BRAZIL Trends and Developments Contributed by: Maria Augusta Rost, Ricardo Barretto and Cleso Fonseca, Fenelon Barretto Rost
rect intervention, with an emphasis on regulation and oversight. During the same period, there has been a continuous expansion of infrastructure investments across various sectors, with private investors playing an increasingly significant role. This modernisation process can be observed in various sectors. • Aviation – Revision of the state interven - tion model in the operation of airline routes, featuring the adoption of a regime of fare liberalisation and allowing companies to determine routes and frequencies. With regard to airports, there has been a profound transformation from a state monopoly model to a competitive system with multiple private operators. Following seven rounds of conces - sions, among the 180 airports that operate regular flights in Brazil, 59 are now operated by private companies under concession, accounting for approximately 89% of domes - tic passenger traffic and 98% of total air cargo transportation. • Roads – Evolution of the sector towards greater private investment participation. Cur - rently, there are approximately 14,000 km of roads under private management through concession contracts, with prospects for new concessions in the future. • Ports – In 1993, the first law of the sector was enacted. That law was reviewed in 2013 and regulated in order to reduce the regulatory asymmetry among the sector’s stakeholders, who operate public and private terminals, subject to different legal regimes. Currently, a bill is pending in the Parliament that aims to further modernise and strengthen the Brazil - ian port industry. In 2024, the national port sector experienced a growth of 7.42%, reach - ing a record volume of 437.73 million tons. The decarbonisation of ports and the expan -
sion of concessions along with new strategic investments are on the sector’s agenda. • Railways – The new legal framework for rail - ways, established with the approval of Law 14,273/2021, aims to renew and expand Bra - zil’s railway system. The law introduces a new model of partnership with the private sector by allowing for private operation through authorisations. • Telecommunications – In the 1990s, the exclusive concession for operating telecom - munications services by state-controlled companies was eliminated. As a result, the state shifted from serving as a provider to assuming the role of regulator for telecommu - nications services. ANATEL was established by Law 9,472/1997. Since then, telecommuni - cations in Brazil have experienced significant growth, with increased digitalisation and con - nectivity. Currently, there are approximately 250 million mobile connections, 20,000 broadband companies authorised to oper - ate, and 91.5% of Brazilian households have broadband access. • Energy – There has been an exponential increase in investments in renewable electrici - ty generation. The legal framework for Distrib - uted Generation in Brazil now allows consum - ers to produce their own energy. Additionally, there is a growing role for consumers through the gradual liberalisation of the free energy market, overseen by the Electric Energy Com - mercialisation Chamber (CCEE). New regula - tory initiatives have begun regarding Open Energy, which aims to provide consumers with greater flexibility in choosing their elec - tricity suppliers and services, as well as the regulation of energy storage systems. Moreo - ver, discussions are underway on renewing distribution and transmission concessions, revising energy tariffs and enhancing con - sumer satisfaction.
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