Brazil’s deficient urban public transport infrastructure is holding back its economic potential. Wasted time and fuel consumed in traffic congestion cost the economy of São Paulo nearly US$20bn in 2008, about 10% of its GDP, according to some estimates.
Preparations for the FIFA 2014 football World Cup and 2016 Summer Olympics include ambitious investments in urban transport infrastructure but many of the planned projects are behind schedule. Even so, through Private-Public Partnerships (PPPs), the private sector is providing much-needed resources and implementing new technologies such as driverless subways.
This Economist Intelligence Unit report, Making up for lost time, sponsored by Accenture, identifies several measures that can help Brazil meet the challenges of its public transport system. Priorities include
· Sharply increase investments in a multi-faceted approach. There is no single solution for urban transport problems. Multimodal systems, which encourage integration of transport modes, can reduce travel times and ensure more efficient use of the available infrastructure. For example, park and ride programmes are being implemented in São Paulo to help keep cars outside the city centre and increase intensity of use of subways and trains.
· Move to restrict car use. Problems of mobility will only escalate with increasing personal vehicle use: in São Paulo the average speed of cars during afternoon peak hours is now just 16 kph, 24% slower than in 2000. Governments must be willing to discuss measures such as congestion pricing, high parking costs in city centres and dedicated bus lanes.
· Introduce fast-track approval of environmentally sustainable projects and reduce bureaucratic barriers. Projects needed to prepare Brazil for the international sporting events were initially delayed by red tape—by April 2011, 30% of those projects had not yet been awarded. Possible solutions to the delays include encouraging expedited dispute resolution and priority in environmental permitting for less polluting projects.
Making up for lost time: public transport in Brazil’s metropolitan areas
is available free of charge at
http://www.businessresearch.eiu.com/making-lost-time.html
Press enquiries:
Joanne McKenna, Press Liaison, +44 20 7576 8188; joannemckenna@eiu.com
Katherine Dorr Abreu, Managing Editor, +1 212 554-0637 katherineabreu@eiu.com
About the Economist Intelligence Unit
The Economist Intelligence Unit (EIU) is the world's leading resource for economic and business research, forecasting and analysis. It provides accurate and impartial intelligence for companies, government agencies, financial institutions and academic organisations around the globe, inspiring business leaders to act with confidence since 1946. EIU products include its flagship Country Reports service, providing political and economic analysis for 195 countries, and a portfolio of subscription-based data and forecasting services. The company also undertakes bespoke research and analysis projects on individual markets and business sectors. More information is available at www.eiu.com or follow us on www.twitter.com/theeiu
The EIU is headquartered in London, UK, with offices in more than 40 cities and a network of some 650 country experts and analysts worldwide. It operates independently as the business-to-business arm of The Economist Group, the leading source of analysis on international business and world affairs.
About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with approximately 236,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended August 31, 2011. Its home page is www.accenture.com.
