS)§ VisualPagingandEmergencyDisplay

Systems§ FlightInformationDisplaySystems

(FIDS)§ GateInformationDisplaySystems

(GIDS)§ RampInformationDisplaySystems

(RIDS)§ TugDriveInformationSystems§ BaggageInformationDisplaySystems

(BIDS)§ ParkingInformationDisplaySystems

§ AdvertisingInformationDisplaySystems§ Way-findingInformationDisplay

Systems§ PassengerCheck-InandBoarding§ Self-ServiceKiosk(Check-In)§ CommonUsePassengerProcessing

Systems(CUPPS)§ CommonUseSelf-ServiceKiosks(CUSS)§ CommonUseTerminalEquipment

(CUTE)§ DepartureControlSystems(DCS)§ WeightandBalancesystems§ AirlineGatewayServerSystems§ BaggageHandlingSystems(BHS)§ BaggageSortationSystems§ BaggageTrackingSystem§ CargoProcessingSystems§ PassengerBoardingBridgeSystems§ FlightTrackingSystems

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§ NoiseMonitoringSystems§ WeatherTrackingSystems

§ AircraftRefuelingSystems§ RunwayandTaxiwayLightingSystems

AirportLandsideOperationSystems§ ParkingGateandAccessControl

Systems§ ParkingRevenueControlSystems

§ ParkingSpaceManagementSystem§ TransportationDispatchSystem

AirportSafetyandSecuritySystems

§ CommandandControlCenterSystems§ MobileCommandPostSystems§ ComputerAidedDispatch(CAD)§ ClosedCircuitTelevisionSystems(CCTV)§ In-Line Explosive Detection Systems

(EDS)§ ScreeningSystems§ BiometricsSystems

§ AirportAccessControlSystems§ Perimeter Intrusion Detection Systems

(PIDS)§ FireAlarmandDetectionSystems§ EmergencyResponseSystems§ Customs/ImmigrationProcessSystems§ PassengerScreeningSystems§ BaggageScreeningSystems

AirportAdministrativeSystems

§ FinancialManagementSystems§ ProcurementManagementSystems§ AssetInventoryManagementSystems§ FinancialAssets§ HumanResourcesManagement

Systems§ SpaceandLeaseManagementSystems§ PropertyManagementSystems§ NoiseMonitoringSystems

§ AirportRevenueManagementSystem§ E-CommerceWebsiteforAirportand

Tenants§ TenantRelationsSystems(business

service,billing,contracts,electronicpayment,etc.)

§ DatabaseManagementSystems§ PublicAddressingSystem§ TourismandHotelInformationSystems

OtherEquipment

§ AirRescueandFireFightingsystems(ARFF)

§ EnergyEfficientLightingSystems

§ PowerandUtilitysystems(CentralEnergyPlant)

§ Electricwalkways,escalators,andelevators

ProfessionalServices

§ Airportplanningandpreliminaryengineeringservices

§ Engineeringanddesignservices§ Financialservices§ Airportsystemsintegrationservices

§ Securityplanninganddesignservices§ Testingandtrainingservices§ Operationalandmaintenanceservice

contracts§ Projectmanagementservices

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2.3 InformationonAirportstobeConcessioned

PINTOMARTINSAIRPORT

PintoMartinsAirportFacts

§ Located9KmawayfromdowntownFortaleza,intheStateofCeara

§ 3rdbusiestintheNortheastRegionand12thbusiestairportinthecountry

§ Averagegrowthinpassengertrafficbetween2003-2014was12%peryear

§ PassengerMovementin2014:6.5million§ CargoMovementin2014:57,083tons§ TrafficGrowthin2014:10%§ AnticipatedProjectInvestment:$580millionExpectedAreasofImprovements

§ Improvementoftherunwayandtaxiwaysystems§ Improvement/ExpansionofAircraftApron§ Renovation/expansionCompletepassengerterminal§ Constructionofparkingfacility§ UpgradeofATCandARFFequipment§ Planning,engineeringanddesignservices

Figure2–PintoMartinsAirport

5.0M

5.2M

5.4M

5.6M

5.8M

6.0M

6.2M

6.4M

6.6M

2011 2012 2013 2014

5.6M

6.0M 6.0M

6.5M

Figure3-PintoMartinsAirportAnnualPassengerNumbers(InMillions)

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THEDEPUTADOLUISEDUARDOMAGALHAESAIRPORT

MagalhaesAirportFacts

§ Located24KmawayfromthecapitalcityintheStateofBahia

§ MostbusyairportintheNortheastRegion,and8thbusiestinthecountry

§ Averagegrowthinpassengertrafficfor2003-2014was9.27%peryear

§ Passengermovementin2014:9.2million§ Cargomovementin2014:36.613tons§ AnticipatedProjectInvestment:$967million

ExpectedAreasofImprovements§ Constructionofnewrunway§ Expansionoftheaircraftpatioarea§ Expansion/modernizationofpassengerterminal§ Vehicleparking§ Cargoterminal§ UpgradeofATCandARFFequipment§ Planning,engineeringanddesignservices

Figure4–D.LuisEduardoMagalhaesAirport

8.0M8.1M8.2M8.3M8.4M8.5M8.6M8.7M8.8M8.9M

2011 2012 2013 2014

8.3M

8.5M 8.5M

8.9M

Figure5-MagalhaesAirportAnnualPassengerNumbers(InMillions)

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HERCILIOLUZAIRPORT

HercilioLuzAirportFacts

Ø Located12KmawayfromthecapitalcityintheStateofSantaCatarina

Ø 14thbusiestairportinthecountryand3rdbusiestairportintheSouthernRegion

Ø Averagegrowthinpassengertrafficbetween2003-2014:9.9%peryear

Ø Passengermovementin2014:3.6millionØ Cargomovementin2014:9,212tonsØ AnticipatedProjectInvestment:$485million

ExpectedAreasofImprovements

Ø UpgradestotherunwayandtaxiwaysystemsØ ConstructionofaircraftpatioØ ImprovementtopassengerterminalØ ConstructionofparkingfacilityØ ConstructionofcargoterminalØ UpgradestoATCequipmentØ UpgradesofARFFequipmentØ Planning,engineeringanddesignservices

Figure6–HercilioLuzAirport

0.0M

0.5M

1.0M

1.5M

2.0M

2.5M

3.0M

3.5M

4.0M

2011 2012 2013 2014

3.1M3.4M

3.9M3.6M

Figure7HercilioLuzAirportAnnualPassengerNumbers(InMillions)

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SALGADOFILHOAIRPORT

SalgadoFilhoAirportFacts

Ø Located7KmawayfromtheCityofPortoAlegre,StateofRioGrandedoSul

Ø 9thbusiestairportinthecountryandthemostbusyintheSouthernRegion

Ø Averagegrowthinpassengertrafficfor2003-2014:10.2%peryear

Ø Passengermovementin2014:8.4millionØ CargoMovementin2014:29,227tonsØ AnticipatedProjectInvestment:$806million

ExpectedAreasofImprovements

Ø Expansionoftheexistinglanding/take-offrunwayØ ExpansionofaircraftpatioareaØ ConstructionofnewpassengerterminalandexpansionofexistingoneØ ConstructionvehicleparkingØ ConstructioncargoterminalØ UpgradeofATCequipmentØ Supply/upgradeofARFFequipmentØ Planning,engineeringanddesign

services

Figure8–SalgadoFilhoAirport

7.5M

7.6M

7.7M

7.8M

7.9M

8.0M

8.1M

8.2M

8.3M

8.4M

2011 2012 2013 2014

7.8M

8.3M

8.0M

8.4M

Figure9–SalgadoFilhoAirportAnnualPassengerNumbers(InMillions)

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Contacts

Formoreinformationontheprojectslistedinthissection,pleasefindtherelevantcontactslistedbelow.

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

LeonardoCruzAirportsSecretaryCivilAviationSecretariat(SAC)SCS,quadra9,LoteCEd.ParqueCidadeCorporateTorreC,5Andar70308-200,Brasilia–DFTelephone:+55(61)3311-7117Email:Leonardo.cruz@aviacaocivil.gov.brRogerioTeixeiraCoimbraSecretary-RegulatoryPolicySecretariatCivilAviationSecretariat(SAC)SCS,quadra9,LoteCEd.ParqueCidadeCorporateTorreC,6Andar70308-200,Brasilia–DFTelephone:+55(61)3311-7234Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

LandonLoomisCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7249Email:Landon.Loomis@trade.govGenardHolmesBurityBusinessDevelopmentSpecialistConsulateGeneraloftheUnitedStatesAv.PresidenteWilson,14720030-020RiodeJaneiro,RJBrazilTelephone:55-21-3823-2401Email:[email protected]

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ROLIMADOLFOAMAROAIRPORT

Projectedimprovements:

Ø CreationofaRunwayEndSafetyArea(RESA)forbothrunwayapproaches

Ø Improvementstorunwayandtaxiwayincludingaddingnewlightingsystems

Ø ExpandingexistingapronØ Constructionofairsidedrainage

infrastructureØ ConstructionofpassengerterminalbuildingØ ConstructionofparkingfacilitiesØ InstallationofairsidetechnologiesØ UpgradestolandsideequipmentØ ImprovementstoATCandcommunications

equipmentØ ARFFequipmentØ Planning,engineering,design,andproject

managementservices

CAMPOSDEAMARAISAIRPORT

Projectedimprovements:

Ø ConstructionofaRunwayEndSafetyArea(RESA)forbothrunwayapproaches

Ø Improvementstorunwayandtaxiwayincludingnewlightingsystems

Ø ExpansionsofapronØ Constructionofairsidedrainage

infrastructureØ ConstructionofpassengerterminalbuildingØ ConstructionofparkingfacilitiesØ ImplementationofairsidetechnologiesØ UpgradestolandsideequipmentØ UpgradestoATCandcommunications

equipmentandARFFequipmentØ Planning,engineering,designandproject

managementservices

Figure10-RolimAdolfoAmaroAirport

Figure11-CamposDeAmaraisAirport

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UBATUBAAIRPORT

Projectedupgrades:

Ø CreationofaRunwayEndSafetyArea(RESA)forbothrunwayapproaches

Ø Improvementstorunwayincludingnewlightingsystems

Ø ReconstructionofapronØ ImprovementstoairsidedrainageinfrastructureØ ConstructionofnewpassengerterminalbuildingØ ConstructionofparkingfacilitiesØ UpgradestonavigationalsystemsØ UpgradestolandsideequipmentØ ATC/communicationsequipmentØ ARFFequipmentØ Planning,engineering,design,andproject

managementservices

BRAGANCAPAULISTAAIRPORT

Projectedupgrades:

Ø CreationofaRunwayEndSafetyArea(RESA)forbothrunwayapproaches

Ø Improvementstorunwayincludingnewlightingsystems

Ø ExpansionsofapronØ ConstructionofairsidedrainageØ Constructionofnewpassengerterminal

buildingØ ConstructionofparkingfacilitiesØ ImplementationofairsidetechnologiesØ LandsideequipmentupgradesØ ATCandcommunicationsequipment

upgradesØ ARFFequipmentØ Planning,engineering,design,andproject

managementservices

Figure12-UbatubaAirport

Figure13–BragancaPaulistaAirport

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ITANHAEMAIRPORT

Projectedupgrades:

Ø Implementationofsecurityfencingfortheairportperimeterarea

Ø UpgradestoroadwayØ Constructionofcommunications

stationØ ImprovementstodrainagesystemsØ ConstructionofanewterminalbuildingØ ConstructionofnewparkingfacilityØ Implementationofairfieldlighting

systemsØ Constructionofnewfirestation

CALDASNOVASAIRPORT

Projectedupgrades:

Ø ConstructionofnewairportterminalØ Expansion/reconstructionofrunwaysØ ConstructionofATCtowerØ Reconstruction/expansionofApron

areasØ ImplementationofNavigationalAids

(NAVAIDS)Ø UpgradestocommunicationsystemsØ UpgradestoairportoperatingsystemsØ UpgradestopowerandutilitysystemsØ Constructionofparkingareas

Figure14–ItanhaemAirport

Figure15–CaldasNovasAirport

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2.4 AdditionalStateAirportsExpectedtobeConcessioned

TheBahiaGovernmenthasbeenworkingwithSACtoadvancetheconcessionofseveralstateairports.SAC recentlyauthorizedtheconcessionoftheComandatubaAirport,locatedintheUnaMunicipality.SACalsoauthorizedtheconstructionoftheVitoriadeConquistaAirport,acityapproximately500KmfromSalvador.TheprojectincludestheconstructionofarunwayandrampthatcanaccommodateBoeing737s,aswellasnewpowerstations,lighting,securityandfire-fightingstations.InBahia,thereareseveralotherairports expected to be concessioned including the Barreiras, Caravelas/Teixeira de Freitas, andLencois/Guanambiairports.

TheGovernmentoftheStateofCearaisanticipatingtheconcessionofstateairportssuchasItapipoca,Iguatu,CamposSales,AracatiandCanindeAirports.Theseairportswillrequireengineering,designandprojectmanagementservices forconstructingand improvingairport terminals, runwaysandtaxiways,ATC towers, NAVAIDS, airport operating systems, baggage handling systems, security systems,communicationsystems,energyefficientsystems,aswellaspowerandutilitysystems.

Thereareotherstateairportsthatmaybeconcessionedinthenearfuture(2016or2017).Theofficialannouncementfortheseairportswilldependonhowlongittakesforeachstatetopreparetherequireddocumentation.TheZonadaMataAirportintheStateofMinasGeraishasreceivedthenecessarySACapprovals,whilethePousoAlegreandSaoLourencoAirports(MinasGerais)isawaitingSAC’sapproval.Furthermore,SAChasapprovedtheCamposdosGoytacazesAirportinRiodeJaneiroforconcession,aswellastheArarasandGuarujaairportsintheStateofSaoPaulo.

OtherstateairportsthatmaybeconcessionedincludeSaoPaulo,Goias,BahiaandRiodeJaneiro.

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Contacts

Formoreinformationontheprojectslistedinthissection,youmayreachouttooneofthecontactslistedbelow.

StateofSaoPauloProjectContact

U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

GiovanniPengueFilhoGeneralDirectorAgenciadeTransportedoEstadodeSaoPaulo(ARTESP)RuaIguatemi,105–13Andar–ItaimBibiSaoPauloCEP0145-011Telephone:55113465-2009Email:claudiampereira@sp.gov.brIsadoraChanskyCohenPPPBusinessDirectorSecretariadeGovernodoEstadodeSaoPauloPalaciodosBandeirantesSaoPauloEmail:iccohen@sp.gov.brRicardoBarbosaVolpiSuperintendentSaoPauloStateAirportsDepartment(DAESP)Av.DoEstado,777–6andar01107-901–SaoPauloSP,BrazilTelephone:55113312-9610/11Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPauloSP,BrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

LandonLoomisCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrasilTelephone:55-61-3312-7249Email:Landon.Loomis@trade.govGenardHolmesBurityBusinessDevelopmentSpecialistConsulateGeneraloftheUnitedStatesofAmericaAv.PresidenteWilson,14720030-020RiodeJaneiro,RJBrazilTelephone:55-21-3823-2401Email:[email protected]

StateofGoias StateofBahia StateofCearaEvandroMagalMayorofCaldasNovasAvenidaAntonioCoelhodeGodoy,salassuperiores,centroCEP:75.690-000CaldasNovas,BrazilTelephone:55643454-6853 RagnarJosePradoCaldasNovasAirportDirectorTelephone:55643454-3582

MarcusCavalcantiSEINFRASecretaryCAB,4Avenida,No.440,ParalelaCEP:41.745-000Salvador,Bahia-BrazilTelephone:55713115-2106Email:marcus.cavalcanti@seinfra.ba.gov.brDenissondeOliveiraDirectorofTerminalsandAirports

AndreMacedoFacoSEINFRASecretaryCearaStateGovernmentAve.GeneralAlfonsoAlbuquerqueLimas/n–Ed.SEINFRA/SRH–2Andar–CEP60822-325Fortaleza,Ceara,BrazilTelephone:853216-3713/3216-3719Email:[email protected]

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SecretariadeInfraestruturaCAB,4Avenida,No.440,ParalelaCEP:41.745-000Salvador,Bahia-BrazilTelephone:55713115-8506Email:[email protected]

JoaquimFirminoFilhoExecutiveSecretarySEINFRACearaStateGovernmentAve.GeneralAlfonsoAlbuquerqueLimas/n–Ed.SEINFRA/SRH–2Andar–CEP60822-325Fortaleza,Ceara,BrasilTelephone:853216-3719Email:[email protected]

2.5 PrivateAirportandAirHubDevelopmentsinBrazil

Given the growing demand for general aviation operations, private investors seek to explore thepossibilityofconstructingnewprivateairports.SAChasanestablishedprocessthattheprivatesectormustfollowinordertoobtaintheproperapprovalsandlicensesforconstructingandoperatingprivateairports.Currently,thereisoneprivateairportdevelopmentprojectunderway,whichistheSaoPaulo–Catarina Executive Airport. The development of private executive airports for general aviation andtourism purposes will likely call for the services of FBO operators, aircraftmaintenance services andequipment,andaviationtechnologiesastheprivatesectorbeginstoinvestinprivateairportdevelopmentprojects.

2.5.1 SaoPauloCatarinaExecutiveAirport

JHSF is a major Brazilian commercial and real estatedevelopment corporation with substantial assetsthroughoutBraziland theU.S. JHSF is in theprocessofconstructingastate-of-the-artgeneralaviationexecutiveairport,TheSaoPauloCatarinaExecutiveAirport, in theCity of Sao Roque about 35 Kmwest of the City of SaoPaulo. The new executive airport is designed toaccommodate general aviation flights and executiveoperations,giventhatgeneralaviationoperationsatthesurroundingairportsisverylimited.

