Goiânia (Santa Genoveva) Airport work resumes on tripling capacity by 2020

Having got off to a false start amidst accusations of public money being filtered away from the intended destination, work resumed at Goiânia (Santa Genoveva) airport last Wednesday 18th September 2013 to conclude the first stage of the new passenger terminal.

The agreed date for completion is in March 2015 (18 months from now) and the work will cost R$246.2 million, around £69 million.

The governor of the state of Goiás, Marconi Perillo personally thanked Brazil’s president Dilma Rousseff for supporting the state’s petition to central government for funding to complete the works. The prefect of Goiânia (the city’s local government chief official) confirmed that the new airport will benefit the various sectors of the economy in the capital (Goiânia) and the entire state of Goiás.

The current capacity of the airport is 3.5 million passengers p.a.. This will increase in 2015 by 5.1 million to 8.6 million a huge increase of nearly 150%. The second stage (2020) will result in capacity increasing further to 10.6 million. The first stage of the new terminal will provide 34,100 sq m of space, dwarfing the present terminal which is 7,571 sq m.

The scene is being set for Goiânia to become increasingly easily connected with other parts of Brazil and, as a result, economic growth which may bring with it increased demand for real estate. There have been rumours over the years of international flights landing in Goiânia and time will tell.

To put it in context, Luton Airport in 2012 had a capacity of 10 million passengers p.a., although according to the FT, the new Spanish owners Aena plan to increase this to 18 million p.a..

Summary statistics (source: Infrero)

How Goiania airport will change over the next few years

How Goiania airport will change over the next few years

Brazil’s economists suprised by strong growth in Q2 2013

Brazil economy growth Q2 2013The Brazilian economy as a whole (PIB) increased by 2.8% over the year to the end of Q2 2013.  In the second quarter of this year alone, the growth was 1.5% which surprised economists who were expecting more like 1%.  This combined figure masks the disparity between the different sectors of “the economy of Brazil”;  the components are: agriculture 3.9%; industry 2.0% and services 0.8%.

The weakening of the Real, combined with an undiminished world appetite for food, has proven a real boon for the agricultural sector.  When the data comes out for the different regions of Brazil it is likely that the economy of the state of Goiás, and others where agriculture is a principal economic driver, will show stronger than average growth.

While the economy as a whole has grown, household consumption is reported to be weak and this has led to increased stock levels.

The expectation for Q3 2013 is for much weaker growth, of c. 0.5%, and the expectation for 2013 as a whole is for around 2.5% growth but that is looking conservative.