Thursday, June 30, 2011

Brazilian airport upgrades set to take off

It is no secret that the improvement of airports across Brazil is one of the most pressing requirements ahead of the 2014 World Cup and, thankfully, the wave of upgrades has now well and truly begun, even if a little later than expected.

The biggest development in recent months, particularly in terms of international business opportunities, is the proposed privatisation of three key airports (Guarulhos in Sao Paulo, Viracopos in nearby Campinas and Brasilia´s international airport), a process that is currently on the agenda of the federal government and the National Civil Aviation Agency (ANAC). President Dilma Rousseff has promised that the tender procedures for all three will be underway by December this year, while just this week ANAC has called for expressions of interest from companies keen to be involved with expansion, maintenance and concession activities at these airports.

Alongside the privatizations, upgrade plans are moving ahead at pace right around the country with the tender processes for major works at Guarulhos, Manaus, Florianopolis and Campinas airports all currently underway, while smaller upgrades are also rolling out across a number of other facilities. Furthermore, future privatizations are also scheduled for Rio´s and Belo Horizonte´s international airports.

To give some idea of the scope of works, plus accompanying business opportunities, the project for the third terminal at São Paulo´s Guarulhos airport has been split into two parts, with the first 40% set to cost R$ 716.6 million and be finished by the end of 2013. The remaining works to complete the 230,000sqm facility should be finished by 2016, giving the airport a new working capacity of 44.8 million passengers per year. In 2010, more than 25 million passengers used the heavily overloaded airport.

In total, 16 airports across Brazil are receiving upgrades as part of preparations for the 2014 World Cup, many requiring works of similar dimensions to Guarulhos.