This week: Brazil’s bold, new infrastructure plan. And how a weak currency is worse than the pandemic for companies’ profits.
Over the weekend, some of our subscribers received a duplicate version of our March 30 Daily Briefing. We are currently running tests on a new system to distribute our newsletters, and resending that particular mail was a mistake. We apologize.
Brazil’s new infrastructure plan
The Brazilian government unveiled the National Logistics Plan 2035 last week, seeking to shift the paradigm of cargo transportation in the country and reduce its complete dependence on truckers. The document will be available for public consultation and receive submissions from interested parties for the next 30 days.
- Instead of identifying overburdened transportation axes and suggesting investment to increase their capacity, this new infrastructure plan proposes the creation of new axes in order to increase the option for transporters. Waterways and railways take center stage as cheaper and more efficient alternatives.
Why it matters. Currently, 65 percent of cargo in Brazil is transported by road. In an ideal system, trucks should not account for more than one-third of cargo transport.
- That reality not only leaves the country at the mercy of truckers’ unions — as...