SummaryoftheSaoPauloCatarinaExecutiveAirport

Ø Designedtoaccommodategeneralaviationflights

Ø WillimproveairportinfrastructureØ 24-houroperationwithouthourlyrestrictionsØ Runwaywillspan2,470metersx45metersØ Accommodateslargebusinessjets,suchastheGulfstreamG650andG550,Bombardier’sGlobal

6000,andDessaultFalcon’s8xandFalcon2000

Figure 16 - Sao Paulo Catarina ExecutiveAirport

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Ø 14-minutehelicopterflightfromSaoPauloØ Includes50,000squaremetersofhangarsand50,000squaremetersofapronsinthefirstphaseØ FeaturesaGeneralAviationTerminal(GAT)forexecutiveaviation,equippedwithcomplete

infrastructureinsupportofpassengerandcrew,withbaggageinspectionequipmentØ ServiceandMaintenanceCenterØ Helipadofferedtopassengersforconnectiontothestatecapitalforbusiness

Expectedequipmentandservicesneededforthisproject:

Ø FixedBaseOperators(FBO)Ø NavigationalSystemsØ ATCtowerequipmentØ CommunicationssystemsØ ICTsystemsØ BaggageinspectionequipmentØ Maintenance,Repairs,andOverhaul(MRO)services.

Contacts

Formoreinformationonthisproject,pleasereachouttooneoftheprojectcontactsbelow.

ProjectContact U.S.TradeandDevelopmentAgency U.S.CommercialServiceBrazil

KathleenElizabethMarcusWeissJHSFAnalistaComercialAv.MagalhaesdeCastro,4.800-27Andar–Torre03CidadeJardimCorporateCenter–ContinentalTowerCEP05502-001–SaoPaulo/SPTelephone:55113199-0310Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPauloSP,BrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

LandonLoomisCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7249Email:Landon.Loomis@trade.govGenardHolmesBurityBusinessDevelopmentSpecialistConsulateGeneraloftheUnitedStatesofAmericaAv.PresidenteWilson,14720030-020RiodeJaneiro,RJBrazilTelephone:55-21-3823-2401Email:[email protected]

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2.5.2 LATAMAirlinesGroupS.A.

LATAM Airlines Group S.A. recently became one of thelargest airline groups in the world, as a result of themergerbetweenTAMS.A.andLANAirlinesS.A.

In 2015, LATAM announced the launch of feasibilitystudies to establish the first international and domestichubinNortheastBrazil.LATAMisconsideringthreecitiesas potential hosts for the hub: Fortaleza, Natal andRecife.

The main objective is to expand LATAM’s operationsbetweenEuropeandSouthAmerica,andthegeographicpositionofNortheastBrazilservesastrategiclocationtodoso.

TheNortheast hubwill offer significantly shorter flightsbetween Brazil and the U.S, and between Brazil andEurope, compared to SaoPaulo andRiode Janeiro. Thelocationwill facilitatebetterconnectionsandconnectingtimes,creatingefficiencyfortheairline.

ExpectedCategoryofAirportSystemsandServices

Ø CommunicationsystemsØ AirlineandairsideoperationalsystemsØ LandsideoperationalsystemsØ SafetyandsecuritysystemsØ AirportadministrativesystemsØ Otherequipmentandprofessionalservicestobedeterminedastheprojectdevelops

Figure17-TAMAirlines

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Contacts

Formoreinformationonthisproject,pleasereachouttooneoftheprojectcontactsbelow:

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

RuyAmparoVicePresidentofOperationsandMaintenanceLATAMAirlinesGroupAvenidaJurandir,856HangarVIICEP04072000SaoPaulo–SPBrazilTelephone:55115582-8817Email:Ruy.amparo@tam.com.brAudreyMouraoHilzendegerCoordenadoraOTPEstrategicoLATAMAirlinesGroupAvenidaJurandir,856HangarVIICEP04072000SaoPaulo–SPBrazilTelephone:55114517-4051Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

LandonLoomisCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7249Email:Landon.Loomis@trade.govGenardHolmesBurityBusinessDevelopmentSpecialistConsulateGeneraloftheUnitedStatesofAmericaAv.PresidenteWilson,14720030-020RiodeJaneiro,RJBrazilTelephone:55-21-3823-2401Email:[email protected]

2.6 RegionalAviationDevelopmentProgram(PDAR)

InanefforttoprovideaccesstoairtravelforBrazilianslivinginsmallercities,theGovernmentannouncedtheRegionalAviationDevelopmentProgram(PDAR)withinfrastructureinvestmentsof$2.3billion.ThefirststageofthePDARwillbenefit270outof689localandregionalairportsacrossBrazil,allowingthemtoreceivecommercial flights.Theairportownersandoperators,mostlystatesormunicipalities,wereadvised to submit an analysis of their investment needs in terms of financial viability and physicalinstallationssuchasinfrastructure,runways,aprons,terminals,ATCandaviationequipment.

ThePDARisathree-phraseprocessincluding:

Ø Feasibilitystudies;Ø Projectviabilityanalysis;andØ Preliminaryengineeringforprojectdevelopment.

SACiscurrentlyinthesecondphaseoftheprocess,projectviabilityanalysis,forallairportspreviouslyselected.Beforetheendof2016,SACwillmoveontothepreliminaryengineeringphaseforairportsthatrepresentviableopportunitiesforupgradesandpotentialconcessions.

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TheFNACFundreceives itsrevenuesfromairporttariffsandconcessioncontractsfrommajorairportsacross thecountry.TheFNAC likelyhasa substantialamountof fundson theorderof$2.5billion,asrevenuesarecollectedbytheMinistryofFinance,however,thefundshavenotyetbeenreleasedbytheGovernment.SACcurrentlyisawaitingtheMinistryofFinance’sreleaseoffundsinordertosupportthePDAR.

OnceSACreachesanagreementwithastateormunicipality,theseGovernmentscanannouncethepublictenderfortheirrespectiveairportprojects.Thetypeofupgradesexpectedateachairportvaries;somerequire rehabilitation of terminals and runways, while others require construction of new terminals,runways, ATC towers, navigational aids (NAVAIDS), energy and central utility systems and terminalsystems.SACexpectstorollouttheactualauthorizationfortheregionalairportsinphasesandasfundingbecomesavailablefromtheFNAC.

TheBrazilianstatesthathavebeenmostengagedinthisprocessareSaoPaulo,Goias,Bahia,Ceara,RiodeJaneiroandMinasGerais.Additionally,theGovernmenthasannouncedthatitwilleasetherestrictionsfor operators of private airfields. Private airfields will now be allowed to collect landing fees fromexecutiveaircraftandairtaxis,andtheycaninvestinandoperatecertaincommercialfacilitiessuchasshopsandrestaurants.Thisliberalizationisexpectedtostimulatefurtherinvestmentsinbothnewprivateairfieldsandthemodernizationofexistingones.

Figure18–RegionalAirportDevelopmentProgram(InBrazilianReales)

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Contacts

FormoreinformationonthePDAR,pleasereachouttooneoftheprojectcontactsbelow.

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

LeonardoDantasCruzAirportsSecretaryCivilAviationSecretariat(SAC)SCS,quadra9,LoteCEd.ParqueCidadeCorporateTorreC,5Andar70308-200,Brasilia–DFTelephone:+55(61)3311-7119Email:Leonardo.cruz@aviacaocivil.gov.brPauloHenriquePossasDirectorofAirportsSecretariadeAeroportosCivilAviationSecretariat(SAC)SCS,quadra9,LoteCEd.ParqueCidadeCorporateTorreC,5Andar70308-200,Brasilia–DFTelephone:+55(61)3311-7119/8103-4140Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

LandonLoomisCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7249Email:Landon.Loomis@trade.govGenardHolmesBurityBusinessDevelopmentSpecialistConsulateGeneraloftheUnitedStatesofAmericaAv.PresidenteWilson,14720030-020RiodeJaneiro,RJBrazilTelephone:55-21-3823-2401Email:[email protected]

2.7 BrazilAviationOverviewandRegulatoryFramework

Brazilhas2,463airportsregisteredbythenationalairportsauthority,NationalAgencyofCivilAviation(ANAC-AgenciaNacionaldeAviacaoCivil).Ofthose,1,806operateprivatelyand657operatepublically.ThemaincommercialairlinesareAzul,GOLAirlinesandTAMAirlines(recentlymergedwithLANtoformtheLATAMGroup).TheseairlinesprovideservicetomajorcitiesacrossBrazil.Overthelasttenyears,themarkethasgrownmorecompetitive,drivingdownthecostofairtravel.AccordingtoANAC,morethanfivemillionpassengerstraveledbetweentheU.S.andBrazilin2014,makingBraziloneofthetopteninternationaldestinationsfortraveltoandfromtheUnitedStates.

The Brazilian regulatory agencies oversee concessionaires and their provision of public services. Inadditiontomonitoringservicequality,theregulatoryagenciesadministerthedevelopmentofconcessionprogramsandcontracts,theestablishmentofaviationstandardsandtheimpositionofpenalties.

The Secretariat of Civil Aviation (SAC) organizes the operation and development of all civil aviationactivities.Composedofaviationauthoritiesandinstitutions,SAC’sgoalistosupportbothmilitaryandcivilaeronauticalandaviationactivitiesinBrazil.SACdrawsfromseveralfundssuchastheNationalCivil

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AviationFund(FNAC)whichallocatesanddistributesresourceswithinthecivilaviationsystem,andtheFederalProgramforAirportAssistance(PROFAA)whichpromotesflightsafetyandpassengercomfort.

AsakeyagencywithinSAC,ANACisresponsibleforregulatingthesecurityandsafetyofaircraft.Ithasauthorityonmonitoring,licensing,concessioningandoperationsofaerodromesandairports.AlsounderSAC’s purview, Infraero provides infrastructure, airport and air navigation services. Infraero is alsochargedwithdevelopingalistofairportimprovementprojectsonanannualbasisaspartoftheagency’sAirport Infrastructure Investment Plan. The investment plan is approved by SAC and theMinistry ofFinanceaspartofthenationalbudget.

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HIGHWAYS

3. HIGHWAYS3.1 HighwayConcessionProjectOpportunities

InJune2015,theBrazilianGovernmentselected15highwaycorridorsascandidatesforconcession.U.S.companiesmaybenefitfromtheseconcessions,especiallyintermsofsupplyingITSsystemsandheavydutyconstructionequipment.TheGovernmentmayannounceadditionalconcessionsin2016andU.S.companiesshouldfollowthisprocesscloselytodeterminehowtheycanbecomeinvolved.

Newhighwayoperatorsarenotboundbytediouspublictenderingprocedures,allowingU.S.companiesto engage directly with concessionaires, as well as those competing for new contracts in 2016. U.S.companiesshouldkeepinmindthathighwayoperatorsfacestricttimelines,andwillrequirerapiddeliveryofproductsandservices.

OnebenefitforU.S.companiesisthathighwayoperatorsarenotprocuringsolelybasedonlowcost;theyarelookingtoacquirequality,dependablehighwaytechnologysuchasITSandICTsystemstosupportrevenue collection operations. Additionally, the Brazilian Government selected standards from theNational Transportation Communications for Intelligent Transportation Systems Protocol (NTCIP) forimplementingITSsystemsinthecountry.Thetypeofequipmentandservicesrequiredbyeachhighwayconcessionprojectvariesandthatinformationwillnotbeavailableuntiltheofficialbiddingbegins.

Thefollowingprovidesalistoffeatures,equipmentandsystemsthatwillmostlikelyberequiredforthehighwayconcessionprojects.

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ITSSystemsNeeded

Ø ImplementationofdigitalmonitoringsystemthroughCCTV-IVAfor100%highwaycoverageØ Radioanddigitalsystemsforthedisseminationofhighwaysconditions(events,closures,

weather,etc.)Ø TransmissionofhighwayrelatedinformationtocontrolcenterØ Implementationofdigitalsystemsformanaginghighwayprojectssuchasinformationexchange

betweenoperatorandhighwayusers,highwayassistanceprogramsforallusers(ambulance,towing,repairservices)

Ø Accesstohighwayinformation24/7throughWi-FiØ Implementationofweigh-in-motionsystemsØ ImplementationoftrafficmanagementandcontrolcentersØ Implementation/upgradeofelectronictollcollectionsystems(ETC)Ø ImplementationofvariablemessagesignsystemsØ Implementationofa“pointtopoint”tollcollectionsystemØ ICTequipmentsuchasservers,computers,softwareandhardwaretosupporttheoperationand

maintenanceofthehighways

Becausehighwayoperatorsareprivateentities,theycanengagedirectlywithforeignfirms,bypassingthefederalandstateprocurementprocesses,whichtranslatesintoalessbureaucraticenvironmentforU.S.companies. Some highway operators have import/export licenses that allow them to introducetechnologiesandequipmentbasedontheirdemands,thusreducingtheneedforintermediaryservicesorlocalagents.Thisdynamicfacilitatestheoperators’abilitytoacquireequipmentdirectlyfromforeigncompanies.

ThekeyforU.S.firms istoengageearlybymakingcontactwithprivatehighwayoperators(consortia)whowillrequiretechnologiesandservicestofulfilltheircontractualobligationswiththestateandfederalGovernments.

3.2 HighwayConcessions

OnJune9,2015,theGovernmentannouncedthesecondroundoftheLogisticsInvestmentProgram(PIL),investingininfrastructuretodriveeconomicgrowth.Thesecondstagewilldelegate7,000Kmofhighwaysand roadways to theprivate sector,withanestimated investmentof$22billion.Of thatbudget,$16billionwilltargetnewhighwayconcessionsforcontractsexecutedthrough2016,andtheremaining$6billionwillbe invested inexistingconcessions.Theprimarygoalsof theseconcessionsare to increasecapacityandimprovesafety.

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Thefigurebelowdepictshighwaysexpectedtobeconcessionedin2016.

Figure19–HighwaystobeConcessionedin2016

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3.3 2016HighwayConcessions–FirstRound

Thefollowingprovidesanoverviewofeachhighwayproject,whichmaypresentopportunitiesforU.S.firmstoexportITStechnologies.

Figure20–2016HighwayConcessions(FirstRound)

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3.3.1 ProjectBR-476/480(PR/SC)

ProjectDescription

TheMinistryofTransportpublishedtheconcessionplanforthestretchofhighwaysBR-476/480(PR/SC),withaninvestmentof$1.4billion.TheprojectwillextendfromtheCityofLapaalongBR-476totheCityofUniaodaVitoriaandBR-282/BR-480fromUniaodaVitoriatotheCityofChapeco.TheprojectaimstofacilitatethetransportofpoultryandagriculturalproductstotheSouthernports.

Theprojectstretchesacross493.3Km,featuring:

Ø BR-476/PR,betweenLapaandUniaodaVitoria;Ø BR-153/PR/SC,betweenUniaodaVitoriaandthejunctionwithBR-282;Ø BR-282/SC,betweenthejunctionwithBR-153andthejunctionwithBR-480;andØ BR-480/SC,betweenthejunctionwithBR-282andChapeco.

ProjectBR-476/480(PR/SC)willrequireengineeringanddesign,paving,theconstructionofinterchanges,access points, highway shoulders, drainage, implementation of toll collection plazas, lane markings,lighting, safety measures, highway assistance program, deployment of ITS systems, environmentalmitigationandroadwaymaintenance.

Improvements

The upgrades will enhance highway capacity through road widening, mitigate congestion, improveoperationalmeasures,maintenance,implementITSsystemsandimplementtollcollectionsystems.

DurationofConcession

30years

EstimatedInvestment

$1.4Billion

Figure21-BR-476/480(PR/SC)

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EnvironmentalLicense

TheLogisticsandPlanningCompany(EPL)isresponsibleforobtainingtheadvancelicense(LP)andsitelicense(LI)forthehighwayimprovementworks.

ProjectStatus

TheNationalLandTransportationAgency(ANTT)hassubmittedadraftbidnotice,concessionplanandstudiescorrespondingtoparticularhighwaystretchestotheBrazilianFederalCourtofAudit (TCU)forreviewandapproval.

3.3.2 ProjectBR-364/365(GO/MG)

ProjectDescription

ProjectBR-364/365comprisesatotal lengthof437Km,includingtheBR-364/GO/MGstretchbetweentheintersectionwithBR-060A(Jatai),untilthejunctionwithBR-153A/262A(ComendadorGomes).Theproject calls for engineering and design services, paving, construction of interchanges, access points,highwayshoulders,anddrainage, the implementationof toll collectionplazas, lanemarkings, lighting,safety measures, and highway assistance program, as well as the deployment of ITS systems,environmentalmitigationandroadwaymaintenanceandoperation.

Improvements

TheimprovementsaimtoconnectthegrainproductionregioninSouthernGoiastotheTrianguloMineiroarea.Theprojectwillenhancehighwaycapacitythroughroadwidening,mitigatecongestion,enhanceoperationalmeasures,maintenance,implementITSsystemsandimplementtollcollectionsystems.

DurationofConcession

30years

EstimatedInvestment

$903million

EnvironmentalLicense

Figure22-BR-364/365(GO/MG)

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EPL is responsible for obtaining the advance license (LP) and the site license (LI) for the highwayimprovementworks.

