Brazil looks to stage major road construction event

The upcoming Brazil Road Expo event is capitalising on the country’s strong growth in highway construction

Brazil’s construction machinery market foresees an average growth of 12.5% in 2013, according to a survey of equipment manufacturers and importers released at the end of 2012. The third edition of Brazil Road Expo, the main paving technology and road infrastructure event in the country, is being held from March 19th-21st at the Transamerica Expo Center, in São Paulo.

The event will gather some of the main players in the machine and equipment segment, such as Sotreq/178 Caterpillar, 1222 Terex, Grupo 2395 Wirtgen, Tracbel, Cibi, Maxter, LDA Tanques, 2684 Keller, 167 Benninghoven, Ticel, NAS Brasil, Emit, Rentamax, IMB, 206 Dynapac and Romanelli. Most construction machinery manufacturers and importers expect the sector to grow from 5-20% in 2013, or 12.5% on average. The 6447 Sobratema study of the Brazilian construction equipment market was published in November of last year. According to the survey, the sector should register average annual growth of 10.42% until 2017, with the growth rate until 2014 being even greater as a result of a resumption of PAC works and the possible projected tenders.

According to the entity, this positive expectation is greatly due to the various measures of economic stimulus performed by the Federal Government since mid-2012, including the concession programe for private enterprise in highways and other infrastructure projects.

“In 2013, we estimate growth of at least 10% over 2012 in sales of machines. Brazil is experiencing a moment of great need for investments in paving technology and road infrastructure and it is very important to have structured and focused events in the sector to discuss and define investment priorities,” said the manager of market development at Sotreq/Caterpillar, Chrystian Garcia. He added, “Brazil Road Expo is one of the segment’s main events and we are going to participate in this edition with our most complete line of paving machines.” He also said that Caterpillar have a seminar on paving techniques and another on compaction. 
“We expect to grow sales considerably in 2013. We believe we will have an interesting year for the sector because the Federal and the state Governments are projecting an increase in highway works this year since we are getting closer to the 1556 World Cup,” said the commercial director of 3956 Terex Roadbuilding, Luis Luvisário. “Finame’s low interest rates since the end of last year have already influenced significant growth in sales, which makes highway equipment manufacturers increase production.”

According to Jandrei Goldschmidt, marketing manager at 6241 Ciber Equipamentos Rodoviários (a Wirtgen Group company), the federal government’s National Logistics and Transportation Plan has generated many positives for the entire sector. He said Ciber intends to increase sales in Brazil by 26%, as well as expand business throughout Latin America, Australia, Africa and southeast Asia, views its participation in Brazil Road Expo as one of the strategic tools adopted to achieve these goals.

The rental market is another strong sector for Brazil Road Expo and projected growth in 2013 is the lease of machines and equipment. “Every segment has been undergoing a consolidation process. In this sense, the events that involve paving technology and highway infrastructure are of major importance. We are a country with an enormous shortage of roads and highways,” said Marco Aurélio da Cunha, president of the Brazilian Rental Association for Civil Construction (ALEC).

According to Cunha, the National Logistics and Transportation Plan (PNLT) represents the resumption of the planning process in the transportation sector. “Starting now, the transportation sector is equipped with a permanent management structure based on a georeferenced information system, containing the main data of interest for the sector, in terms of supply as well as demand,” he explained.

According to an estimate by Sobratema, of all the off highway equipment sold in Brazil, 30% is for the rental market, which 10 years ago only represented 15% of Brazil’s production of machines. According to ALEC data, there are approximately 3,050 rental firms in Brazil, and the segment moves R$ 3.5 billion/year.

Brazil Road Expo 2013 will highlight equipment, products and services related to the chain of paving technology and highway infrastructure, from project to maintenance, and including the construction and repair of roads and highways. The event is expected to gather 250 exhibitors and around 12,000 industry visitors.