Brazil port authorities’ failure to spend

In Brazil, while the private sector is increasing the pace of its investment in the port sector, port authorities continue to struggle to commit cash to the upgrades needed in the country's main ports.

The National Confederation of Industry (CNI) reports that the port authorities spent only 28.6% of their budgets in 2000-2014, collectively investing $926m. However, 2000 alone accounted for half of their total spend for that period, with much lower spends in subsequent years.

According to CNI, the level of investment in the last few years has been insufficient to keep up with the expansion of overseas trade.

The organisation's executive director, Wagner Cardoso, said the larger public ports operate at a low level of efficiency in terms of administration, while at the same time they are burdened with high levels of labour liability.

He said he was also extremely concerned by continual political interference in port authorities, something which might be avoided if they were privatised.

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