ProjectStatus

Atapublichearingin2015,ANTTpresenteddraftsofthebidnoticeandconcessionagreementunderthehighwayexplorationprogram,aswellasfeasibilitystudiesrelatedtotheconcessionofa437-KmstretchofhighwaysBR-364/365/GO/MG,betweenthe junctionwithBR-060inJataí/GOandthejunctionwithLMG-479 inUberlandia/MG.Theproject ispendingapproval fromtheBrazilianFederalCourtofAudit(TCU)priortothepublicannouncementforauction.

3.3.3 BR-364/060(MT/GO)

ProjectDescription

ProjectBR-364/060expandshighwaylengthby704Km,includingtheBR-364andBR-060betweenGoiasandMato Grosso. The project required engineering and design services, paving, the construction ofinterchanges,accesspoints,highwayshoulders,drainage,implementationoftollcollectionplazas,lanemarkings,lighting,safetymeasuresandhighwayassistance,deploymentofITSsystems,environmentalmitigationandroadwaymaintenance.

Improvements

ThegoalofthisprojectistobetterconnecttheCentral-WestRegionwithportsintheNorthandSouthofBrazil by expanding highway capacity, mitigating congestion, implementing operational measures,conductingmaintenance and conservation, adding toll collection infrastructure and implementing ITSsystems.

DurationofConcession

30years

EstimatedInvestment

$1.3billion

Figure23-BR-364/060(MT/GO)

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EnvironmentalLicense

EPLisresponsibleforobtainingtheadvancelicense(LP)andthesitelicense(LI)fortheroadduplicationandimprovementworks.

ProjectStatus

TheprojectisstillundertheearlystagesofthePMIprocess.

3.3.4 ProjectBR-163(MT/PA)

ProjectDescription

ProjectBR-163expandsthelengthof976Kmofhighwayincludingthefollowingroads:

Ø BR-163/MT/PA,junctionwithMT-220tothejunctionwithBR-230(A)Ø BR-230/PA,junctionwithBR-163(B)(CampoVerde)untilMiritituba

The project calls for engineering and design, paving, the construction of interchanges, access points,highwayshoulders,anddrainage, the implementationof toll collectionplazas, lanemarkings, lighting,safetymeasures,highwayassistanceprogram,deploymentofITSsystems,environmentalmitigationandroadwaymaintenance.

Improvements

Theobjectivewiththisprojectistostreamlinethemovementofgrainandotheragriculturalproductstothenorthernports,anditwillbeapproachedbywideningthehighwaytoincreasecapacity,mitigatingcongestion, implementing operational measures for the highway, conducting maintenance andconservation,collectingoftollsandimplementingITSsystems.

DurationofConcession

30years

Figure24-BR-163(MT/PA)

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EstimatedInvestment

$2.1billion

EnvironmentalLicense

EPLisresponsibleforobtainingtheadvancelicense(LP)andthesitelicense(LI)fortheroadduplicationandimprovementworks.

ProjectStatus

TheprojectremainsintheearlystagesofthePMIprocess.

3.4 2016HighwayConcessions–SecondRound

The following presents a summary of highway projects expected for the second round of highwayconcessionsin2016.

Table2HighwayConcessionsfor2016

Highways DescriptionBR-101/BA 199KmofhighwayBR101fromFeiradeSantana(StateofBahia)toGandu(State

ofBahia).BR-101/SC 220KmofhighwayBR101fromPalhoca(StateofSantaCatarina)tothestateline

betweenSantaCatarinaandRioGrandedoSul.BR-262/MS 327KmofhighwayBR262fromCampoGrande(StateofMatoGrossodoSul)to

TresLagoas(StateofMatoGrossodoSul).BR-267/MS 249KmofhighwayBR267fromNovaAlvoradadoSul(StateofMatoGrossodoSul)

toPresidenteEpitacio(StateofSaoPaulo).BR-280/SC 307KmofhighwayBR280fromPortoUniao(StateofSantaCatarina)tothePortof

SaoFranciscodoSul(StateofSantaCatarina).BR-364/RO/MT 806KmofhighwayBR364fromPortoVelho(StateofRondonia)toComodoro(State

ofMatoGrosso).BR-101/232/PE 564KmofhighwayBR101fromthestatelinebetweenParaibaandPernambucoto

the state line between Pernambuco and Alagoas; and a second segment (overhighwayBR232)fromRecife(StateofPernambuco)toCruzeirodoNordeste(StateofPernambuco).

BR-262/381/MG/ES 305KmofhighwaysBR262andBR381fromBeloHorizonte(StateofMinasGervais)tothestatelinebetweenMinasGervaisandEspiritoSanto.

BR-282/470 455KmofhighwaysBR470andBR282crossingtheStateofSantaCatarinatothePortsofNavegantesandItajai(StateofSantaCatarina)

BR-101/493 357KmofhighwaysBR101,BR493andBR456fromUbatuba(StateofSaoPaulo)toBR040intheStateofRiodeJaneiro.

BR-101/116 581KmofhighwaysBR101,BR116,BR290andBR386fromPortoAlegre(StateofRioGrandedoSul)toCarazinho(StateofRioGrandedoSul),Camaqua(StateofRioGrandedoSul)andthestatelinebetweenRioGrandedoSulandSantaCatarina.

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TheFigurebelowrepresentsthesecondroundofhighwayconcessionprojectsin2016.

Figure25-UpcomingHighwayConcessions(2016)

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3.4.1 ProjectBR-101/BA

ProjectDescription

ProjectBR-101/BAinvolves199Kmofhighway,specificallythesegmentofBR-101betweenGandu/BAandthejunctionwithBR-324.ThegoalistoduplicatethestretchbetweenFeiradeSantana/Ganduandimprove cargo transportation between theNortheast and the Southeast Regions of the country. Theprojectwillcallforengineeringanddesignservices,paving,constructionofinterchanges,accesspoints,highway shoulders, drainage, implementation of toll collection plazas, lane markings, lighting, safetymeasures, highway assistance program, deployment of ITS systems, environmental mitigation androadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$516million

ProjectStatus

PublicAnnouncementexpectedin2016

Figure26BR-101/BA

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3.4.2 ProjectBR-101/SC

ProjectDescription

ProjectBR-101/SCincludes220Kmofroad,specificallyBR-101betweenthebridgeovertheMadreRiverandtheSantaCatarinaandRioGrandedoSulborder.Theobjectiveistoincreasecapacityandimproveroadsafety.Theprojectcallsforengineeringanddesignservices,paving,constructionofinterchanges,access points, highway shoulders, drainage, implementation of toll collection plazas, lane markings,lighting, safety measures, highway assistance program, deployment of ITS systems, environmentalmitigationandroadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$355million

ProjectStatus

PublicAnnouncementexpectedin2016

Figure27-BR-101/SC

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3.4.3 ProjectBR-262/MS

ProjectDescription

BR-262/MSexpandsthelengthof327KmofhighwayincludingthestretchoftheBR-262betweenthejunctionwithBR-163(CampoGrande)andtheMS/SP(MatoGrossodoSul/SaoPaulo)border,withthepurposeofwideningtheCampoGrande/SPborderlinkandreducingthecostsoftransportingagriculturalandlivestockproductionviatheportsoftheSouthernRegion.

DurationofConcession

30years

EstimatedInvestment

$806million

ProjectStatus

PublicAnnouncementexpectedin2016

Figure28-BR-262/MS

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3.4.4 ProjectBR-267/MS

ProjectDescription

ProjectBR-267/MSexpandsthelengthofhighwayby249Km,includingtheBR-267distancebetweenthejunctionwithBR-163andtheMS/SPborder.ThegoalistowidenthehighwaybetweenMatoGrossodoSulandtheSaoPaulobordertobetterconnectthestatesandreducethecostsofmovingagriculturalandlivestockproductionviatheSouthernports.Theprojectcallsforengineeringanddesignservices,paving,theconstructionofinterchanges,accesspoints,highwayshoulders,drainage,theimplementationoftollcollectionplazas,lanemarkings,lighting,safetymeasures,highwayassistanceprogram,deploymentofITSsystems,environmentalmitigationandroadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$645million

ProjectStatus

PublicAnnouncementexpectedin2016

Figure29-BR-267/MS

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3.4.5 ProjectBR-280/SC

ProjectDescription

ProjectBR-280/SC involves307Kmofhighway featuring theBR-280 stretchbetween thePortof SaoFranciscodoSulandtheSantaCatarina-Paranaborder(PortoUniao/UniaodaVitoria).ThisprojectwillimprovetransportofagriculturalproductsfromSantaCatarinaviatheSouthernports.ProjectBR-280/SCwillrequireservicesrelatedtoengineeringanddesign,paving,theconstructionofinterchanges,accesspoints,highwayshoulders,drainage,theimplementationoftollcollectionplazas,lanemarkings,lighting,safetymeasures,highwayassistanceprogram,deploymentofITSsystems,environmentalmitigationandroadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$677million

ProjectStatus

PublicAnnouncementexpectedin2016

Figure30-BR-280/SC

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3.4.6 ProjectBR-364/RO/MT

ProjectDescription

ProjectBR-364/RO/MTexpandsthehighwayby806Km,particularlythestretchofBR-364betweenthejunctionwithBR-174 (A) atComodoroandPortoVelho (UlissesGuimaraesaccess). Thepurpose is toimprovetheintegrationofthegrain-producingregionsofMatoGrossoandRondoniaandthewaterwayof the Madeira River. The project calls for services related to engineering and design, paving, theconstruction of interchanges, access points, highway shoulders, drainage, the implementation of tollcollectionplazas,lanemarkings,lighting,safetymeasures,highwayassistanceprogram,deploymentofITSsystems,environmentalmitigationandroadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$2.0billion

ProjectStatus

PublicAnnouncementexpectedin2016

Figure31-BR-364/RO/MT

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3.4.7 ProjectBR-101/232/PE

ProjectDescription

The purpose of this project is to open access to the Suape Port and widen the road at Cruzeiro doNordeste.BR-101/232/PE involves564Kmofhighway,specifically, thestretchofBR-101betweenthePB/PE (Paraiba/Pernambuco) border and the PE/AL (Pernambuco/Alagoas) border. The new RecifeMetropolitanArchfromCabodeSantoAgostinhotoIgarassu,andBR-232betweenthejunctionwithBR-101andCruzeirodoNordeste/PE.Theprojectcallsforservicesrelatedtoengineeringanddesign,paving,theconstructionofinterchanges,accesspoints,highwayshoulders,drainage,theimplementationoftollcollectionplazas,lanemarkings,lighting,safetymeasures,highwayassistanceprogram,deploymentofITSsystems,environmentalmitigationandroadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$1.3billion

ProjectStatus

PublicAnnouncementexpectedin2016

Figure32-BR-101/232/PE

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3.4.8 ProjectBR-262/381/MG/ES

ProjectDescription

ThepurposeofthisprojectistowidenthestretchbetweentheBeloHorizonteandEspiritoSanto(ES)bordertoimprovesafetyandreducetransportationcosts.ProjectBR-262/381/MG/ESinvolvesalengthof305Km,particularlytheBR-262stretchbetweenthejunctionwithBR-381(JoaoMonlevade),aswellas the junction with BR-101 (B). It also features BR-381, between the junction with BR-262 (JoaoMonlevade)andthejunctionwithBR-262(A)(BeloHorizonte).

DurationofConcession

30years

EstimatedInvestment

$613million

Figure33-BR-262/381/MG/ES

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3.4.9 ProjectBR-282/470

ProjectDescription

Theobjectiveforthisprojectistowidenthestretchbetweentheagro-industrialSantaCatarinaregiontothe Southern ports. BR-282/470 involves 455 Km of highway including the BR-470 stretch betweenNavegantes/SCandtheSantaCatarinaandRioGrandedoSulborder.ItalsofeaturesBR-282betweenthejunctionwithBR-470andthejunctionwithBR-153.

Theprojectcallsforservicesrelatedtoengineeringanddesign,paving,theconstructionofinterchanges,accesspoints,highwayshoulders,drainage,theimplementationoftollcollectionplazas,lanemarkings,lighting, safety measures, highway assistance program, deployment of ITS systems, environmentalmitigationandroadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$1.0billion

ProjectStatus

PublicAnnouncementexpectedin2016

Figure34-BR-282/470

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3.4.10 ProjectBR101/493

ProjectDescription

BR101/493involves357Kmofroads,specificallythestretchofBR-101betweenthejunctionwithBR-465(B)/RJ-071/097(SantaCruz)andPraiaGrandeintheMunicipalityofUbatuba/SP;BR-465betweenthejunctionwithBR-101andthejunctionwithBR-116;andBR-493betweenthejunctionwithBR-101andthejunctionwithBR-040/116(B).

Thepurpose is toexpandroadcapacityof theRio-SantosstretchuntilUbatuba,a tourist road,withaconcessionfortheRiodeJaneiroMetropolitanArch.Theprojectrequiresservicesrelatedtoengineeringand design, paving, interchange construction, access points, highway shoulders, drainage, theimplementation of toll collection plazas, lanemarkings, lighting, safetymeasures, highway assistanceprogram,deploymentofITSsystems,environmentalmitigationandroadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$1.0billion

ProjectStatus

PublicAnnouncementexpectedin2016

Figure35-BR-101/493

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3.4.11 ProjectBR101/116

ProjectDescription

TheobjectiveistowidentheProducaoMotorway(ProductionHighway)untilCarazinhoandtowidenthePortoAlegre-Camaquastretch.

BR101/116involves581KmofhighwayincludingthelengthofBR-101betweentheborderofRioGrandedoSulandSantaCatarinaStatesandOsorio/RS;BR-116,betweenthejunctionwithBR-290(B)(toArroiodos Ratos) and the junction with BR-470/RS-350 (to Camaqua); BR-290, between Osorio/RS and thejunctionwithBR-116(toGuaiba)andBR-386betweenthejunctionwithBR-116(B)/290(PortoAlegre)andthejunctionwithBR-377(A)(toCarazinho).

Thisconcessioncallsforservicessuchasengineeringanddesign,paving,interchangeconstruction,accesspoints,highwayshoulders,drainage,theimplementationoftollcollectionplazas,lanemarkings,lighting,safetymeasures,highwayassistanceprogram,deploymentofITSsystems,environmentalmitigationandroadwaymaintenance.

DurationofConcession

30years

EstimatedInvestment

$1.0billion

ProjectStatus

PublicAnnouncementexpectedin2016

C

Figure36-BR-101/116

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Contacts

Formoreinformationontheprojectslistedinthissection,youmayreachouttotheprojectcontactslistedbelow.

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

YoshihiroNemoto,MEngSuperintendenciaExecutiva-SUEXECoordenadorExecutivoAgenciaNacionaldeTransportesTerrestres–ANTTSCESTreco3,Lote10Polo8doProjetoOrla70200-003BrasiliaDFTelephone:+55(61)3410-1725Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

AndrewGatelyCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7403Email:[email protected],Telecommunications,E-CommerceU.S.Consulate–SaoPauloR.ThomasDeloney,381SaoPaulo,BrazilTelephone:+55113250-5339Email:[email protected]

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3.5 StateofSaoPauloHighwayConcessionProgram

In2015,SaoPauloissuedapublicannouncementforconcessionof2,266Kmofstatehighways,whichshouldexpandthestatehighwaynetworkby25%.Thehighwayconcessionsaredividedasfollows:

Ø BlockAwith116KmØ BlockBwith481KmØ BlockCwith1,097KmØ BlockDwith572Km

Theprivatesectorwilllikelyinvest$3.5billioninthisinitiative.

Table3StateofSaoPauloHighwayConcessionsfor2016

HighwayBlocks Description

BlockA BlockAincludeshighwaySP-55throughPraiaGrandeandItaririwithtwotollplazas.

BlockB BlockBconsistsofhighwaySP-324fromVinhedoaCampinas,SP-079fromSaltoaSorocaba,SP-264fromSorocabatoPilardoSul,andSP-250fromPilardoSulaRibeira,includingseventollcollectionplazas.

BlockC BlockCconsistsofhighwaySP-255fromAraraquaratoAvare,SP-191andSP-304fromSaoManuelaRioClaro,SP-334fromCristaisPaulistaaRifaina,andhighwaySP-351fromBatataistoSantoAntoniodaAlegriaincludingseventeentollcollectionplazas.

BlockD BlockDconsistsofhighwaySP-333fromBorbonematoFloriniapassingthroughMariliaeAssis,includingsegmentsontheViaNortehighwayconcessionandthetotalnumberoftollcollectionplazasisestimatedtobeeight.

Financing will consist of 50% of the consortium’s capital and 50% long-term financing, debentureinitiativesandotherfinancialarrangements.Thisprojectwillinvolveroadwidening,upgradestoexistinghighways and construction of new highway segments. Services and technology required includeengineering, design, construction, implementation of electronic toll collection systems, highwaymonitoring systems, control center equipment, highway information systems, variable message signsystems and other ITS equipment for the operation andmaintenance of the highways. The type andquantityofITSsystemswillvarybyhighwayprojectandthatinformationwillbecomeavailablewhenthepublicbidsareannounced.

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3.6 IntegratedNetworkfortheCollectionofElectronicInformationProject

TheStateSecretariatofInfrastructureandLogistics(SEIL)fortheStateofParanaoverseesinfrastructureplanning,developmentoflogisticsplansandprojectimplementation.SEILisintheprocessofdevelopingalogisticsplatformthatwilllikelyfeaturetheuseofITSsystemsforhighwaystoimprovetrafficconditions,safety,efficiency,aswellasmonitoringandtrackingofvehicularmovements.

SEILisdevelopinganintegratednetworkofelectronicdatacollection,knownasRedeIntegradadeColetaEletronicadeInformacoes(RECEIParana).SEILiscoordinatingaplanofactioninvolvingtheapplicationofITSandICTtechnologiesnecessaryforcreatingasystematicmethodofdatacollection.

