The Central-West region needs R$ 36 billion in infrastructure.

Stênio Ribeiro

Reporter from Agência Brasil

Brasilia – The Central-West Region needs investments of R$ 36,4 billion by 2020 to ensure the agile and efficient flow of agricultural production. This amount is necessary for the execution of 106 priority projects to expand and modernize transportation infrastructure in the Federal District (DF), Mato Grosso, Mato Grosso do Sul, and Goiás, according to a survey conducted by representative entities of industry and agriculture in the region.

The research, coordinated by the National Confederation of Industry (CNI) and the Confederation of Agriculture and Livestock of Brazil (CNA), gave rise to the Competitive Center-West Project, to be released this Tuesday (29), as part of the survey of the country's priority needs, already carried out in the North, Northeast and South regions. The mapping of the Southeast Region should be ready by mid-2014.

The Competitive Central-West Project ensures that the region's productive sector spends R$ 60,9 billion annually on freight transport, equivalent to 8,7% of the Gross Domestic Product (GDP), the sum of the wealth produced in the Federal District and the three states. These expenses could be reduced by R$ 7,2 billion per year with the implementation of priority projects for the construction of an adequate logistics network.

The Central-West region is responsible for almost half of the grains produced in Brazil, according to the president of the CNA (National Confederation of Agriculture), Senator Kátia Abreu (PMDB-TO), and although 56% of the production is above the 16th parallel, only 14% is shipped through the ports of the North and Northeast. Only with massive investments in infrastructure, says the senator, taking advantage of the rivers, "will it be possible to reverse this logic that overloads the ports of the South and Southeast, lower transportation costs and preserve the environment."

According to Robson Andrade, president of the CNI (National Confederation of Industry), by identifying the investments that would most help reduce the country's logistics costs, business leaders contribute to medium- and long-term government planning. He stated that "industry can and wants to participate in the effort to recover and modernize the country's infrastructure," because an integrated and efficient transportation network "facilitates the distribution of products, reduces costs, and increases Brazilian competitiveness."

The Competitive Midwest report highlights that of the 106 priority projects for the region, 19 (16,4%) are underway. The others are in the design phase or only in government plans. The survey by CNI and CNA identified 26 projects in rail transport, with costs of R$ 17,5 billion; 24 projects in port infrastructure, which will require R$ 8,4 billion; and 34 essential works to improve river transport, with investments of R$ 6,7 billion.

The project released today is the fourth publication in the Regional Competitiveness Studies series, sponsored by the CNI (National Confederation of Industry) and state industry federations. The four studies identified 205 priority projects, involving investments of R$ 55 billion over the next seven years.