German companies make large investments in Brazilian logistics

2023-05-26 13:13:31

Brazilian logistics has been receiving a series of investments aimed at protecting the sector and promoting the country’s economic growth. These investments aim to modernize the infrastructure, improve operational efficiency and increase cargo transport capacity, bringing benefits to the Brazilian economy.

Logistics plays a strategic role in the economic development of Brazil, providing an efficient, safe and sustainable means of transport for the flow of products. The modernization and expansion of the infrastructure contributed to the reduction of logistical costs, the increase in the competitiveness of Brazilian companies and the creation of jobs. As a result, companies in the sector from other countries have seen Brazil as a source of investment opportunities.

According to sources from the Ministry of Infrastructuresince 2019, 79 infrastructure assets have been auctioned to the private sector, ensuring more than BRL 89.6 billion in private investments for airports, railways, ports and highways in the country.

One of the most notable partnerships is between the German company Siemens and Rumo Logística, one of the main logistics operators in Brazil. Last year, Siemens announced an investment of 1.5 billion reais in the modernization of Rumo’s network. This investment includes the adoption of advanced technologies to improve the efficiency and safety of operated operations. Siemens expects that this modernization will significantly increase transport capacity and reduce logistical costs, benefiting both the company and the Brazilian economy.

Another German company that is betting on the Brazilian railway sector is Deutsche Bahn, one of the largest transport and logistics operators in the world. In 2019, Deutsche Bahn acquired an equity stake in América Latina Logística (ALL), one of Brazil’s leading consolidated logistics companies. According to the company itself, this strategic partnership aims to improve infrastructure and optimize cargo transport services in the country. Deutsche Bahn brings with it its vast experience and know-how in efficient and environmental operations.

For louis fields, a specialist in the Brazil-Germany trade market, these investments in Brazilian logistics are a clear demonstration of foreign interest in Brazil’s potential as a growth market. According to him, “the vast territorial extension of the country and the need for an efficient transport infrastructure offer promising opportunities for international companies. Germany is very interested in investing in Brazil, as it sees an opportunity for business expansion and lasting partnerships in the country”.

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