Infrastructure in Brazil: falling 20 positions in logistics ranking
Brazil fell twenty positions in the world ranking logistics of the World Bank (Bird), which measures the efficiency of transport systems in 160 countries. The report, released recently, takes into account the perception of entrepreneurs in relation to the efficiency of the transportation infrastructure. Brazil occupied the 65th place in the ranking. This is the worst placement since the ranking was released in 2007.
Paulo Fleury, director general of the Institute of Logistics and Supply Chain (Ilos) defines the result as “disastrous” for the country. “The moment of truth has arrived: Brazil invested billions in infrastructure of transport which — by governance issues — have not been completed, and this is the result.”
In Fleury’s evaluation, the fact that the study did not measure progress or physical setbacks, but the perception of entrepreneurs, is symptomatic. Little has changed in the country’s infrastructure in recent years, but Brazil’s position in the ranking was changing. In 2007, when the survey was launched, Brazil ranked 61th place. In 2010, he was the best finish: 41 post. In 2012, dropped to 45th place. Since then, plunged to their worst placement.
Fleury attributes the oscillations to changes in schedules of works. “When the first survey was conducted, the PAC (Growth Acceleration Program) had just been released and the expectation of improvement pushed the indicator up for a while,” says Fleury. “As the works do not leave the paper, but the demand for transportation increases, strangling the system, the frustration only increased nor concessions last year managed to enhance the mood.”
According to Ilos, the average delay in the PAC is 48 months. There are also huge gap between the budgeted cost and the cost that we saw in practice. The average increase was 85%.
The World Bank also released rankings of countries on six specific items in logistics and transportation, used together to determine the overall rating. The segment that Brazil is better placed is in the “quality and logistics competence” (50th position) and the worst in “customs service and customs” (94th). In the “tracking and monitoring” is the 62nd and the “International Shipping” on the 81st.
Other Latin American countries are in much better position than Brazil, such as Chile (42nd, rated the best in the region), Mexico (50th) and Argentina (60th) positions.
The first three positions in the ranking are occupied by developed countries: Germany, the Netherlands and Belgium. Among the last ones in the ranking are Somalia, Afghanistan and the Democratic Republic of Congo. The World Bank recognizes that reforms in the sector are complex and improvement of transport requires heavy investments, which hinders the advancement in developing countries. For this reason, the high-income countries are the majority among those who occupy the top ten positions in the ranking, highlighted the institution in the material sent to the press.
The main conclusion is that the difference in logistics between countries with better transportation system and those with worse network is still very large, despite a slight improvement since the survey began in 2007.
The Bank assesses several factors to mount the overall ranking – quality of transport infrastructure, services and efficiency of the clearance process at customs, cargo tracking, meeting the deadlines of delivery and ease of finding freight with competitive prices. The institution heard about a thousand logistics professionals worldwide. Based on the interviews and the methodology, the World Bank developed the Logistics Performance Index (LPI), which is used to organize the ranking