Bahia Basics facts

Predictability, good regulation and respect for contracts.

 Bahia is a new growth engine

Source: International Trade Statistics-2008

BAHIA INFRASTRUCTURE PROJECTS
BAHIA INFRASTRUCTURE PROJECTS
Brazilian Macroeconomics
BAHIA INFRASTRUCTURE PROJECTS
 Railroad Transulamericana

Liking
With the Pacific
Puerto Bayovar
PERU

Linking with the

Atlantic South Port
to the North of the
Port of Ilhéus **
- BAHIA
International Trade Outlook
 Brazil - Merchandise Exports by Region,2009

Source: International Trade Statistics-2008

Strategic Logistic and Transport Plan
Commodities leads the way
Bahia Iron Ore Reserves
 Bahia East-west Railroad
Bahia Port / Caetité
Extension: 505 km
Caetité / Luis Eduardo Magalhães
Extension: 470 km
Total Value: R$ 2,8 billions
Term: 2011
Bahia Challenges & Opportunities

Bahia in
The Brazilian Strategy

Space Repercussion and

Territoty
Global Development 2010: Shifting Wealth
 Perspectives on Global Development 2010
The changing dynamics of the global economy over the last 20 years,
and the impact of the economic rise of large developing countries, such
as China and Brazil highlights the strengthening of “south-south” links –
the increasing interactions between developing countries through trade
and foreign direct investment.
In 2009 China became the leading trade partner of Brazil. As of 2008,
developing countries were holding USD 4.2 trillion in foreign currency
reserves, more than one and a half times the amount held by rich
countries. These are just a few examples of a 20-year structural
transformation of the global economy in which the world’s economic
centre of gravity has moved towards the east and south, from OECD
members to emerging economies, a phenomenonal “shifting wealth”.
Perspectives on Global Development shows how developing countries
have become important economic actors and demonstrates the dynamism
of the new South-South economic ties. Although the process has been
ongoing for 20 years, the opportunities and risks for poor countries
posed by shifting wealth are only starting to be understood.
 The increasing importance of the South to the South
• The direct channels of interaction between the emerging giants – such as trade,
foreign direct investment (FDI) – have been intensifying. This trend is likely to
continue. Between 1990 and 2008 world trade expanded almost four-fold, but
South-South trade multiplied more than ten times. Developing countries now
account for around 37% of global trade, with South-South flows making up about
half of that total.
• This trade could be one of the main engines of growth over the coming decade,
especially if the right policies are pursued. The OECD suggest that, were southern
countries to reduce their tariffs on southern trade to the levels applied between
northern countries, they would secure a welfare gain of USD 59 billion. This is
worth almost twice as much as a similar reduction in tariffs on their trade with the
north.
• South-South FDI has also increased. China is the largest developing country
outward investor with an investment stock estimated at more than USD 1 trillion.
However, the phenomenon is broader, with growing activity from many firms in
Brazil, India and South Africa, as well as new smaller outward investors from
countries like Chile and Malaysia. South-South investment has enormous untapped
potential for low-income countries. Southern multinationals, for example, are more
likely to invest in countries with a similar or lower level of development since they
often have technology and business practices tailored to developing country
markets.
Potential gains from South-South trade liberalisation
Billions of USD
 A win-win situation?
• Improvements in the range and quality of exports, greater
technological dynamism, better prospects for doing
business, a larger consumption base – all these factors can
create substantial welfare benefits for the whole world.

• That is not to deny the challenges. Environmental

sustainability, growing levels of inequality within countries
and increased competition are three significant issues raised
by shifting wealth. The birth pains of this new economic
world order have also been accompanied by enormous
global imbalances. These challenges have come to the
forefront during the economic crisis, but have been building
over the last two decades. Despite these challenges, this
report argues that the overall picture is a positive one for
development.
 Economic policies should:
• Development strategies to cacth the opportunities of shifting
world.
• promote South-South foreign direct investment, learning the
lessons from successful clusters and Export Processing
Zones and using investment links to achieve technological
upgrading through national innovation systems;
• ensure appropriate revenue management policies in
resource-rich economies and contemplate using sovereign
wealth funds to promote growth and investment in the
domestic economy;
• respond to the growing demand for agricultural exports to
improve agricultural productivity, through greater support
to R&D and extension services, and technological transfer.
 BAHIA INFRASTRUCTURE PROJECTS

