Investment opportunity in Brazil as McKinsey study finds $19 Billion requirement for various airport developments | Invest in Brazil

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Investment opportunity in Brazil as McKinsey study finds $19 Billion requirement for various airport developments


In a study done by McKinsey, an international consultancy firm, Brazil needs to make about US$19 billion of investments into its airport infrastructure. The study found that Brazil’s 20 main airports need massive investments in upgrades to enable them cater for the growing passenger traffic demand up to 2030. The study further concludes that airports such as the Viracopos international airport in Sao Paolo may need up to 4-6 billion reals to enhance its capacity to handle passenger traffic in its metropolitan area, the most congested in the country.

 

On the other hand, the state’s Congonhas airport was said to be in dire condition, with capacity levels already exceeded, revealed the study. Only tow Brazilian airports were found to be in better condition, the Galeao airport in Rio de Janeiro, and the Curitiba airport in Parana state. The report detailing the research and its findings was released by McKinsey’s project manager for the study of infrastructure component, Luiz Valmont.

 

The study, aimed at analyzing the prevailing situation in the country’s 20 major airports was done in seven months time, ending in June and mainly recommends what has to be done for Brazilian airports to better handle passenger traffic demand up to the year 2030. The massive infrastructural improvements recommended are the result of the realization that the country may need to double its airports if it is to meet burgeoning projected demand in the future.

 

Currently, 55 airports offer regular flights in the country but by 2030, the number of airports offering regular flights may need to double to more than 100 to meet demand, said the firm’s administrative project manager, Arlindo Eira Filho. The firm researched on airports such as Sao Paolo’s Guarulhos, Congonhas and Viracopos airports, Rio de Janeiro’s Galeao and Santos Dumont airports, Belo Horizonte’s Confins and Pampulha airports.

 

The remaining airports included were Porto Alegre (Rio Grande do Sul state), Curitiba (Parana), Recife (Pernambuco), Salvador (Bahia) Fortaleza (Ceara), Manaus (Amazonas), Cuiaba (Mato Grosso), Natal (Rio Grande do Norte), Florianopolis (Santa Catarina), Vitoria (Espirito Santo), Belem (Para), Goiania (Goias) and Brasilia (Distrito Federal).

 

The study was financed by BNDES, a state run development bank responsible for financing major investments in the country. The BNDES Credit Lines comprise long-term financing, at competitive interest rates, for the development of investment projects, the commercialization of machinery and equipment, and the growth of Brazilian exports. Credit lines and programs provided by the BNDES serve the investment needs of companies of any size and sector set up in Brazil.

 

June 18, 2010.