Good morning! Today, we discuss the government’s quest to find a privatization model for infrastructure. Rio’s crackdown on LGBT books offers a glimpse of looming cultural wars in Brazilian politics. Brazil’s country risk at a six-year low. How Brazilian markets performed. Also, what you should be looking out for this week—and the most important facts of the previous seven days. (This newsletter is for platinum and gold subscribers only. Become one now!)
Infrastructure: Brazil zeroes in on privatization model for ports
As the federal government begins to draft a model to privatize the country’s ports, a group of officials found a suitable model in Australia—which went from a totally deregulated system to one with more government input. Having public companies overseeing ports wasn’t an obvious decision, as the sector’s firms—currently owned by the state—have posted recurring losses since 1993.
Why it matters. Seaborne cargo transport is extremely underused in Brazil. The country has arguably the largest hydric potential in the world, with 12% of the world’s fresh water and a coastline of 9,000 km. And while seaborne transportation could generate savings of 80% per ton, when compared to road transport, Brazil remains highly dependent on trucks.
Benchmark. Officials who went...