TheproposednetworkinvolvesimplementinganelectronicmonitoringsystemforvehicleswiththeuseofOpticalCharacterRecognition(OCR)systemsandcamerasinstalledalongtheroadway.Thecameraswilldetectandregister licenseplates.Thesecondphaseoftheconcessionwill installRadioFrequencyIdentification (RFID) systems for tracking trucks. Inpreparation, theBrazilianGovernmenthasalreadyenactedalawrequiringallcargovehiclesbeequippedwithRFIDdevices.Thedatacollectionprojectwilltrackfreight/cargotrucksthroughcamerasabletocaptureelectronicimagesoflicenseplateswithOCRandRFIDsystems.TheRECEIsystemswillultimatelyrepresentadatabasetoallowintegrationofothercustomizedsystemsthatSEILneedstoexecuteitsstrategicplan.

Currently,RECEI’stoppriorityisinstallingtheOCRcameras.TheGovernmenthasidentified420potentiallocationsfortheinstallationof1,000cameras.

ThenextphasesoftheRECEIprojectinvolves:

Ø Installationofcamera/OCRsystems;Ø ImplementationofcentraldatabasebankandOperationalControlCenter;Ø Developmentofthecentralsystemtobemodeledandtestedbyotherstateinstitutions;andØ DeploymentofRFIDsystem.

SEILiscurrentlyintheevaluationprocessfortechnologiessuchasITSandICTsystems.TheprojectawaitsfinalfundingfromthestateGovernmentforconstruction.Thebidshouldbeannouncedin2016.

TheSEILProjectmayprovideU.S.firmswithopportunitiesrelatedtothedesignandsupplyofITSandICTsystemsincluding:

Ø CCTVcameras;Ø OCRsystems;Ø RFIDsystems;Ø Trafficdatasensors;Ø Communicationssystems;Ø Technologiesforoperationalcontrolcenters;Ø Databasecenterequipmentandsoftware;Ø Workstations,servers,andoperatingsystems;Ø Videodisplaysystems;Ø Powerback-upsystems;andØ Professionalservices(ITSandICTsystems)forhighwayrelatedoperations.

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ContactsFormoreinformationonthisproject,youmayreachouttotheprojectcontactslistedbelow.

StateofSaoPaulo U.S.TradeandDevelopment

AgencyU.S.CommercialServiceBrazil

GiovanniPengueFilhoDirectorGeralAgenciadeTransportedoEstadodeSaoPaulo(ARTESP)RuaIguatemi,105–13Andar–ItaimBibiSaoPauloCEP0145-011Telephone:55113465-2009Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

AndrewGatelyCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7403Email:[email protected],Telecommunications,E-CommerceU.S.Consulate–SaoPauloR.ThomasDeloney,381SaoPaulo,BrazilTelephone:+55113250-5339Email:[email protected]

StateofParana U.S.-BrazilTransportationPartnershipHighwaysWorking

GroupRejaneKaramChiefCoordinatorforPlanningandProgramsSecretariadeEstadodeInfraestruturaeLogisticaAvenidaIguacu,420,BairroReboucas-Curitiba-Parana2ºandar-SaladeSituacaoTelephone:+55413304-8535Email:[email protected]

NicoleBambasU.S.DepartmentofTransportationWashington,DC20590Telephone:202366-5058Email:[email protected]

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3.7 BrazilHighwayOverviewandRegulatoryFramework

Highwaysrepresentoverhalfofall surfacetransportation inBrazil, followedbyrailways (25%), inlandwaterways(17%)andotherssuchasairtransportation.Themajorityofcargoandpassengerstravelbyroads inanetwork that stretchesacross1.7millionKm. In themid-1990s,Brazil launched its federalhighway concession program and the country now has approximately 55 federal highways built andoverseenbytheprivatesector.

Brazil’srecentgrowthinforeigntradeandtheemergenceofprivateportoperationhasmaderesidentsand cargoevenmore relianton thehighway system. The lackof rail network connectingproductioncenters to the ports limits most cargo movements to highway travel, increasing logistical andtransportationcosts.

3Figure37-NumberofVehicleFleetinBrazil(InMillions)

The existing highway concession contracts feature projects such as new highways, expansion andmodernizationofexistinghighways,addinglanecapacity,constructionofnewbridges,pavingofunpavedroads, interchange construction to connect highways to communities and production centers,maintenance,safetyimprovementsandthedeploymentofIntelligentTransportationSystems(ITS).

Theconcessionprogramreliesontollstogeneraterevenueinsupportoftheseupgrades.Thecontractusuallyprovidesa25-30yearperiodfortheconcessionairetocompletetheimprovements, including

3Source:Detran(NationalDepartmentofTransportation)*Bus,tractortruck,truck,pickuptruck,minibus,motorcycle,busandutilityvehicles

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

20.0

21.2

23.0

23.7

24.9

26.3

27.9

29.9

32.1

34.5

37.2

39.8

42.7

45.4

48.3

8.6 9.4 10.8

11.3

12.4

13.6 15.0 16.9 19

.2 21.2 23

.6 26.3 28

.6 30.8 33

.2

MillionVehiclesGrowth(2000-2014):184.6%AverageAnnualGrowth(2000-2014):7.8%

Vehicles Bus,Trucks,etc.

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highway operation andmaintenance. TheBrazilianDevelopment Bank (BNDES) has been the primaryfunder,offering low-interest loans,and furtherpromoting theGovernment’sefforts toattractprivatesectorinvestment.

Whiletheconcessionprogramhasalreadyimprovedmanykeyhighways,muchworkremainstobedone.U.S.companiesmaybeabletoexportgoodsandservicesrelatedtodesign,supplyandimplementationof ITS systemsand ICT technology. Several years ago, theBrazilianGovernmentelected to follow thestandardsoftheNationalTransportationCommunicationsforIntelligentTransportationSystemsProtocol(NTCIP).FollowingNTCIPstandardsandimplementingITSsystemsshouldleadtocompatibilitybetweencomputersandelectronictrafficcontrolsystems.

Brazilianhighwayregulatoryagenciesoverseetheprocessofdelegatingpublicservicestoprivateorpublicorganizations.Inadditiontomonitoringservicequality,regulatorsareresponsibleforestablishingrulesandstandardsforhighwayconstruction,operationandmaintenance.ThemajorregulatorsinthehighwaysectorincludetheMinistryofTransportation(MOT),theNationalLandTransportationAgency(ANTT)andtheMinistryofPlanning(MOP).MOPdeterminesareasinneedofhighwayconnectionstosupportthenationalstrategicplan.TheMOTandtheNationalLandTransportationAgencyorganizetheoperationand development of all federal roadway activities with the goal of supporting the safe and efficienttransportofgoodsandpeopletravelingviathenationalhighwaysystem.

As a sub-agency of MOT, ANTT regulates vehicle and roadway safety conditions and oversees themonitoring, licensing and operating of the national roadway system. ANTT is funded throughMOP’sbudgetandpartlybyconcessionrevenue.

Regarding state highways, each state has its own agency responsible for the planning, development,constructionandoperationoftheirrespectivehighways.SomestatessuchasParana,SaoPauloandRiodeJaneirohaveadoptedthefederalhighwayconcessionmodelinanefforttodevelopandmodernizetheirhighways.

3.8 U.S. Department of Transportation (USDOT) and Brazil’s Ministry ofTransport(MOT)

The USDOT and MOT came together to form the U.S.-Brazil Transportation Partnership in order toimprovetransportationsafetyandconnectivity,andtofacilitatetradebetweenthetwocountries.UndertheTransportationPartnership,therearefourworkinggroups:Highways,PortsandInlandWaterways,RailwaysandDisasterPreparednessandResponse.

TheHighwaysWorkingGroup(HWG)collaboratesonkeytransportationissues,coordinatesinformationexchangeopportunitieswithtransportationagenciesandexpertsanddevelopsprogramactivitiesinareasofmutual interest. In 2015, theHWGheld five technical exchangesonperformance-based contractsaddressing: load capacity for trucks, highways maintenance, hours of service and enforcement forcommercialvehicledrivers,highwayinfrastructurefinancingandconcessions.

TheHWGhasalsoaddressed IntelligentTransportationSystems (ITS). In fact, the“ITSePrimer”offersresources to Portuguese-speaking transportation professionals and students regarding fundamentalconcepts and practices for ITS technologies. The ePrimer is a valuable tool for understanding ITStechnology and can be accessed at https://www.transportation.gov/office-policy/international-policy-and-trade/sistemas-de-transportes-inteligentes

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PORTS

4. PORTS4.1 MarketOpportunitiesinthePortSector

Throughrecent investments,Brazil ismakinggreatstrides toexpandandenhance itsportsector.TherapidgrowthatBrazil’sproductioncentersdrivetheneedtoinvestinadditionalinfrastructureexpansion.U.S.companiesmaybenefitfromtheseprojectsintermsofsupplyingadvancedtechnologies,professionalservicesandcivilworksintermsofdredging.ItisevidentthatthelocalBrazilianmarketonitsowncannotsupplyallofthenecessaryservicesandtechnologiesthattheportsectorneeds,representingmarketentryopportunityforU.S.companies.

Over the next five years, Brazil’s port infrastructure will receive an unprecedented flow of newinvestment, creating a unique window of opportunity for international investors, including U.S.companies. What’s driving the investment is the growth of exports such as agriculture and miningcommodities,includingsoybeansandironore.AsaresultofthePILprogram,privatesectorcompanieswilllikelyinvest$12billioninBrazil’sportsandcorrespondingterminals.

Brazilhas limitedexperience indeployingadvancedporttechnologies,suchasterminaloperationandmanagement systems, ICT systems for port operations, Vessel Traffic Management Systems (VTMS),communicationsandradartechnologies,securitysystems,RFIDandOCRsystems.AsU.S.companieshaveanexcellenttrackrecordwithfeasibilitystudies,engineeringdesignsandtechnology,thisprojectmayposeanopportunityforthemtoenterandthriveinthemarketofBrazil’sportsector.

Thenationaldredgingprogram(PND2)expects investmentsof$1.8billion,whichU.S.companiesmaycapitalizeon.Theportsecuritymarketwilllikelygrow.Brazilhasnotfacedasmanythreatsofterrorismasothercountries,whichmeansthatuntilnow,itwasnothighlyfocusedonportsecurity.Asglobalizationcontinuestomakeourworldmoreinter-connected,therewillbestricterscreeningandsecurityprocessesthatall internationalshipmentsmustpassthrough.TherewillbeenhancedintegrationofgeneralportsecuritywhichislikelytorequiresignificantinvestmentonsecuritysystemsincludingfeaturessuchasX-raymachines,cargoscreeningequipment,CCTVsystems,OCRandRFID.

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TechnologiesandServicesRequiredinPortConcessionProjects:

Ø TerminaloperationandmanagementsystemsØ ICTsystemsforportoperationsØ VesselTrafficManagementSystems(VTMS)Ø CommunicationsandradartechnologiesØ SecuritysystemsØ RFIDandOCRsystemsØ Dredgingoperations

4.2 VesselTrafficManagementSystem(VTMS)

SEP,whichisnowundertheMinistryofTransportation,PortsandCivilAviation, isworkingtodeveloppoliciestoadvanceportinfrastructuredevelopment.SEPisevaluatingadvancedtechnologiessuchastheVessel Traffic Management Systems (VTMS) to improve operational efficiency and safety conditions.VTMSisasystemthatprovideselectronicinformationforthesafeandefficientnavigationofvesselswiththecapabilitytoprovideactivemonitoringofmaritimetrafficthroughaspecificarea.

SEP has begun to develop its Intelligent Port Logistics initiative, which consists of planning for andimplementingICTformodernizingportoperationalandsafetysystems.Aspartofthisinitiative,SEPhasbeguntoimplementtheVTMSsystemacrosstheports.

Under thePAC2, theVTMSprojectswill likely receive$53million from theGovernment. The fundingcoverssixportsinPhaseIincludingRiodeJaneiro(RJ),Itaguai(RJ),Santos(SP),SalvadorandAratu(BA)and Vitoria (ES). The VTMS projects are handled through public bids. In the first round of VTMSdeployment,SEPauthorizedVitoriaandtheSantosPorttobidonprocuringandimplementingVTMSintheirrespectiveports.Theseprojectsarecurrentlyunderconstruction.

CompanhiadeDocasdoRiodeJaneiro(CDRJ)willprocurethesecondroundofVTMSsystemsfortheRiodeJaneiroPortandthePortofItaguai.Becausefundsfortheseprojectswerealreadyallocated,SEPandCDRJofficialsexpectbidsfortheprojecttobeissuedin2016.ThePortsofItaguai,SalvadorandAraturemaininthedevelopmentstageandawaitingtheapprovalprocessfortheirVTMSsystems. AllportsmustobtainapprovalfromtheBrazilianNavypriortodeployingVTMSsystems,anduntilthenthebiddingprocessmaynotbegin.

ThethirdphaseoftheVTMSimplementationfeaturesatleasttenotherportsincludingFortaleza(Ceara),Rio Grande (Rio Grande do Sul), Belem (Para), Vila do Conde (Para), Itajai (Santa Catarina), Itaqui(Maranhao),SaoFranciscodoSul(SantaCatarina),Imbituba(SantaCatarina),Manaus(Amazonas),Suape(Pernambuco)andSantarem(Para).ThedefinitionoftheVTMSprojectsisexpectedbetween2016and2017,atwhichtimefinancialresourceswillhavetobeallocatedbySEPforprojectimplementation.

TheVTMSprogramoffersmarketopportunitiesforU.S.firmsinthefollowingareas:

Ø Maritimevesseltrackingsystems;Ø ICTtechnologies;Ø Communicationandradartechnologies;Ø CCTVsystems,controlcenterequipment;Ø Computerequipment;

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Ø ICTinstallationandintegrationservices;andØ Professionalservicesrelatedtoengineering,designandprojectmanagement.

4.3 PortologProgram

TheSecretariatofthePorts(SEP)isleadingtheIntelligentCargoSupplyChainandLogisticsProject,aninitiative to track andmonitor cargo vehicles passing through the ports. This solution allows for themanagementandsequencingof roadwayaccess intotheports. It reducestrafficcongestion,complieswithinternationalsecurityregulationsandprovidesinformationformoreefficientcargomanagement.

The Intelligent Cargo Supply Chain and Logistics Project is supported by Portolog, a database ofinformationregardingcargoorigintoitsfinaldestination.Portologaimstosynchronizevesselandtruckarrivaldates,aswellastruckschedulesandcredentials.

SEPlaunchedPortologtoautomateandintegrateportoperationsrelatedtocargotracking.Thesystemreceivesallrelevantinformationonthemovementofgoodsastruckstransportcontainersfromonepointto another. The Portolog Central System is already being developed by SERPRO, a federal publicenterpriseagencyinBrazil,buttheprocurementandconstructionoftheequipmentatthevariousportshasyettobegin.

Portolog requires that at each port entrance, infrastructure and equipment be installed for RadioFrequency Identification (RFID) and Optical Character Recognition (OCR) to allow for informationcollectiononatruck’scargo. Portologalsorequiresthatbiometricrecognitionsystemsbeinstalledtodetectandidentifydrivers;datathatwillthenbeloggedandtransmittedtothePortologCentralSystem.Each port connected to the Portolog system will be responsible for implementing the previouslyreferencedtechnologies.ThePortofSantosisexpectedtoissueatenderin2016.

Currently,port terminalsusetwopre-existingprivateregulatorwaitingareastoscheduletrucktraffic.Vehiclesareauthorizedtodrivetotheportterminalonlywhenthereareavailableunloadingspots.ThePortologsystemwilldirecttruckstothescreeningareabeforetheyarriveattheport.Atthescreeningarea, trucksare registeredandscheduled to return to theport. Once there isanopenspotnear thewaitingarea,thescheduledtrucksaredirectedtothisareawheretheywillbeinformedoftheirdeparturetime.

PACwilllikelyinvest$40millionintoPortolog,whichcoversimplementationattwelveports:Santarem(Para), Itaqui (Maranhao), Pecem (Ceara), Fortaleza (Ceara), Suape (Pernambuco), Salvador (Bahia),Vitoria(EspiritoSanto),Itaguai(RiodeJaneiro),RiodeJaneiro,Santos(SaoPaulo),Paranagua(Parana),andRioGrande(RioGrandedoSul).

ThefirstportstoreceivePortologwillbeSantosandVitoria.Twoadditionalportswillalsoreceiveapprovaltoimplementthesystem.SEPwillannouncethoseportsin2016.Theothereightportscontinuetoawaitfundingwhichmaybecomeavailablein2016or2017.

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SEPhasdecidedtoselectthetechnicalspecificationsfortheRFIDandOCRtechnologiestobeopenandnon-proprietary,whichallowstheinternationalcommunitytoparticipateinthebiddingprocess.PortologpresentsopportunitiesforU.S.companiesinthefollowingareas:

Ø Design;Ø Engineering;Ø RFIDsystems;

Ø OCRsystems,Ø Biometricdetectiontechnologies,andØ ICTinfrastructuredevelopment.

