June 27, 2011 08:08 ET

Brazil to Launch Bidding Process on 20 Billion Dollar High-Speed Rail Project

ROCKVILLE, MD--(Marketwire - Jun 27, 2011) - has announced the addition of the new report "Global Transport Industry Outlook Survey 2011-2012: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies," to their collection of Railroads market reports. For more information, visit

The steps taken by transport industry respondents to contain costs and re-evaluate strategies to overcome business threats, an increase in passenger and cargo demand, the expansion of railroad infrastructure and the channeling of marketing efforts have contributed to the gradual erosion of economic uncertainty. This has led to the transport industry being much more optimistic about revenue growth for their company in comparison to the past 12 months as expressed by 57% of respondents.

Levels of consolidation are expected to increase over the next 12 months expressed by executives from transport buyer companies (reference Figure 11 below). Potential factors for the increase could be a result of the need to manage new cost or demand pressures, increase market shares, develop new products, repay debt or adhere to new compliance procedures. As global markets begin to recover, infrastructure activity and demand for services is expected to substantially increase in 2011. This will lead to larger companies acquiring small, local companies with strong business models and growth opportunities to integrate their services.

China has been identified as the most important region for growth among emerging markets. China has strong market potential, sufficient labor resources, expansion of its railroad infrastructure and sound corporate governance; therefore it is expected to grow rapidly in 2011. China plans to extend its rail network from 8,350 km to 13,000 km by the end of 2012. India, Brazil and the Middle East are also regions which are expected to show strong growth rates in 2011. India plans to expand its rail network during 2011-2012 for modernization activity. Brazil will host the 2014 FIFA World Cup and the 2016 Olympic Games, and they are expected to launch a bidding process for high speed rail projects with an investment outlay of US$20 billion. Furthermore the Middle East region has investment plans for the development of road infrastructure.

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