In the first half of 2017, Brazil’s economy reached a turning point, exiting from the deepest recession in decades. The economy was supported by a record agricultural harvest and an uptick in consumption, as a result of lower inflationary pressures, decreasing borrowing costs and positive sentiments over the adopted government reforms. Based on these fundamentals, in October 2017, the IMF raised its growth estimates for Brazil’s economy from 0.3% to 0.75% in 2017, and from 1.3% to 1.5% in 2018. The institution defended the government drive towards fiscal sustainability, including the adopted public spending cap in December 2016 and the ongoing pension reform, as key measures for the recovery of confidence and private sector investment. Nevertheless, economic growth is projected to remain subdued in the medium term, at about 2% per year through 2022, mainly due to the recent rise in political instability that poses risks to the government’s reform agenda. New corruption investigations surrounding top government officials coupled with the upcoming general elections in October 2018, are rapidly closing the window for legislative action. Notably, reforms of the pension system, public healthcare, tax code, and infrastructure concessions regime are seen as essential to support macroeconomic stability, secure confidence and bring the economy back to its potential.

01 EXECUTIVE SUMMARY

Sector in Numbers

Sector Overview

Sector Snapshot

Driving Forces

Restraining Forces

02 SECTOR FORECAST

Macroeconomic Outlook

Economic Sentiment

Sector Outlook

Sector Concentration

03 SECTOR IN FOCUS

Main Economic Indicators

Main Sector Indicators

Global Positioning

Transportation Matrix

Infrastructure Investment

Foreign Direct Investment

Main Investment Projects

Employment

04 COMPETITIVE LANDSCAPE

Highlights

Road Concessions

Railway Operating Companies

Airport Operating Companies

Top M&A Deals

M&A Activity, 2016-2017

05 COMPANIES IN FOCUS

06 REGULATORY ENVIRONMENT

Government Policy

07 ROAD INFRASTRUCTURE

Highlights

Main Events

Road Infrastructure

Focus Point – Paved Federal Roads by Region

Roads under Concession

Quality of Road Infrastructure

08 RAILWAY INFRASTRUCTURE

Highlights

Main Events

Cargo Railway Infrastructure

Efficiency of Railway Cargo Transport

Urban Railway Infrastructure

09 AIRPORT INFRASTRUCTURE

Highlights

Main Events

Airport Infrastructure

Focus Point - Airport Infrastructure by Region

Airport Auctions

10 PORT AND WATERWAY

INFRASTRUCTURE

Highlights

Main Events

Focus Point – Ports by Region

Port Infrastructure

Auctions of Port Terminals

Inland Waterway Infrastructure