Contacts

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

FabioLavorTeixeiraSecretariodePoliticasPortuariasSecretariadePortosdaPresidenciadaRepublicaSCNQuadra04–BlocoBCentroEmpresarialVarig70714-900BrasiliaDF,BrazilTelephone:55613411-3746Email:[email protected],Eng.CivilGeneralCoordinatorofInformationManagementSecretariadePortosdaPresidenciadaRepublicaSCNQuadra04–BloquoBCentroEmpresarialVarig70714-900BrasiliaDF,BrazilTelephone:55612103-2350Email:maripescatori@gmail.comSANTOSPORTAngelinoCaputodeOliveiraPresidentePortodeSantosAv.Cons.RodriguesAlves,s/nCEP11015-900–Santos,SaoPaulo-BrazilTelephone:55133202-6400Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

AndrewGatelyCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7403Email:[email protected],Telecommunications,E-CommerceU.S.Consulate–SaoPauloR.ThomasDeloney,381SaoPaulo,SPBrazilTelephone:+55113250-5339Email:ebe.raso@trade.govU.S.-BrazilTransportationPartnershipPortsandInlandWaterwaysWorkingGroupTonyPadillaSeniorAdvisor,InternationalAffairsU.S.MaritimeAdministrationU.S.DepartmentofTransportationWashington,DC20590Telephone:202366-7045Email:[email protected]

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4.4 DredgingProjects

Thenationaldredgingprogram(PND2)seekstodeepenandmaintaintheaccesschannels,turningbasinsand mooring berths in and around port areas. Dredging will allow ports to receive larger vessels,expandingcapacityandincreasingcompetitiveness.Thereisahighneedfordredgingprojectsacrossanumberofportsandseveralprojectsremainonlyinthedevelopmentstages.

Between2012and2022,theGovernmentanticipatessignificantinvestmentindredgingprojects.Overthenextfiveyearsalone,thePND2isexpectedtoattractabout$1.5billionininvestmentsfordredgingat20Brazilianports.TheseprojectsofferopportunitiesforU.S.companiesinthedredgingbusiness.

ThePortSecretariatmanagesthePNDandoverseestheprocurementprocess.Informationonthebiddingdocuments,pertinentlegislationandtechnicalspecificationsabouttheportdredgingprojectisavailableatwww.portosdobrasil.gov.br/sobre-1.

ThefollowinggraphicdisplaystheBrazilianportsthattheGovernmenthasidentifiedforprioritydredgingprojects.

PortofSantos

FortalezaPortPortof

Cabedelo

PortofSuape/PortofRecife

PortofParanagua

PortofRioGrande

PortofLaguna/PortofSanFranciscoDoSul/PortItajai

PortofMaceio

PortofNiteroi/PortofItaguai

Figure38-DredgingProjectsatBrazilianPorts

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Contacts:

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

CristianePeraltaDiretoradoDepartamentodeObraseServicosdeAcessosAquaviarios-DOSAASecretariadeInfraestruturaPortuaria–SIP/SecretariadePortos/PresidenciadaRepublicaSCNQuadra04–BlocoBCentroEmpresarialVarig70714-900BrasiliaDF,BrazilTelephone:55613411-3735Email:Cristiane.peralta@portosdobrasil.gov.brFernandoCostaFonsecaDirectorNationalWaterwayTransportationAgency(ANTAQ)SEPNQd.514–Conj.EANTAQBuildingZipCode70760-545BrasiliaDF–BrazilTelephone:55612029-6504Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

AndrewGatelyCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7403Email:[email protected],Telecommunications,E-CommerceU.S.Consulate–SaoPauloR.ThomasDeloney,381SaoPaulo,BrazilTelephone:+55113250-5339Email:[email protected]

U.S.-BrazilTransportationPartnershipPortsand

InlandWaterwaysWorkingGroup

TonyPadillaSeniorAdvisor,InternationalAffairsU.S.MaritimeAdministrationU.S.DepartmentofTransportationWashington,DC20590Telephone:202366-7045Email:[email protected]

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4.5 PortConcessionProjects

OnJune9,2015,theBrazilianGovernmentannouncedthat itplansto investnearly$12billion inportdevelopment:

Ø $3.8billionwillsupport50newleasesofportareasØ $4.8billionwillfund63newprivatelyusedterminals(TUPs)Ø $3.4billionwillsupportleaserenewals

TheGovernmenthasannouncedtheleaseofportareasintwogroups:

Ø Group1includes29terminalsØ Group2includes21terminals

Thefigurebelowsummarizestheupcomingportconcessions.

Figure39-BrazilianGovernmentPortFacilityLeasing

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4.6 OpportunitiesforPortAreaLeasing:Step1forGroup1ThetablebelowoutlinestheportarealeasingopportunitiesofferedbytheBrazilianGovernment.

Table1Group1–PortAreaLeasing

State/City Step1ofBlock1TerminalsPara § 4grainterminals

§ 3inOuteiros–Belem(Investmentsof$210million)§ 1inSantarem(Investmentsof$102million)

Thestep2ofBlock1(21terminals)Para § 1containerandgeneralcargoterminal($47million)

§ 12liquidbulkterminals($340million)§ 2mineralbulkterminals($160million)

Santos § 2containerandgeneralcargoterminals($76million)

§ 2liquidbulkterminals($111million)§ 2mineralbulkterminals($92million)

Group2includes21terminalsdistributedacrosstheportsofSuape,Aratu,RiodeJaneiro,SaoSebastiao,Santos,Paranagua,SanFranciscodoSul,Manaus,Santana,andItaqui.

Table2Group2–PortTerminalLeasing

State City TerminalName

TerminalType

Investment(InMillions)

AP Santana Santana-MCP01 GeneralCargo 15.2AM Manaus MAO01 Containers 287PE Ipojuca SUA05 Containers 327PE Ipojuca SUA07 Minerals 218PE Ipojuca SUA10 Minerals 117PE Ipojuca SUAXX Vehicles 14PE Ipojuca SUAYY Grains 13MA Itaqui IQI18 GeneralCargo 67MA Itaqui IQI31 Minerals 107BA Aratu ATU12 Minerals 105SP SaoSebastiao SSB01 Ro-Ro,conteiner 347SP Santos STSXX Grains 306SP Santos STSYY Liquid 14RJ RioDeJaneiro RDJXX Grains 20PR Paranagua PAR01 Cellulose 39PR Paranagua PAR03 Minerals 60PR Paranagua PAR07 Grains 90PR Paranagua PAR08 Grains 65PR Paranagua PAR09 Grains 37PR Paranagua PAR12 Vehicles 17SC S.FranciscoSul SFSXX GeneralCargo 65

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Port security isacriticalmatterand regulatoryagenciesareworking tomeet international safetyandsecurity standards. Projects related to port security may offer opportunities to U.S. companiesspecializingindesign,engineering,supplyofterminaloperationalandmanagementsystems,ICTsystems,securitysystemsandengineeringdesignforportandterminalrelatedinfrastructureimprovements.

Contacts:

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

FernandoCostaFonsecaDirectorNationalWaterwayTransportationAgency(ANTAQ)SEPNQd.514–Conj.EANTAQBuildingZipCode70760-545BrasiliaDF–BrazilTelephone:55612029-6504Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

AndrewGatelyCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7403Email:[email protected],Telecommunications,E-CommerceU.S.Consulate–SaoPauloR.ThomasDeloney,381SaoPaulo,BrazilTelephone:+55113250-5339Email:[email protected]

U.S.-BrazilTransportationPartnershipPortsandInlandWaterwaysWorkingGroup

TonyPadillaSeniorAdvisor,InternationalAffairsU.S.MaritimeAdministrationU.S.DepartmentofTransportationWashington,DC20590Telephone:202366-7045Email:[email protected]

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4.7 Brazil’sPortSectorOverviewandRegulatoryFramework

Brazil’scoastlinestretches8,500Kmfromnorthoftheequatortobelowthe30thparallelinthesouth.In2009,therewere37publicports(bothseaportsandriverports)and128privatelyusedterminals(TUPs).TheSecretariatofPorts(SEP)oversees34ofthepublicports,with18administeredbystateormunicipalGovernments,and16operatedbythepublicly-ownedportauthorities(CompanhiaDocas).TheNationalAgencyforWaterwayTransportation(ANTAQ)overseesportregulationandfinancingunderSEP.

TheconcessionprocesshasallowedBraziltodevelopitsportswiththehelpoftheprivatesector.TheGovernmentoverseesmostmulti-useportsandconcessionsofterminalstotheprivatesector,typicallywith25yearagreements.ThroughtheGrowthAccelerationProgram(PAC1andPAC2)investmentplans,internationalcompanieshavepartneredwithlocalBraziliancompaniestogainaccesstoportconcessionsandprivateuseterminals(TUPs).

Of the 34 statutory ports the Secretariat of Ports administers 18, which are delegated, awarded orauthorizedtobeoperatedbythestateandcityGovernments.Theother16portsareadministeredbyportauthorities,CompanhiadeDocas,whicharesharedprivateandpubliccompanieswiththeBrazilianGovernmentasthemajorstockholder,andarethereforedirectlylinkedtoSEP.

4Figure40-PublicPorts/TerminalsforPrivateUse(MillionTons)

Theconcessionsandleasesaredictatedbyacontract,precededbytheprocurementprocess(PMI).Thecriteria for thisprocess include thehighest cargohandling capacity, smallest tariff and shortest cargohandlingtime.Thecriteriamaybeconsideredcollectivelyor isolatedontheirown.ANTAQauthorizesportareasor facilitiesoutsideof the statutoryports. Thedurationof the concessionperiod forareasoutsidethestatutoryportswillbeupto25years,withtheoptiontorenew.

4Note:Considersembarkationordisembarkationinpublicportsandterminalsforprivateuse.

2000

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34933

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333

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392 415 440 476

494

473 54

5 577

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PublicPorts TerminalsforPrivateUse

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RAILWAYS

5. RAILWAYS5.1 Brazil’sRailwayOpportunities

Brazil’srailtechnologymarketwilldevelopdynamicallyoverthenextfivetotenyears.Asthevolumeofrawmaterialsforexportgrows,sowillthedemandtoexpandraillinesandconnectthemwiththeports.If theGovernmentcontinues investing inrail infrastructure, theprivatesectorwill likelycommit to itsshareofinvestments.Inadditiontotheagriculturesector,miningcompaniesarebigstakeholdersintherailsectorandwilllikelypushfordevelopment.

Theconcessionofnewrailcorridorswillcreateamarketforproductssuchas:

Ø Rollingstock;Ø Traincontrolsystems;Ø Signalingandcommunicationsystems;Ø Trackmaterialandequipment;Ø Installationoftracksystems;Ø Trackinspectionsystems;Ø Newfreightwagons;andØ Railmaintenanceequipmentandlocomotivespareparts.

Theafter-salesmarket(refurbishment,maintenanceandrepairofrollingstock,renewalandmaintenanceof infrastructure) is also expected to surge as the freight rail sector grows with more lines, andsubsequentlyrequiresmaintenance.GloballeadersintherailwaybusinesshavealreadymadesignificantinvestmentsinBrazil’smanufacturingplans,astheyexpectahighrateofreturn.

U.S.companiesprovidingrailequipmentandservicessuchasGE,EMD,ProgressRail,RailProandHarsco,haveestablishedmanufacturingplantsand/orofficesinBrazil.U.S.companiesshouldbeabletocompeteinthismarket,notwithstandingthefactthattheseU.S.manufactureshavetoadheretoBrazilian“localcontent”regulationsthatrequireaminimumpercentageofdomesticcontent(materialsandparts)tobemadeinBrazil,ratherthanimported.

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5.2 FreightRailOperators

5The private rail operators in Brazil are Estrada de FerroVitoriaaMinas(EFVM),EstradadeFerroCarajasS.A.(EFC),MRS Logistica SA, America Latina Logistica SA Brazil (ALLBrazil) and Ferrovia Centro- Atlantica SA (FCA). Theseoperators specialize in raw material transportation, mainlyiron ore, and together operate more than 28,000 Km ofrailwaylines.

The owner structures of the companies vary significantly.EFC, EFVMandFCAbelong to themining group,VALE. TheprimaryownerofMRSisthesteelproducer,CSNCompany.ALL is the holding company of its subsidiaries, ALLMS andALLMN.

5AppendixAofthisguideprovidesacompletelistoftherailoperatorsinBrazil.

Figure41-MRSFreightTrain

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Figure42-6BrazilRailwaysMap

5.3 FreightRailwayConcessionProgram

InJune2015,theGovernmentannouncedinvestmentopportunitiesintherailsectorwiththegoalsofexpandingrailcargotransportation,creatingamodernandintegratedrailwaynetwork,increasingtherailtransportation capacity and reducing logistical bottlenecks. Investments could reach $28.8 billion inconstruction, modernization and maintenance of 7,500 Km of railway lines. The five new railwayconcessionssettotakeplacebeforetheendof2016represent7,500Kminextensionwithaninvestmentof$23.5billion.Ontopofthat,anadditional$5.3billionwillbeinvestedintoexistingconcessions.

The concessionmodelwillmaintain broad gauge railwayswith high load carrying capacity, optimizedgeometricdesignandhighspeed.Themodel’spremiseistoensuretherightofwayforintegratingthenetworkofexistingandnewconcessions,improvingcompetitionintheverticaloperatormodel,adopting

6Source:BrazilMinistryofTransportation

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abiddingmodelbygrantsorsharedinvestmentandusingthePMIproceduretodevelopthefeasibilitystudiesrequiredforprivateconcessions.

5.4 RailwayConcessionOpportunitiesin2016

ThefollowingaretherailwayprojectsoutlinedbytheBrazilianGovernmentwhichareexpectedtobeformallyannouncedforbidsin2016:

Table3UpcomingRailwayConcessionsfor2016

RailwaySegment Description

North-SouthRailway Twostretches(totaling1,430Km)overtheNorth-SouthLine(FNS).Thefirstfrom Barcarena (State of Para) to Acailandia (State ofMaranhao) and thesecondonefromPalmas(StateofTocantins)toAnapolis(StateofGoias).

North-SouthRailway Twostretches (totaling895Km)over theNorth-SouthLine (FNS). The firststretchisfromAnapolis(StateofGoias)toEstrelaD’Oeste(StateofSaoPaulo)and the secondone is fromEstrelaD’Oeste to Tres Lagoas (State ofMatoGrossodoSul).

LucasDoRioVerde/MT-Miritituba/PA

A 1,140 Kmof stretch from Lucas do Rio Verde (State ofMatoGrosso) toMiritituba(StateofPara).

RiodeJaneiro/RJ-VillaVelha/ES

A572KmofstretchfromRiodeJaneiro(StateofRiodeJaneiro)toVitoria(StateofEspiritoSanto).

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ThefigurebelowrepresentstherailwaycorridorsthattheGovernmentwillofferforprivateconcession.

Figure43–2016FreightRailwayCorridorsforPrivateConcession

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5.4.1 ProjectNorte–SulRailway(Acailandia/MA-Barcarena/PAandPalmas/TO

ProjectDescription

TheAcailandia(MA)-Barcarena(PA)railsectionisaGreenfieldrailwaydesignedtograntaccesstothePort of Vila do Conde in the State of Para. Because of its relative proximity to European and NorthAmericanmarkets,MA-PAisacompetitivealternativetoforeigntrade.ThePalmas(TO)–Acailandia(MA)railsectionisalreadybuiltandwillserveasthecorestructureforrailwaytransportation,connectingthelogisticshubofAnapolis.ThePalmas(TO)toAnapoliswillcompletetherailwaylinefromAnapolisallthewaytothenorthatBarcarenaandthePortofViladoCondeasabrownfieldcorridor.

AnticipatedInvestment

$2.3billion

ProjectStatus

ANTThasaccepted initialtechnicalstudiesandnowmustassessthesestudiesunderthePMIProcess.Subsequently,companiesauthorizedunderthePMIwillcompletetheirstudies,ANTTwilldevelopadraftcontract and a notice of invitation to bid. From there, ANTT will develop and review financial andeconomicmodellingandholdpublichearings.

Oncethatprocesshasbeencompleted,ANTTwillresendalldocumentstotheBrazilianFederalCourtofAudit(TCU)forapprovalpriortolaunchingtheofficialinvitationtobid.ThosecompanieschoosingnottoparticipateinthePMIprocessbysubmittingstudiescanstillparticipateintheofficialpublicbidonceANTTannouncesit.

Figure44–Acailandia/MA-Barcarena/PA

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5.4.2 ProjectNorte-SulRailway(Anapolis/GO-EstrelaD’Oeste/SP-TresLagoas/MS)

ProjectDescription

TheAnapolis/GO–EstrelaD’Oeste/SPextendstheNorte-SulRailwayinthestatesofGoiasandSaoPauloand this portion of the project is in the final phase of construction. The section between EstrelaD’Oeste/SPandTresLagoas/MSwillneedtobeconstructedunderanewconcessionandwillpassthrougha regionwith agricultural and industrial potential. The rail connection at theMunicipality of EstrelaD'Oeste/SPwilllinktheNorte-SulRailwaytotheexistingrailnetworkgrantedtoALLMalhaPaulistaS.A.,creatingaccesstothePortofSantos.

EstimatedInvestment

$1.5billion

ProjectStatus

ANTThasacceptedinitialtechnicalstudiesandnowmustassessthesestudiesthroughthePMIprocessforthesectionbetweenEstrelaD’Oeste/SPandTresLagoas/MS.Subsequently,companiesauthorizedunderthePMIwillcompletetheirstudies,atwhichpointANTTwilldevelopadraftcontract,andanoticeofinvitationtobid.Fromthere,ANTTwilldevelopandreviewfinancialandeconomicmodellingandholdpublichearings.

Figure45-Anapolis/GO-EstrelaD'Oeste/SP

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5.4.3 Project-LucasdoRioVerde/MT-Itatuba/PARailwayProject(MirititubaDistrict)

ProjectDescription

The Lucas do Rio Verde/MT-Itaituba/PA (District Miritituba) Railway will improve the movement ofagricultural production in the Midwest, connecting in Para to the Port of Miritituba in the Tapajoswaterway.MakinglogisticsupgradeswillallowBraziltobecomemorecompetitivewithitsagriculturalcommodities.