Vetor de Expansão Oeste Ponte Salvador Itaparica

O Vetor de Expansão Oeste é
um programa de
Desenvolvimento Urbano com
forte impacto na mobilidade:

•Redução de distâncias
rodoviárias para BR- 242, BR-
116,BR-101, Baixo Sul,
Itacaré-Ilhéus

•Interligação rodoviária dos

Portos de Aratu / Porto de
Salvador / Novo Porto Sul

•Melhoria da mobilidade em
direção ao Litoral Norte por
diminuição da concentração
do vetor atual de crescimento
da RMS
 Ponte Salvador – Itaparica

Ponte Salvador – Itaparica

Ponte Salvador – Itaparica

SISTEMA PONTE SALVADOR-ITAPARICA / BR-116 / BR-101 / BR-242
 Intermodal Transport System

Railway, Port and Airport

 Intermodal Transport System
Port - Airport - Railway - Roads
 Incentives for direct investment (FDI)
Industrial Tax Incentives:

Market and supplier access are the main factors affecting investments
entry. Also the access to customers and suppliers of inputs are key
determinants of FDI inflows.

Our Governments spend large sums of money to entice foreign direct

investment (FDI), offering generous tax incentives. We believe that
foreign firms will generate positive externalities on domestic firms.

The State fiscal Programs: Desenvolve and Probahia support with tax
isention the atraction of foreign direct investment (FDI) .
 Free Tax Areas
ZPE Zonas de Processamento de Exportação
 World Cup 2014
The Brazilian Strategy

Fonte Nova

•The sense of urgency created by the advent of the World Cup in 2014 and the Olympics in 2016
can be very positive for Brazil as this stirs the public and private sectors to carry out badly
needed infrastructure investments.
Projeto Fonte Nova
 World Cup 2014 Stadium
• The project is under progress as Private Public Partnership
(PPP) to build and operate a new World Cup 2014 stadium.
• The stadium will feature seating for 50,000.
• Transportation, energy, sanitation, and other infrastructures
of the project will be developed to meet international
standards.
• Hosting of the World Football Cup in 2014 and the
Olympic games in 2016 will stimulate much response, the
construction of roads, airports, and stadiums.
 Why Invest in Bahia?
The choice of industrial leaders:

•Ford Motors Automotive Complex: U$ 1,9 Billion investment. Production

capacity for 250.000 vehicles / year.
•
•Paper and Pulp Industry : Investments of more than U$1,5 billion over the last
5 years

•Oil and Gas Industry: New oil discoveries raising Brazilian reserves from 14th
place to 4th place in the world.

• The World Bank predicts that if Brazil continues on the path it is on now, it
will move from being the tenth largest economy in the world today to the fifth
largest by 2016.

• The sense of urgency created by the advent of the World Cup in 2014 and the
Olympics in 2016 can be very positive for Brazil as this stirs the public and
private sectors to carry out badly needed infrastructure investments.
 Oil Industry Investments
•The oil giant Petrobras had total revenues of $92 Billion in
2008 and a total profit of $14B.
Brazil has 12.6 billion barrels of proven oil reserves, the
second-largest in South America after Venezuela.

•Petrobras has announced the world’s largest capital

expenditure programme, worth $220 billion over the next five
years.

The large discoveries of offshore oil made by Petrobrás have

made it ease to forget that Brazil is already the world´s largest
exporter of coffe, sugar, chickens, beef and orange juice. It
also exports vast amount of soya and iron ore, as well as other
ores and metals.
Logistic Multimodal Transport Plataform
Investiment: us $ 50 milions. TIR around 18%
 Juazeiro Logistic Plataform
• Juazeiro has a privileged geographical location in the center
of brazilian northeast, and the radial connection around
Juazeiro in addition to its network, facilitate the transport of
merchandise and favors the intermodal infrastructure.

• Nearby Petrolina has a good intermodal infrastructure and

facilities that connect with those of Juazeiro. Together, the
two interact synergistically to create a logistic platform.

• Platforma Logística do São Francisco is a PPPI project to

convert Juazeiro into the largest logistic platform in the
Brazilian Northeast.
Romeu Temporal
Secretaria de Planejamento

Governo do Estado da Bahia