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Partnerships between the public and private sectors revolutionize the management and quality of Brazilian highways.
In times of growing partnership between public and private sectors, the highway concession emerges as a strategic solution. With this model, the government passes the baton of highway management and maintenance to private companies for a set period.
Road Concessions Demystified In practice, the State is able to alleviate its expenses, as operational and maintenance costs are borne by the concessionaire. In return, this company sets toll rates, ensuring a return on investment. During this period, the government acts as an active observer, ensuring that the concessionaire meets the established standards and goals.
In Brazil, these partnerships emerged in 1998, driven by the need to improve the management and maintenance of highways. João Fornari, co-founder of Kartado, highlights: “With highway concession, we have seen significant improvements in safety, user service and the quality of the roads themselves.”
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The Results in Numbers The CNT (National Transport Confederation) highlights that, of the 25 best highways in Brazil, 22 are managed by concessionaires. This reinforces the positive impact of this strategy. “Concession contracts last, on average, 30 years, guaranteeing long-term investments and prolonged management of road assets”, comments João.
Benefits that run the country
- Improvement of Road Infrastructure: In addition to complying with contractual requirements, the concessionaire seeks to maximize its profitability by ensuring well-maintained highways.
- job creation: The concession process generates direct and indirect jobs, from technical to operational positions.
- Regional development: Well-maintained highways attract investment, boosting local commerce, industry and tourism.
- Freer Flow: Effective management includes strategies to minimize congestion, whether by expanding roads or implementing advanced technologies.
- Improving Road Safety: Ensuring well-maintained highways, with signage, lighting and emergency aid is essential.
- Impact on Logistics: Efficient and economical transportation of goods benefits both companies and consumers, making the logistics system robust.
At the end of the contract, all improvements implemented are returned to public assets. The great triumph of highway concession lies in promoting improvements in infrastructure with tangible benefits, without burdening state coffers.
About Kartado: Initiative by Pedro Henrique Fornari and colleagues, Kartado is a reference in technological solutions for infrastructure management. Since 2017, it has supported companies to optimize asset management, combining efficiency and savings.
Source: Daiane de Souza – Content Analyst.