EstimatedInvestment

$3.3billion

ProjectStatus

ANTThasacceptedinitialtechnicalstudiesandnowmustassessthesestudiesthroughthePMIprocess.Subsequently,companiesauthorizedunderthePMIwillcompletetheirstudies,thenANTTwilldevelopadraftcontract,andanoticeofinvitationtobid.Fromthere,ANTTwilldevelopandreviewfinancialandeconomicmodellingandholdpublichearings.

Figure46-LucasdoRioVerde-Itaituba

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5.4.4 Project-RiodeJaneiro-EspiritoSantoRailway

Figure47-RiodeJaneiro-EspiritoSantoRailway

ProjectDescription

TherailwayconnectingRiodeJaneirotoEspiritoSantowilllikelybeconnectedtothenetworkgrantedtoMRSLogisticaS.A.intheMunicipalityofNovaIguacu(RJ).Thisrailconnectionwillcreateaccesstotheports intheStatesofRiodeJaneiroandEspiritoSanto,andwill improve logisticsofcargo importandexportintheSoutheastRegionofBrazil.

EstimatedInvestment

$2.5billion

ProjectStatus

Thepreliminarystudieshavebeencompletedfortheproject.

5.5 FreightRailwayOperationalSystemsStandard

WhileANTTreceivedfeasibilitystudiesforfourofthefiverailconcessionsplanned,thereisanongoingdiscussionondefining thestandard for railwayoperational systems thatconcessionairesmustcomplywith. Currently, ANTT has not decided onwhich railway operationalmodel to use, European or U.S.standard.ANTTindicatedthatbeforefinalbidannouncements,itwillselectamodel.Onceaselectionismade,theprocesswillmoveforwardwithpublicbidannouncements,whichareexpectedinlate2016.

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Contacts:

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

YoshihiroNemoto,MEngSuperintendenciaExecutiva-SUEXECoordenadorExecutivoAgenciaNacionaldeTransportesTerrestres–ANTTSCESTreco3,Lote10Polo8doProjetoOrla70200-003BrasiliaDFTelephone:+55(61)3410-1725Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

AndrewGatelyCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7403Email:[email protected],Telecommunications,E-CommerceU.S.Consulate–SaoPauloR.ThomasDeloney,381SaoPaulo,BrazilTelephone:+55113250-5339Email:[email protected]

U.S.-BrazilTransportationPartnershipRailwaysWorking

Group NicoleBambas

U.S.DepartmentofTransportationWashington,DC20590Telephone:202366-5058Email:[email protected]

5.6 OverviewofFreightRailwayandRegulatoryFramework

Railroadscomprise24%offreighttransportation,movingproductssuchasironore(over70%oftotalrailfreight), soybeans,corn, steelandotherminerals.There is28,190Kmof railwaystretchingacross thecountry,whichisunderprivateconcession.Railtransportcanbeupto30%lessexpensivethanhighwaytransport,anditisalsomoreefficient.Historically,Brazilhasnotmadesubstantialinvestmentsinitsrailsystem,andthatonlybegantochangeoverthepast20years.

In2015,theGovernmentannouncedplanstoinvestbillionsofdollarsintherailsector,withadditionalconcessions.Theseinvestmentscouldresultinexpansionasgreatas7,500Km.TheGovernmentaimstoimprovetheconnectionbetweentheNorthandSouthregionsbylinkingpre-existingrailwaysandbuildingnewonesaswell.

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TheDivisionofRailwaysundertheNationalLandTransportationAgency(ANTT)overseestheconcessionprocess.Inadditiontomonitoringservicequality,ANTTisresponsibleforestablishingrulesandstandardsforrailwayoperations.

ThemajorpublicstakeholdersintherailsectoraretheMinistryofTransportation(MOT),ANTT,Ministryof Planning, Logistics and Planning Company (EPL) and the Company of Engineering, Railways, andConstruction(VALEC).TheMinistryofPlanningmanageslogisticsplanninganddeterminespotentialareasforrailconnectionstosupportthenationaleconomy.TheMinistryofTransportationandANTToverseetheoperationanddevelopmentofrailactivities,facilitatingthesafeandefficienttransportoffreight.

EPL administers studies, surveys, infrastructure construction, technology development and activitiesaimedattechnologytransfer.EPLworksincoordinationwiththeMinistryofTransportationandMinistryofPlanninginpolicydevelopmentandstrategicplanning.

VALEC is a publicly owned company that does economic and administration planning, as well asengineeringincludingconstruction,operation,exploitationandintegrationofrailwayswithothermodesoftransportation.

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MASSTRANSIT

6. MASSTRANSITSYSTEMS6.1 Brazil’sUrbanPassengerTransportationOverviewAsurbanpopulationsinBrazilcontinuetogrow,sodoesthedemandfortransportationoptions,posingatremendous challenge for federal, state and municipal governments. The Ministry of Cities is anautonomous federal agency thatworks to establish strategies, direction and priorities supporting thedevelopment of Brazil’s cities. One of the Ministry’s largest federal programs involves publictransportationinitiativessuchasmetros,BusRapidTransit(BRT),masstransitandtrafficimprovement.PublictransportationagenciessuchasSPTransinSaoPauloandthePublicAgencyforTransportationandCirculation (EPTC) inPortoAlegreareplanning to implementAdvancedPublicTransportationSystems(APTS)fortheirbusfleet,andassociatedcontrolcentersforbusmanagementoperations.Thereisstronginterest in incorporating ITS and ICT in public transportation systems, as state and municipaltransportationagenciesseeksolutionsforimprovingthesafetyandefficiencyofexistingsystems.

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6.2 PassengerRailTransportationProjects

ANPTrilhos is thenationalassociationofpassengerrailoperatorsand industry leaders inBraziland itsobjectiveistopromotethedevelopmentofpassengerrail.TheprimarymembersofANPTrilhosareMetroBahia,MetroRio,SuperVia,MetroSaoPaulo,CPTM,MetroDF,CBTU,TrensurbandViaQuatro.

In2014,2.9billion7passengersusedrailtransportation,andthatnumberwillonlycontinuetogrowasrailbecomesmoreaccessibleandwidespread. Manyof theexistingpassenger rail systemsarebeingexpanded inurbanareas.Currently, thereareanumberofpassenger rail systemsunderconstructionincludingmetros,lightrailsystems(VLT)andmonorailprojects,aspresentedinthetablebelow.

Table7PassengerRailSystemProjectsUnderConstructioninBrazil

BrazilianState ProjectDescriptionBahia ExpansionofMetroSalvador-Line1

ImplementationofMetroSalvador-Line2Ceara ImplementationofMetroFortaleza-EastLine

ImplementationofVLTinFortalezaImplementationofVLTinSobral

Goias ImplementationofVLTinGoianiaMatoGrosso ImplementationofVLTinCuiabaPernambuco ExpansionofMetroRecife–SouthLine

ExpansionofMetroRecife–CentralLineRiodeJaneiro ImplementationofMetroRiodeJaneiro-Line4

ImplementationofVLTinRiodeJaneiro–Line6SaoPaulo ExpansionofMetroSaoPaulo–Line4SaoPaulo ExpansionofMetroSaoPaulo–Line5

ImplementationofMetroSaoPaulo–Line6ExpansionofLine9ofCPTMImplementationofLine13ofCPTMImplementationofMonorailSaoPaulo–Line15ImplementationofMonorailSaoPaulo–Line17ImplementationofMonorailSaoPaulo–Line18ImplementationofVLTinBaixadaSantista

7ANPTrilhos

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ANPTrilhosreportsthatmanypassengerrailsystemsarecurrentlyunderevaluationforexpansion.Thosearepresentedinthetablebelow.

Table8PassengerRailSystemsUnderEvaluation

BrazilianState ProjectDescriptionAlagoas ImplementationofVLTinMaceio

Amazonas ImplementationofMonorail–ManausDistritoFederal ImplementationofVLT–BrasiliaDistritoFederal ImplementationofRegionalBrasilia-LuzianiaTrainServiceDistritoFederal ImplementationofRegionalBrasilia-GoianiaTrainMinasGerais ExpansionandoperationofLine1ofMetrodeBeloHorizonteMinasGerais ImplementationandoperationofLine2-MetrodeBeloHorizonteMinasGerais ImplementationandoperationofLine3ofMetrodeBeloHorizonteMinasGerais ImplementationofRegionalBetim-DivinopolisTrain

MinasGerais ImplementationofRegionalBeloHorizonte–SeteLagoasTrainMinasGerais ImplementationofRegionalBeloHorizonte-ContagemTrain

Paraiba ImplementationofVLT-JoaoPessoaPernambuco ImplementationofVLT-PetrolinaPernambuco ImplementationofVLT-Recife

Parana ImplementationofCuritibaMetroParana ImplementationofRegionalLondrina-MaringaTrain

RiodeJaneiro ImplementationofMetroLine3RioGrandedoSul PortoAlegreMetroRioGrandedoSul ImplementationofRegionalBentoGoncalves-CaxiasdoSulTrain

SaoPaulo ImplementationofVLT-SaoJosedosCampos

SaoPaulo ImplementationofVLT-GuarulhosSaoPaulo ImplementationofIntercityTrain

Onekeyprioritywithexpandingandupgradingpublicrail involvesimplementingmoreeffectivesafetymeasures. Surveillance systems are one example of technology that would help address crime onpassenger railways. Public and private rail operators are searching for ways to transition fromconventionalvideosurveillancesystemstomoreadvancedtechnologythatprovidesrealtimedata.Whilevideosurveillancesystemsarecommonlydeployed instations,platformsandother rail facilities, theyhavenotbeenimplementedon-boardyet,asthetechnologyhasonlybeendevelopedoverthepasttenyears.

Currently,on-boardvideosurveillancesystemsarerecording-based,whereimagesarecapturedonhigh-capacityhard-disks.Thesesystemsarelimitedtopost-analysisonly.

In2015,USTDAawardeda technicalassistancegrant toANPTrilhos fordevelopingan implementationplan to integrate real-time video monitoring technologies. After that project is complete, individualoperatorswilllikelyseekspecificdesignplansforinstallingtechnologiesrecommendedbythetechnicalassistance.

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Potential U.S. exports for this project are train wireless data transmission technologies that utilize adedicatedfrequencyforseamlessdatatransferinsidethetrainsandthroughoutthetrack.Operatorswilllook for technology that can transfer data in tunnel environments and can provide moderncommunication systems between on-board (train) and wayside (track) with reliable service. Theimplementationofrealtimewirelessvideosystemsrequiresinteractivecommunicationstechnologytotransmitinformationfromthetraintocontrolcenters.Thiswillrequiredesignandengineeringservicesforimplementation.

Additionally,avarietyofsupportingICTsystemsassociatedwiththeCommandandControlCentersandrelatedprofessionalservicescouldposeopportunitiesforU.S.firms,specificallyintheareasof:

Ø DatacentertechnologiesØ ServersandworkstationsØ Serverandcomputeroperating

softwareØ VideoWallandotherInformation

DisplaytechnologiesØ FiberOpticcommunicationsystemsØ CommunicationinterfaceequipmentØ CoreswitchingequipmentØ ServerSwitchesØ ApplicationSwitchesØ InternetRoutersØ RadiusServersØ VPNGatewaysystemsØ NetworkandSecurityManagement

SystemsØ WirelessCommunicationsandMesh

Networks

Ø WirelessTransceiver/Receiver/antennas

Ø LocalAreaNetworks(LAN)Ø VideoDistributionSystemsØ DCFirewallSystemsØ DataStorageSystemsØ EthernetNetworking/Synchronization

SystemsØ EthernetSwitchesØ Powersystems(emergencypower

systems)Ø CCTVcamerasandhousingØ VideocompressorunitsØ PlanningandDevelopmentServicesØ EngineeringØ CommunicationsDesignServicesØ ProjectManagementServices

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Contacts:

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

RobertaMarchesiSuperintendentANPTrilhosSectordeAutarquiasSul-Quadra1-BlocoJ-Ed.CNTTorreA-5andar-Sala510-CEP70.070-010-Brasilia/DFBrasilia,BrazilTelelphone:(61)3322-3158Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

AndrewGatelyCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7403Email:[email protected],Telecommunications,E-CommerceU.S.Consulate–SaoPauloR.ThomasDeloney,381SaoPaulo,BrazilTelephone:+55113250-5339Email:[email protected]

6.3 BusPublicTransportationSystemProjectsIn major cities, public transportation is conducted by bussystemsmadeupofnetworksandroutesthataremanagedbymunicipalandstatetransportationagencies.Majorcitieslike Sao Paulo, Rio de Janeiro, Brasilia, Belo Horizonte,Fortaleza,Recife, Curitiba, PortoAlegre and Salvadorhaveextensive bus systems providing service within theirrespectivemetropolitanareas.

DuetothepopulationgrowthacrossmajorBraziliancities,the demand for bus transportation systems continue toincrease, which means local and state governments arepursuingexpansiontoexistingsystemsandincorporationofITSsystemstoimproveefficiency. Figure48–CuritibaArticulatedBus

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6.3.1 SaoPauloBusPublicTransportationSystem

The local bus system is managed by the Sao Paulo Transportation Secretariat (SPTrans), amunicipalagency that operates under the Secretaria de Transportes of Sao Paulo. SPTrans concessions its bussystem,whichentails1,300bus linesand15,000buses.TheSaoPauloBusRapidTransit(BRT)Systemservices127Kmofstreetsthatareusedexclusivelybybuses.ConnectedtotheBRT,thecityoperates28transferterminalsacrossthemetropolitanarea.Inaddition,SaoPaulohasmorethan17,000busstopsdistributedover4.5millionKmofstreet.TheBRTisverypopularandhighlyused:ofthecity’s11millioncitizens,7millionusethebussystemdaily,with55percentofintercitytripsmadeonmasstransit.

ThebusconcessionsthatSPTransissuedhaveexpiredwhichmeansthatcurrently,the1,300buslinesareoperatedonanextendedconcessionagreementuntilthecontractisrenewed.Withtheconcessionslikelytoberenewedsoon,SPTransdecidedtomodernizeexistingITSsystemsonthebuses,upgradetheirbusmonitoringsystemandexpandtheuseofITStechnologiestobetterintegratepublictransportationinthecity.Thisinitiativeiscalledthe“SaoPauloITSPublicTransportationSystemProject.”

SPTransplanstoimplementanIntegratedBusCommandandOperationalControlCenter(CCO)thatwillrequire the utilization of various ICT, ITS systems, specialized bus control software and other busautomationandmanagementsystemsunderonearchitecturethatwillallowtheCCOtointeractwiththerestofthebusITSnetwork.

Aspartofthisproject,theprivatesectorwillinvestinanddeployon-boardITStechnologies.ThisprojectwilllikelycreateexportopportunitiesforU.S.suppliersofferingITSandICTtechnologies.

ITSSystemsNeeded

Ø ComputerAidedDispatchSystems(CAD)Ø AutomaticVehicleLocation(AVL)

SystemsØ AdvancedCommunicationSystems(ACS)Ø SafetyandSecuritysystemsØ PassengerInformationSystems

Ø AutomaticPassengerCounterSystemsØ WirelessandRadioCommunication

SystemsØ FleetManagementandMaintenance

SystemsØ TransitSignalPriority(TSP)Systems

ICTEquipmentNeeded

Ø Workstations,SwitchingSystems(core,server,ethernet)

Ø GatewaySystemsØ RoutersØ FirewallsystemsØ LocalAreaNetworks(LAN)Ø Websecurity,emergencypower(back-

up)systemsØ VideoWallDisplaySystems

Ø CentralDataStorageSystemsØ Back-upDataCenterTechnologiesØ Fiberopticscableandassociated

equipment(modems,transmitter,receivers)

Ø ProfessionalservicesinICTplanning,designandimplementation

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6.4 PortoAlegre’sPublicAgencyforTransportationandCirculation(EPTC)PortoAlegreisthecapitalofRioGrandedoSulwithapopulationof1.5millionandafleetof718,789registered vehicles. The Public Agency for Transportation and Circulation (EPTC - Empresa Publica deTransporteeCirculacao)isresponsibleforconcessioningbusroutes,aswellasmonitoringandoverseeingtheeconomicandfinancialbalanceforthecity’spublictransportationservices.

Thefleetincludes1,659publictransportationbuses,618schoolbusesand3,917taxis.Theinfrastructureconsistsof55Kmofexclusivecorridorsforbuseswith87stations,andover5,000busstopsthroughoutstreets in other cities. The public transportation system in Porto Alegre, not including the metro,transports1.1millionpassengersacrossover400busrouteseveryday.

EPTCplanstodeployITSsystemsonthecity’sfleetwhereinformationwillbetransmittedtoEPTC’strafficmanagementcenter.TheprojectissimilartotheonebeinglaunchedbySPTransinSaoPaulo,yetonamuch smaller scale. EPTC’s project will likely be financed by the private operators as part of theconcessionrenewalagreement.Currently,theprojectisexpectedtobeannouncedforpublicbidin2016.

