MercoPress. South Atlantic News Agency

Ports and railways privatization in Brazil.

Brazilian agro-business represents 33% of the country's exports which this year is estimated to reach 90 billion US dollars but is lacking in infrastructure, according to Brazilian Agriculture, Livestock and Supplies Minister Roberto Rodriguez.

Before leaving for a several Far East country business visit Mr. Rodríguez said that Brazil has "a spectacular expansion horizon which must be consolidated with international agreements that help open markets as well as massive investments in infrastructure".

"Brazil lacks the necessary funds for great projects such as railways and ports that are essential for collecting and shipping crops. We are therefore sponsoring legislation that will open those areas to private investment".

Mr. Rodriguez said this was a valid mechanism to attract foreign investments in areas which so far are limited to the government, "but we don't have the sufficient funds".

Another bottleneck for Brazilian agriculture is the highways and roads system "that is also being addressed by the government", revealed the Agriculture minister.

"Together with Transport Minister Alfredo Nascimento we've drawn a map with the country's road system, showing the main highways, tonnage and frequency they must endure. This has helped us build a priority agenda and we are now drafting bidding contract conditions".

A total of 7,000 kilometers of highways and roads have been selected for repairing and maintenance work "on time for April when most crops are harvested".

Finally Mr. Rodriguez revealed that the government will be sponsoring a program for building silos and storage capacity in farms.

"Our national storage capacity can sustain 90 million tons, but only 6% is in the farms. This compares unfavorably with the US which has 40% and Argentina 25%. Our target is 15% in the next twelve months ensuring farmers better conditions to sell their crops".