Doing Business with Latin Americ Brazil, Mexico, Chile and other excit
SMEs might find it daunting to start researching opportunities. There are so many, but where are they? I speak to Philip Gray, MD of Commercial Doctor Ltd, specialising in helping UK SMEs make the most of emerging business opportunities in Brazil.
2014 World Cup The 2014 World Cup will take place in 12 host cities across Brazil: Belo Horizonte, Brasília, Cuiabá, Curitiba, Fortaleza, Manaus, Natal, Porto Alegre, Recife, Rio de Janeiro, Salvador and São Paulo.
Each of the host cities is either building a new stadium or refurbishing an existing one, in accordance with the technical standards required by FIFA. These major projects require a wide range of products and services, from
construction materials through to specialist technologies and expertise.
Several of these work-streams provide openings for international companies. One example is the stadium roofing which is currently being installed at several of the venues, including Brasília’s Mané Garrincha stadium, Recife’s Arena Pernambuco and Rio’s iconic Maracanã Stadium. These are complex and highly- priced elements of the overall project packages and typically involve several international contractors.
In addition to the host cities’ stadia, a number of training camp venues will be required. Brazil’s Local Organising Committee for the 2014 World Cup has issued a preliminary catalogue of 54 approved training centres and many more potential venues are seeking to be included on the list. These venues must also meet stringent criteria in order to gain approval, leading to the potential for international contractors to become involved.
Each of the host city stadium and training camp projects are under the management of a local government organising committee. Each city has agreed an overall programme package (Matriz de Responsabilidades), covering its obligation to provide the stadium, together with supporting infrastructure projects including road and airport improvements which are necessary to transport visiting fans to and from the venue.
The primary (tier-1) contracts regarding the 2014 World Cup are let by each host city government. These tier-1 contracts are usually won by major Brazilian companies, either individually or operating as consortia.
54 entrepreneurcountry
Companies including Odebrecht, Andrade Gutierrez and OAS have all won major projects associated with the 2014 World Cup. The Tier-1 contractors then sub- contract individual work packages within the overall project. This is where the majority of opportunities for international suppliers can arise.
As the project moves through its life cycle, opportunities are developing in the areas of overlay and fit-out, plus games-time requirements. These cover a wide range of products and services including lighting, signage, field- of-play equipment, event management, hospitality, ticketing, security, transport, merchandising and many more. Some areas such as ticketing and merchandising are under the control of FIFA and its appointed tier-1 contractors, which act as the point of reference for any potential suppliers for these requirements.
Following the 2014 World Cup, opportunities will arise in the legacy development of the host city venues. Several potential legacy operators have reportedly already taken part in discussions, including AEG in relation to Brasília’s Mané Garrincha stadium. Brazilian billionaire Eike Batista is currently the sole bidder for the long-term contract to operate Rio’s iconic Maracanã Stadium. Ongoing stadium developments and venue operations are likely to generate opportunities which UK companies will be in a good position to take advantage of.
Rio 2016 Olympics and Paralympics The Rio 2016 events will take place in four venue clusters around the city. As with the 2014 World Cup project, Rio 2016 is proceeding through a defined life cycle comprising: construction, overlay and fit-out, games-time and legacy. Each of these life cycle phases creates opportunities for UK companies to engage.
One of the key projects to be awarded to date was won by UK company AECOM. The project is to produce the master-plan for the Rio 2016 Olympic Park. Construction work has already started on the park, which covers an area of 1,180,000 square meters. The construction work is being managed by the consortium Rio Mais, comprising Odebrecht, Andrade Gutierrez and Carvalho Hosken.
Rio is also undertaking a major development programme covering the city’s port area. The Porto Maravilha project (
portomaravilha.com.br) is the largest public-private partnership in Brazil and will redevelop and revitalise the city’s port area in time for
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58