Annual and
Sustainability Report
2010
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CCR’s performance in the highway concessions sector is recognized both in Brazil and internationally. Besides being one of the five most representative groups in Latin America, it is the leader in net revenue among the 53 concessionaires operating in Brazil. And all of this from operating primarily in one of the most important segments for the development of Brazil.

Highway infrastructure

Traffic on the highways under concession rose by 6.8% last year, according to the Brazilian Association of Highway Concessionaires, Associação Brasileira de Concessionárias de Rodovias or ABCR, which resulted in revenues exceeding R$ 10 billion at toll gates.

According to the ABCR, 15,138 km of highways in nine Brazilian states are privately operated, representing only 7% of the national paved road network of 212,738 km. The sector therefore has enormous investment potential and is experiencing a movement of rapid expansion, both in the number of companies – from six, in 1996, to 52 at the end of 2010 – an in revenues and investments.

Given its size and its disorganized process of urbanization, Brazil still faces difficulties in equating its production capacity to the infrastructure of its urban centers, and is facing the challenge of improving the conditions for the logistics involved in conveying production. This is one of the main reasons for Brazil’s decline in the productivity ranking organized by the Swiss business school, the International Institute for Management Development (IMD). After rising from 49th to 38th place, the country slipped back to 44th position in the most recent evaluation in early 2011, among 59 participant countries.

Recent results are proof that concessions are an alternative for improving road conditions. A survey carried out by the National Transport Confederation (CNT) in 2010 showed that 87.3% of the highways under concession are in good or excellent condition, while the 67.6% of the network under public management is regular, bad or awful. The study carried out between May and June 2010 covered more than 90,000 km of Brazilian highways.

This result reflects the investment in maintenance, expansion and improvement undertaken using funds from tolls. Between 1996 and the end of 2010, Brazilian concessionaires invested over R$ 19 billion in highways responsible for carrying 60% of the wealth produced in the country, according to data from the National Association of Cargo Transportation and Logistics (NTC&Logística). In 2010 alone, the figure was R$ 3.5 billion.

With several highways managed, like the Bandeirantes (SP-348) and the Castello Branco (SP-280), receiving consecutive awards for the quality and safety they afford users, the CCR companies represent a significant part of this horizon of good expectations. Add to this the fact that its highway network is concentrated in the region with the greatest share of the national economy: worthy of note is the Via Dutra (BR-116), the main link between the capital cities of São Paulo and Rio de Janeiro, under the management of NovaDutra, and the Anhanguera-Bandeirantes system managed by CCR AutoBAn, which accounted for over 33% of the group’s gross operating revenue in 2010.

With the signing of the new amendments to contracts in Rio de Janeiro and São Paulo, the expansion of the federal and state concession programs and the prospect of higher traffic, and with the support of economic growth and the proximity of large international events in Brazil, like the World Cup in 2014 and the Olympic Games in 2016, the concessions segment is enjoying good prospects in the short and medium term scenario, and should continue to be the flagship activity of CCR.

Transport and mobility

CCR is addressing the mobility sector aware of its risks and bottlenecks but, more than anything else, with positive expectations. The idea is to get in tune with the current demands in Brazil in order to expand its range of business, winning over new users and clients while at the same time, offering shareholders and investors a more secure horizon in terms of the benefits of holding equity interests in the group.

Through ViaQuatro and the companies STP and Controlar, CCR is contributing and gearing up to increase the availability of mass transportation, traffic fluidity and organization, in addition to its contribution to controlling atmospheric emissions in large cities like São Paulo.

Prospects