ITSSystemsNeeded

Ø ComputerAidedDispatchSystems(CAD)Ø AutomaticVehicleLocation(AVL)SystemsØ AdvancedCommunicationSystems(ACS)Ø WirelessandRadioCommunicationSystemsØ FleetManagementandMaintenanceSystems

ICTEquipmentNeeded

Ø Workstations,SwitchingSystems(core,server,ethernet)Ø FirewallsystemsØ Websecurity,emergencypower(Back-up)systemsØ CentralDataStorageSystemsØ Back-upDataCenterTechnologiesØ Fiberopticscableandassociatedequipment(modems,transmitter,receivers)Ø ProfessionalservicesinICTplanning,design,andimplementation

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Contacts:

ProjectContact U.S.TradeandDevelopmentAgency

U.S.CommercialServiceBrazil

AdautoFariasPrefeituradeSaoPauloTransportes(SPTrans)EconomicandFinancialManagementDirectorRua3dedezembro,34–2ndandar–Centro01014-020SaoPauloSP–BrazilTel:55-11-3293-2719Fax:55-11-3293-2888Email:adauto.farias@sptrans.com.brwww.sptrans.com.brSelmaStrublicPrefeituradeSaoPauloTransportes(SPTrans)DiretoriadeGestaoEconomico-financeiraRua3dedezembro,34–2ndandar–Centro01014-020SaoPauloSP–BrazilTel:55113293-2720Fax:55113293-2888Email:[email protected]

GabrielleMandelCountryManagerforBrazil1000WilsonBoulevardSuite1600Arlington,VA22209Telephone:(703)875-4357Email:Gmandel@ustda.govRodrigoMotaBrazilCountryRepresentativeConsulateGeneraloftheUnitedStatesofAmericaRuaHenriDunant,70004709-110SaoPaulo,SPBrazilTelephone:55-11-3250-5335Mobile:55-11-97575-9844Email:[email protected]

AndrewGatelyCommercialOfficerEmbassyoftheUnitedStatesofAmericaSES,Qd.801,Lote0370403-900–Brasilia,DFBrazilTelephone:55-61-3312-7403Email:[email protected],Telecommunications,E-CommerceU.S.Consulate–SaoPauloR.ThomasDeloney,381SaoPaulo,BrazilTelephone:+55113250-5339Email:[email protected]

EPTC–PortoAlegreVanderleiLuisCappellariDiretor-PresidenteEmpresaPublicadeTransporteeCirculacaoS.A.(EPTC)RuaJoaoNevesdaFontoura,No.7BarrioAzenha–CEP90050-030PortoAlegre,RS,BrazilTelephone:55513289-4200Email:[email protected]

MariaC.MolinaLadeiraDiretoradeTransporteEmpresaPublicadeTransporteeCirculacaoS.A.(EPTC)RuaJoaoNevesdaFontoura,No.7BarrioAzenha–CEP90050-030PortoAlegre,RS,BrazilTelephone:55513289-4350Email:[email protected]

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FINANCING

7. FINANCING

The main sources of infrastructure funding in Brazil are financing on the capital markets, includinginfrastructuredebenturesandcreditlinesfromtheBrazilianDevelopmentBank(BNDES).Thissectionofthe report provides information released by the Brazilian Government on the various sources andmechanismsforfinancingtransportationinfrastructure.

7.1 CapitalMarketTools

TheBrazilianGovernmenthasdevelopednewcapitalmarkettoolstoincentivizeforeigninvestorstofundlocal transportation infrastructure projects. Infrastructure debentures (Debentures de Infraestrutura)were created in 2010, offering non-resident investors an exemption from corporate income tax andfinancialtransactionstax.

Non-residentinvestorscanalsoenterthemarketthroughinfrastructure-linkedinvestmentfunds(FundosdeInvestimentoemDireitosCreditorios–FIDCs).Withthisfundingmechanism,non-residentinvestorsareexemptfromincometaxandfinancialtransactiontaxesforinvestmentsinfundsallocatingatleast85%ofthefund’sassetstoInfrastructureDebentures.

7.2 TheBrazilianDevelopmentBank(BNDES)

TheBrazilianDevelopmentBank(BNDES)isastate-ownedbankthatservesasakeyforcefornation-wideeconomicdevelopment.TheBNDES’mandateistofostersustainable,competitivedevelopmentintheBrazilianeconomyandtosupport jobcreationwhilecontributingtoareduction insocialandregionalinequality.TheBNDESisthemainfinancingagentfordevelopmentinBrazil.Sinceitsfoundingin1952,thebankhasplayedafundamentalroleinsupportingtheexpansionofindustryandinfrastructureacrossthecountry.

OverthecourseofBNDES’history, itsoperationshaveevolvedaccordingtoprevalentsocio-economicchallenges which currently include support for exports, technological innovation, sustainable socio-environmental development and the enhancement of public administration. The bank offers severalfinancialsupportmechanismstoprivatecompaniesofallsizes,headquarteredandadministeredinBrazil,

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ultimatelyenablinginvestmentsinalleconomicsectors.Indeterminingwhethertofinanciallysupportacompanyorproject,BNDESconsidersthreefactors:strategicinnovation,localdevelopmentandsocio-environmentaldevelopment.

Thebankcanprovide financial support tocompaniesestablished inBrazil through threemechanisms:financing,non-reimbursablefundsandsubscriptiontosecurities.

7.2.1 BNDESFinancing

BNDESprovidesfinancingearmarkedforinvestmentprojects,newmachineryandequipment,exportsofmachinery,domesticequipmentandservices,theacquisitionofgoodsandproductioninputs.Financingmodalitiesaredividedintoproductsaccordingtotheundertaking’spurpose.Theseproductsdefinethegeneralrulesofapplicablefinancialconditionsandtheoperatingproceduresforfinancing.

Some products are considered financing lines, aimed at certain clients, sectors and undertakings andthereforehavemorespecificrules.Amongthebank’sproductsisBNDESProjectFinance,earmarkedforthefinancialstructuringofinvestmentprojectsandcontractuallysupportedbyprojectcashflow.Assetsandreceivables(asset-backed)mayserveasguaranteesforthesameundertaking.Additionally,BNDESoffersfinancingprogramsofatransitionalnature,whicharefocusedonaparticulareconomicsegment.

7.2.2 BNDESNon-RepayableFunds

BNDESoffersinvestmentsofasocial,cultural(educationalandresearch),environmental,scientificandtechnologicalnature,whichdonotneedtoberepaid.

7.2.3 BNDESSubscriptionofSecurities

BNDES may participate as a subscriber of securities, i.e., shares, simple debentures, convertibledebentures, subscriptionbonds,optionsandotherderivativeproducts.BNDESmayalsoparticipate inasset-backed (receivables) investment funds (FIDC) in publicly-listed companies, in public or privateissuances, or in companies thatmay join the capitalmarket for the short ormedium term throughaprivateissuance.Insomespecificcases,theBankmayprovidefinancialsupportinamixedmanner,orfinancepartofaprojectandusethesubscriptionofsecuritiesfortherest.

BNDESiscurrentlythelargestfinancingpartnerfortransportationinfrastructureprojectsinthecountry.Thebankprovidescorporatefinanceandprojectfinance,whichiswhenBNDESfundsaspecificproject,notthecompany,byprovidingloanstoaspecialpurposevehicle-SPV-constitutedtoexecutetheproject.Foreign firmsareeligible toapply forBNDES financing,aswellascompaniescontrolledbyBraziliancapital.

BNDEScanprovideloanscoveringupto70%ofthetotalvalueofprojectsforairports,highwaysandports,andupto90%forrailways.PartofBNDESfinancingcanbeofferedatacompetitiveinterestratecalledtheLong-TermInterestRate(TaxadeJurosdeLongoPrazo,‘TJLP’),whiletheremainingportionofBNDESfinanceisprovidedatmarketrates.

7.2.4 SummaryofFinancialFacts(BNDES)toSupporttheTransportationSector

BNDEShasbeenthefinancial forcebehindthesuccessofmanytransportationconcessionprojectsforover ten years. Thenew roundof airport, highway,port and railway concessionswill alsodependonBNDESfinancialsupport,howeveratdifferentfinancinglevelsthaninpreviousconcessionprograms.For

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thenextroundoftransportationconcessions,theprivatesector isrequiredtosupplyahigher levelofcapitaltofinanceprojects.

7.3 OtherFinancialInstitutions

7.3.1 TheExport-ImportBankoftheUnitedStates

TheExport-ImportBankoftheUnitedStates(Ex-ImBank)isaGovernmentagencythatprovidesavarietyof loan,guaranteeand insuranceproducts intended toaid theexportofU.S.goodsandservices.ThemissionoftheBankistocreateandsustainU.S.jobsbyfinancingsalesofU.S.exportstointernationalbuyers.TheBankischarteredasagovernmentcorporationbytheU.S.Congress.TheEx-ImBankdoesnot compete with private sector lenders, but rather provides financing for transactions that wouldotherwisenottakeplacebecausecommerciallendersareeitherunableorunwillingtoacceptthepoliticalorcommercialriskinaparticularbusinessdeal.

TheEx-ImBank'sproductsaimtosupportexportsales foranyU.S.export firmregardlessofsize.Thebank'scharterprovidesthatEx-ImBankmakesavailablenotlessthan20%ofitslendingauthoritytosmallbusinesses.FormoreinformationonEx-ImBankpleasevisitwww.exim.gov.

7.3.2 OverseasPrivateInvestmentCorporation(OPIC)

The Overseas Private Investment Corporation (OPIC) is the U.S. Government’s development financeinstitutionthatworkswithfinancinginsuranceandinvestmentfundstosupporttheU.S.privatesector.It mobilizes private capital to help solve critical development challenges and in doing so, advancesU.S.foreignpolicyandnationalsecurityobjectives.OPICsupportsU.S.privateinvestmentinmorethan160developingcountriesaroundtheworldinproductsthatproduceimportanteconomic,environmentalanddevelopmentalbenefits.OPICcatalyzesrevenues,jobsandgrowthopportunitiesfromEuropetotheMiddleEast,aswellasAfricatoAsiaandLatinAmerica.

Projects range from those in the renewable resources sector to food, health, tourism, infrastructure,microfinance,financialservicesandtechnologyandcommunications.Todate,OPIChassupportedmorethan$200billionofinvestmentinmorethan4,000projects.FormoreinformationonOPICpleasevisitwww.opic.gov.

7.3.3 InternationalFinanceCorporation(IFC)

TheInternationalFinanceCorporation(IFC)isamemberoftheWorldBankGroup,andisthelargestglobaldevelopmentinstitutionfocusedexclusivelyontheprivatesectorindevelopingcountries.TheIFCoffersinvestment,advisoryandassetmanagementservicestoencourageprivatesectordevelopment.TheIFCandleveragesitsproductsandservicestoprovidedevelopmentsolutionscustomizedtomeettheclients’needs.TheIFCappliesfinancialresources,technicalexpertiseandglobalexperiencetoassistclients inovercomingfinancial,operationalandpoliticalchallenges.

Since2009,theIFChasfocusedonasetofdevelopmentgoalsthatitsprojectsareexpectedtotarget.Itsgoalsaretoincreasesustainableagricultureopportunities,improvehealthandeducation,increaseaccessto financing formicrofinanceandbusiness clients, advance infrastructure,help smallbusinessesgrowrevenues and invest in climate health. The corporation also offers advice to companies on makingdecisions,evaluatingtheirimpactontheenvironmentandsocietyandcorporateresponsibility.ItadvisesGovernmentsonbuildinginfrastructureandpartnershipstofurthersupportprivatesectordevelopment.ForadditionalinformationontheIFCpleasevisitwww.ifc.org.

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7.3.4 MultilateralDevelopmentBanks

MultilateraldevelopmentbanksarealsopresentinBrazilsupportingthecountryinmanysectorssuchastheWorldBank(WB)andtheInter-AmericanDevelopmentBank(IDB).Theseinstitutionslendmillionsofdollars to the BrazilianGovernments (mostly federal and state) on projects that accelerate economicgrowthandsocialdevelopmentbyreducingpovertyandinequality,improvinghealthandeducationandadvancing infrastructuredevelopment.TheWBandthe IDBarebothproviding technicaland financialassistancetotheBrazilianGovernmentinthelatestinfrastructuredevelopmentandconcessionprogramannouncedin2015.

Fromtimetotime,thesedevelopmentbankspubliclyannounceaRequestforProposal(RFP)processfortechnical services such as feasibility studies, engineering, finance, project development, constructionoversightandothers to supportactivitiesbeing financedby thebanks. TheseopportunitiesaremadepublicthroughtheWBandIDBwebsites:www.worldbank.organdwww.iadb.org.

7.4 AdditionalOrganizationsPromotingU.S.ExportsinBrazil

7.4.1 U.S.TradeandDevelopmentAgency

TheU.S.TradeandDevelopmentAgencyhelpscompaniescreateU.S. jobs through theexportofU.S.goodsandservicesforprioritydevelopmentprojectsinemergingeconomies.USTDAlinksU.S.businessestoexportopportunitiesbyfundingprojectplanningactivities,pilotprojectsandreversetrademissionswhile creating sustainable infrastructure andeconomic growth in partner countries.USTDApromoteseconomicgrowthinemergingeconomiesbyfacilitatingtheparticipationofU.S.businessesintheplanningandexecutionofprioritydevelopmentprojectsinhostcountries.TheAgency’sobjectivesaretohelpbuildtheinfrastructurefortrade,matchU.S.technologicalexpertisewithoverseasdevelopmentneeds,andhelpcreatelastingbusinesspartnershipsbetweentheUnitedStatesandemergingeconomies.

7.4.2 TheU.S.CommercialService

The U.S. Commercial Service is the trade promotion arm of the U.S. Department of Commerce’sInternationalTradeAdministration.TheU.S.CommercialServicehasitsmainofficeattheU.S.EmbassyinBrasilia,withotheroffices located inU.S. Consulates across the country. Theirmainpurpose is topromote U.S. exports and to connect U.S. companies with international buyers by providing marketintelligence,tradecounseling,businessmatchmakingandadvocacy/commercialdiplomacysupport.

TheU.S.CommercialServiceofferscustomizedsolutionstohelpU.S.exporters(smallandmediumsizedbusinesses)successfullyexpandtheirexportstonewmarkets.TheCommercialService’sglobalnetworkoftradespecialistsworkone-on-onewithU.S.companyrepresentativesby:

Ø TargetingmarketswiththeCommercialService’sresearch;Ø PromotingU.S.companyproductsandservicestoqualifiedbuyers;Ø Arrangingmeetingswiththeappropriatedistributors/agentsforU.S.productsandservices;Ø SupportingU.S.companiesinovercomingpotentialchallengesortradebarriers;andØ FacilitatingaccesstoafullrangeofU.S.Governmenttradepromotionagenciesandtheirservices,

includingexporttrainingandpotentialtradefinancingsources.

U.S.exportersseekinggeneralexportinformation/assistanceorcountry-specificcommercialinformationcancontacttheU.S.CommercialServicetradeprofessionalsinBrazil.

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7.4.3 TheBrazil-U.S.BusinessCouncil

TheBrazil-U.S.BusinessCouncil(BUSBC) isabusinessadvocacyorganizationdedicatedtostrengtheningtheeconomicandcommercialrelationshipbetweenthetwocountries.TheCouncil’smissionistoprotect,maintainandadvancetradeandinvestmentbetweentheUnitedStatesandBrazilthroughfreetrade,freemarketandfreeenterprise.TheU.S.sectionoftheCouncilrepresentsthemajorU.S.companiesinvestedin Brazil andoperates under the administrative aegis of theU.S. Chamber of Commerce,maintainingindependentpolicyformulationandmembership.

The Brazil Section is managed by the National Confederation of Industry (CNI), composed of the 27Brazilianstate-levelfederationsofindustry.TheCouncilhasaProgramofWorkwhichidentifiesthekeypolicyareasthattheCounciladdressesthroughouttheyearandhighlightstheinitiativesthatthecouncilplanstopursue.ForadditionalinformationonBUSBC,pleasevisitwww.brazilcouncil.org

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AppendixA

ListofAirportConcessionairesinBrazilSource:www.ABCR.org.br

BrasiliaAirportInframericaAeroportodeBrasíliaAreaEspecial,LagoSulCEP:71608-900|DF|Telephone:+55(61)3214-6181/[email protected](BH)AirportBHAirportRodoviaLMG800,Km7,9,s/nConfins-MG,33500-900Telephone:+55313689-6800/+55319975-7439E-mail:[email protected](SaoPaulo)Invepar-ACSAAv.AlmiranteBarroso,5230thFloor-CentroZipCode20031-000-RiodeJaneiro/[email protected]:+55(21)2211-1300www.invepar.com.br

ViracoposInternationalAirportAeroportosBrasilRodoviaSantosDumont,Km66Campinas/SP-13.052-901–Telephone:55(19)3725-5000www.viracopos.comRioGaleao(RiodeJaneiro)Av.VintedeJaneiro,s/nºIlhadoGovernador-RiodeJaneiroCEP:21941-900Telephone:+55213004-6050/+552199332-4247E-mail:[email protected]

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ListofHighwayConcessionairesinBrazil(FederalandStateConcessions)

ConcessionairesinFederalRoads

CONCEPAWebsite:www.concepa.com.br

Telephone:+55(51)3027-7400email:[email protected]

CONCERWebsite:www.concer.com.br

Telephone:+55(21)2676-1400email:[email protected]

CRO-ConcessionariaRotadoOesteWebsite:http://www.rotadooeste.com.br/

Telephone:+55(65)3056-9199email:[email protected]

CRTWebsite:www.crt.com.br

Telephone:+55(21)2777-8300email:[email protected]

ECO101Website:http://www.eco101.com.br/

Telephone:+55email:

ECOSULWebsite:www.ecosul.com.br

Telephone:+55(53)2128.4400email:[email protected]

FERNAODIASWebsite:www.autopistafernao.com.br

Telephone:+55(35)3449-6600email:[email protected]

FLUMINENSEWebsite:www.autopistafluminense.com.br

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Telephone:+55(21)2607-9800LITORALSULWebsite:www.autopistalitoralsul.com.br

Telephone:+55(47)3177-0700email:[email protected]

MGORODOVIASWebsite:http://www.mgorodovias.com.br/Telephone:+55(34)3291-8000email:[email protected]:http://www.msvia.com.br/NOVADUTRAWebsite:www.grupoccr.com.br/novadutra

Telephone:+55(11)2795-2400email:[email protected]

PLANALTOSULWebsite:www.autopistaplanaltosul.com.br

Telephone:+55(47)3641-5300email:[email protected]

PONTEWebsite:www.grupoccr.com.br/ponte

Telephone:+55(21)[email protected]

RÉGISBITTENCOURTWebsite:www.autopistaregis.com.br

Telephone:+55(13)3828-1600email:[email protected]

RODOVIADOACOWebsite:www.rodoviadoaco.com.br

Telephone:+55(24)2491-9600email:[email protected]

TRANSBRASILIANA

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Website:www.transbrasilianasa.com.br

Telephone:+55(14)3533-2950email:[email protected]

VIABAHIAWebsite:www.viabahiasa.com.br

Telephone:+55(71)3025-9800e-mail:[email protected]

ConcessionairesintheStateofBahia

BAHIANORTEWebsite:www.cbnorte.com.br

Telephone:+55(71)3023-6300email:[email protected]

CLNWebsite:www.clnorte.com.br

Telephone:+55(71)3623-8000email:[email protected]

ConcessionairesintheStateofEspíritoSanto

RODOSOLWebsite:www.rodosol.com.br

Telephone:+55(27)3334-7800email:[email protected]

ConcessionairesintheStateofParana

CAMINHOSDOPARANAWebsite:www.caminhosdoparana.com.brTelephone:+55(42)3421-2330email:[email protected]

ECOCATARATASWebsite:www.ecocataratas.com.brTelephone:+55(45)3218-2900email:[email protected]

ECONORTE

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Website:www.econorte.com.brTelephone:+55(43)3377-1551email:[email protected]

ECOVIAWebsite:www.ecovia.com.brTelephone:+55(41)3381-6500email:[email protected]

RODONORTEWebsite:www.rodonorte.com.brTelephone:+55(42)3220-2900email:[email protected]

VIAPARWebsite:www.viapar.com.brTelephone:+55(44)3033-6000email:[email protected]

ConcessionairesintheStateofRioGrandedoSul

BRITAWebsite:www.britarodovias.com.br

Telephone:+55(54)3036-2600email:[email protected]

CONVIASWebsite:www.univias.com.br

Telephone:+55(51)3778-2626email:[email protected]

COVIPLANWebsite:www.coviplan.com.br

Telephone:+55(54)3330-2100email:[email protected]

METROVIASWebsite:www.univias.com.br

Telephone:+55(51)3778-2626email:[email protected]

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RODOSULWebsite:http://www.rodosul.com.br/

Telephone:+55(54)3232-2414email:[email protected]

SANTACRUZWebsite:www.santacruzrodovias.com.br

Telephone:+55(51)2106-3000email:[email protected]

SULVIASWebsite:www.univias.com.br

Telephone:+55(51)3778-2626email:[email protected]

ConcessionairesintheStateofRiodeJaneiro

ROTA116Website:www.rota116.combr

Telephone:+55(22)2525-1116email:[email protected]

VIALAGOSWebsite:www.grupoccr.com.br/vialagos

Telephone:+55(21)3634-9800email:[email protected]

ConcessionairesintheStateofMinasGerais

NASCENTESDASGERAISWebsite:www.nascentesmg.com.br

Telephone:+55(37)3229-0050email:[email protected]

ConcessionairesintheStateofPernambuco

ROTADOATLANTICOTelephone:+55(81)3327-1877ROTADOSCOQUEIROSWebsite:www.rotadoscoqueiros.com.br

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Telephone:+55(81)3479-8601email:[email protected]

ConcessionairesintheStateofSaoPaulo

AUTOBANWebsite:www.grupoccr.com.br/autoban

Telephone:+55(11)4589-4000email:[email protected]

AUTOVIASWebsite:www.autovias.com.brTelephone:+55(16)2102-4200email:[email protected]

CARTWebsite:www.cart.invepar.com.brTelephone:+55(14)3104-2300CENTROVIASWebsite:http://www.centrovias.com.br/Telephone:+55(16)3363-8300email:[email protected]

COLINASWebsite:www.rodoviasdascolinas.com.brTelephone:+55(11)2118-9750email:[email protected]

ECOPISTASWebsite:www.ecopistas.com.brTelephone:+55(11)4646-3400email:[email protected]

ECOVIASWebsite:www.ecovias.com.brTelephone:+55(11)4358-8690email:[email protected]

INTERVIASWebsite:www.intervias.com.br

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Telephone:+55(19)3543-6000email:[email protected]

RENOVIASWebsite:www.renovias.com.brTelephone:+55(19)3814-2000email:[email protected]

RODOANELOESTEWebsite:www.rodoaneloeste.com.brTelephone:+55(11)2664-6001RODOVIASDOTIETÊWebsite:www.rodoviasdotiete.com.brTelephone:+55(11)4602-7900email:[email protected]

ROTADASBANDEIRASWebsite:www.rotadasbandeiras.com.brTelephone:+55(11)4894-8500email:[email protected]

SPMARWebsite:http://www.spmar.com.brTelephone:+55(11)4668-6200email:[email protected]

SPViasWebsite:www.spvias.com.brTelephone:+55(15)3259-8000email:[email protected]

TEBEWebsite:www.tebe.com.brTelephone:+55(17)3344-0011email:[email protected]

TRIÂNGULODOSOLWebsite:www.triangulodosol.com.brTelephone:+55(16)3383-6300email:[email protected]

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VIANORTEWebsite:www.vianorte.com.brTelephone:+55(16)3601-1122email:[email protected]

VIAOESTEWebsite:www.viaoeste.com.brTelephone:+55(11)2664-6000VIARONDONWebsite:www.viarondon.com.brTelephone:+55(14)3533-2699email:[email protected]

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ListofRailwayConcessionairesinBrazilSource:www.antt.gov.br

ALL-AméricaLatinaLogística(MS-MalhaSul)Website:http://ir.all-logistica.comAlexandredeJesusSantoroDirectorPresidentTelephone:+55(41)2141-7366/7509/7910/7912email:[email protected],[email protected],vera@all-logistica.comRodrigoBarrosdeMouraCamposChiefFinancialandInvestorRelationsOfficerTelephone:+55(41)2141-7459email:olivia@all_logistica.comALL-AméricaLatinaLogística(MO-MalhaOeste,MP-MalhaPaulista,MN-MalhaNorte)Website:http://ir.all-logistica.comAlexandredeJesusSantoroDirectorPresidentTelephone:+55(41)2141-7366/7509/7910/7912email:[email protected],[email protected],vera@all-logistica.comRodrigoBarrosdeMouraCamposChiefFinancialandInvestorRelationsOfficerTelephone:+55(41)2141-7459email:olivia@all_logistica.comVLI(FCA-FerroviaCentroAtlanticaeFNS-FerroviaNorte-Sul)Website:http://www.vli-logistica.com/pt-br.aspxMarcelloMagistriniSpinelliDirectorPresidentandInvestorRelationsTelephone:+55(31)3279-4486/5672/5746email:Izabel.turquia@vli_logistica.comFerroeste–EstradadeFerroParanáOesteS/AWebsite:http://www.ferroeste.pr.gov.br/JoaoVicenteBrasilinAraújoDirectorPresidentTelephone:+55(41)3281-9800email:beatrizklein@ferroeste.pr.gov.brFTC-FerroviaTerezaCristinaWebsite:http://www.ftc.com.br/BenonySchmitzFilhoDirectorPresidentTelephone:+55(48)3621-7705/7720email:[email protected]

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MRSLogísticaS/AWebsite:http://www.mrs.com.br/ingles/index.phpEduardoParenteMenezesPresidentTelephone:+55(32)3239-3600/3601email:[email protected],fernanda.ferreira@mrs.com.brElviraCavalcanteChiefFinancialOfficerandInvestorRelationsTelephone:+55(21)2559-4600email:[email protected]ísticaS/AWebsite:http://www.tlsa.com.brAngeloJosedeCarvalhoBaptistaPresidentTelephone:+55(85)4008-2500email:[email protected](EFVM-EstradadeFerroVitóriaaMinas,EFC-EstradadeFerroCarajás)Website:http://www.vale.com/EN/business/logistics/railways/Pages/default.aspxFabioCostaBrasileirodaSilvaDirectorofPlanningandDevelopment–DIPDTelephone:+55(21)3814-9938/3454/4293/9413/9479email:[email protected],[email protected],[email protected]

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AppendixBListofConsortiumsthatCompetedtohaveViabilityStudiesSelectedbySAC

PMIforAirports InterestedCompanies Florianopolis Fortaleza Porto

AlegreSalvador Total

Studies AeroBrasilConsortium:VeraxConsultoriaeProjetosLtda,EmpresaBrasileiradeEngenhariadeInfraestruturaLtda,FernandesArquitetosAssociadosS/AandGeoBrasilisConsultoria.

4

Construcap-CCPSEngenhariaeComercioS.A.

4

Ernst&YoungAssessoriaEmpresarialLtda.

4

HelportConstrucoesdoBrasilS.A.andCorporacionAmericaS/A

4

Movses&PiresSociedadedeAdvogados,BFCapital,JGPConsultoria,Logit,M&PEProficenter|

4

P2GestaodeRecursosLtda.

4

PROSUL-Projetos,supervisaoeplanejamentosLtda.

1

RadarPPPLtda,PricewaterhousecoopersServicosProfissionaisLtda,PricewaterhousecoopersCorporateFinance&RecoveryLtdaeIdomConsultoriaLtda.

4

SeteplaTcnomentalS.A,SenerIngenieriaySistemansS.A.eAtpEngenhariaLtda.

4

TPI-TriunfoParticipacoeseInvestimentosS.A.

4

Total 10 10 9 9 -

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WebResources

ABCR BrazilianAssociationofHighwayConcessionaires–www.abcr.org.br

ABEAR BrazilianAssociationofAirlinesCompanies–www.abear.com.br

ABIFER BrazilianAssociationofRailroadIndustry-www.abifer.org.br

ABTP BrazilianAssociationofPortTerminals-www.abtp.org.br

ANAC NationalAgencyofCivilAviation-www.anac.gov.br

ANPTRILHOS NationalAssociationofPassengerRailOperators–www.anptrilhos.org.br

ANTAQ NationalWaterwayTransportationAgency–www.antaq.gov.br

ANTP NationalAssociationofPublicTransportation-www.antp.org.br

ANTT NationalLandTransportationAgency-www.antt.gov.br

BNDES BrazilianDevelopmentBank–www.bndes.gov.br

EPL TheLogisticsandPlanningCompany–www.epl.gov.br

INFRAERO BrazilianAirportOperator-www.infraero.gov.br

MOT MinistryofTransport–www.transportes.gov.br

SAC SecretariatofAviation–www.sac.gov.br

SEP ExecutiveSecretariatofPorts–www.sep.gov.br

U.S.CS CommercialService-www.export.gov

USTDA U.S.TradeandDevelopmentAgency–www.ustda.gov

VALEC Brazil'sFederalRailCompany–www.valec.gov.br

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Glossary

AL StateofAlagoas

AM StateofAmazonas

ANAC NationalCivilAviationAgency

ANBIMA BrazilianAssociationofFinancialandCapitalMarketsEntities

ANEEL NationalElectricEnergyAgency

ANTAQ NationalWaterwayTransportationAgency

ANTT NationalLandTransportationAgency

AP StateofAmapa

APTS AdvancedPublicTransportationSystems

ARFF AirRescueandFireFighting(equipment)

ARTESP SaoPaulo’sRegulatingAgencyforPublicTransportationServices

ATC AirTrafficControl

AVL AutomatedVehicleLocationSystem

BA StateofBahia

BNDES NationalBankforEconomicandSocialDevelopment

BRICS Brazil,Russia,India,China,SouthAfrica

BRT BusRapidTransit

CAPA CenterforAviationofBrazil

CCO OperationalControlCenter

CCTV ClosedCircuitTelevision

CCTV-IVA ClosedCircuitTelevision-IntelligentVideoAnalysis

CE StateofCeara

CVM BrazilianSecuritiesandExchangeCommission

DAESP SaoPaulo’sDepartmentofAviation

DECEA Brazil’sDepartmentofAirspaceControl

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DETRAN NationalDepartmentofTransportation

DF FederalDistrict

EPTC PortoAlegre’sPublicAgencyforTransportationandCirculation

EPVS EnhancedPredictionVerificationSystem

ES StateofEspiritoSanto

ETC ElectronicTollCollection

Ex-Im ExportImportBankoftheUnitedStates

FAA FederalAviationAdministration(U.S.)

FBO FixedBaseOperator

FINAC NationalCivilAviationFund

GDP GrossDomesticProduct

GE GeneralElectric

GIF GlobalInfrastructureFacility

GKS GoldKeyService

GO StateofGoias

GPS GlobalPositioningSystem

IADB Inter-AmericanDevelopmentBank

IBGE BrazilianInstituteofGeographyandStatistics

IC InformationandCommunicationsTechnology

IFC InternationalFinanceCorporation

IT InformationTechnology

ITS IntelligentTransportationSystems

IRR InternalRateofReturn

Km Kilometer

LI SiteLicense

LP AdvanceLicense

MA StateofMaranhao

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MF MinistryofFinance

MG StateofMinasGerais

MIGA MultilateralInvestmentGuaranteeAgency

MOT MinistryofTransportation(Brazil)

MTS StateofMatoGrosso

MRE BrazilMinistryofExternalRelations

MRO Maintenance,Repairs,andOverhaul

MS StateofMatoGrossodoSul

NTCIP NationalTransportationCommunicationsforITSProtocol

OCR OpticalCharacterRecognition

OECD OrganizationforEconomicCooperationandDevelopment

OPIC OverseasPrivateInvestmentCorporation

PDAR RegionalAviationDevelopmentProgram

PMI ProcessforManifestationofInterest

PPP PublicPrivatePartnership

PTC PositiveTrainControl

RECEI CollectionofElectronicInformationSystem(StateofPara)

RESA RequiredSafetyArea

RFID RadioFrequencyIdentification

RJ StateofRiodeJaneiro

RO StateofRondonia

RTM ReverseTradeMission

SAC SecretariatofCivilAviation

SC StateofSantaCatarina

SE StateofSergipe

SEAE SecretariatforEconomicMonitoring

SEIL SecretariatofInfrastructureandLogistics(StateofParana)

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SEINFRA SecretariatofInfrastructure(StateofBahia)

SIM IntegratedMonitoringSystem

SME SmallMediumEnterprise

SEP SecretariatofPorts

SP StateofSaoPaulo

SPTRANS SaoPauloTransportationSecretariat

TCU BrazilianFederalCourtofAudit

TO StateofTocantins

TSA TransportationSecurityAdministration(U.S.)

TUP PrivateUseTerminal

USDOT U.S.DepartmentofTransportation

VLT LightRailVehicle

VTMS VesselTrafficManagementSystem

WACC WeightedAverageCostofCapital

WB WorldBank

WG WorkingGroup

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ACKNOWLEDGEMENTS TheauthorofthisguidewouldliketoexpressitsappreciationtothestaffofUSTDA’sLatinAmericanandCaribbeanRegion, includingMr.NathanYounge,Ms.GabrielleMandel,Ms. IsabelSepulveda,andMr.RodrigoMota,thestafffromtheU.S.StateDepartment,Ms.LindseyM.ZuluagaandMr.FranciscoSadeck,thestafffromtheU.S.CommercialService,Mr.AndrewGately,Ms.EbeRaso,andMr.GenardH.Burity,aswellasMr.JoaoR.Silva,fromtheFederalAviationAdministrationfortheiroutstandingsupportandvaluablecontributionsduringthedevelopmentofthisresourceguide.

DISCLAIMERThematerialcontainedinthisGuideisintendedtoprovidegeneralinformationonly.Beforeenteringintoanycommercialtransactionsoractivities,readersarestronglyadvisedtoseekindependentprofessionaladviceinordertovalidateandsupplementtheinformationprovidedinthisGuide.Whileeveryefforthasbeentakentoensuretheaccuracyofthisguide,theauthorandtheU.S.TradeandDevelopmentAgency,includingallaffiliatedagencies,bodies,officers,employeesandagents,acceptnoliabilityorresponsibilityforanyloss,damageorexpensearisingoutof,orinconnectionwith,anyrelianceuponorinaccuraciesoromissions in the material contained in this Guide. No warranty is given or responsibility acceptedregardingthestandingofanyindividual,firm,companyoranyotherorganization.

ThematerialusedinthisGuidehasbeenobtainedinpartfrompubliclyavailabledatapreparedand/orreleasedbythirdpartysources.AlldollarfiguresshownbythesymbolU.S.$inthisguidedenoteUnitedStatesdollarsunlessotherwiseindicated.AnexchangerateofU.S.$1=R$3.1hasbeenadoptedinthisguide,which represents the approximate average currency rate during the time that estimateswereoriginally developed for projects identified in thisGuide. Project cost estimateswere not adjusted toreflecttheaveragecurrencyrateoftheBrazilianRealatthecompletionofthisGuideinMayof2016.

HEPTransportationConsulting2245RivermontPlaceCharleston,SC29414Tel:(843)804-5133Email:[email protected]