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2014 Brazil FIFA World Cup and 2016 Rio Olympic Games

The Basics

In 2014 and 2016 respectively, Brazil will host the world’s 2 premier sporting events – the FIFA World Cup and the Olympics Games (in Rio de Janeiro). The 2014 World Cup will be conducted in 12 Brazilian cities.

Public works projects of some US$52 billion are planned in order to develop the necessary infrastructure (stadiums construction, transport system, roads & highways, airports, electric power network expansion, telecommunication networks, water & waste) in addition to contracts for the staging of the event. The 2016 Olympic Games in Rio de Janeiro will require extra investments of some US$11 billion for the same purposes.

Main organisations involved

Brazilian Olympic Committee (COB)

Founded in 1914, COB has the responsibility of spreading sports culture within the Brazilian society and helping developing high performance athletes.

Rio 2016 Organizing Committee

Rio 2016 Organizing Committee is made up of a team of professionals from diverse areas (former Olympic athletes, international advisors and renowned consultants) with expertise in the organization of major sports events. Key members of the Rio 2016 team also worked on Rio 2007 Pan American Games.

Rio Business Office

Identify, concentrate and coordinate business and investments opportunities related to the 2016 Olympic Games in the city of Rio de Janeiro is the main purpose of this project. The office will also support road shows and business missions to promote the city and its demands.

Brazilian Ministry of Sports

The Ministry of Sports is responsible to create a national sports policy, develop high performance athletes and work on activities to provide social inclusion through sports, therefore contributing to the welfare of the Brazilian population.

Brazilian Football Confederation (CBF)

The CBF coordinates everything that is related to professional soccer being responsible of the organization of the national championship under it’s varies leagues; players transfers and regulations; as well as managing, training and administrating the Brazilian national soccer team in all of its categories.

Procurement and timetable

Projects related to the 2014 Brazil FIFA World Cup are coordinated by each of the 12 host cities state & municipal governments. Federal government is also involved in major infrastructure areas that are already part of the national development plan (PAC). Investments to build and reform stadiums in the 12 host cities will be around US$5.7 billion; and projects should consider an entire revitalization of stadium’s surrounding area in order to leave a legacy to the city.

The national commercial air traffic should double until 2014 and US$3.3 billion will be invested in airport infrastructure and modernisation in the 12 host cities to attend the estimated demand. Large investments will also be made in hotel accommodation, ports infrastructure, tourism, training and security, since estimated number of tourists during the event is 500,000. All host cities will have to expand their hotel network to accommodate estimated number of visitors.

An estimation of US$11.5 billion will be invested per year in the next 5 years in telecommunications infrastructure (fixed line network expansion, broadband Internet and 3G mobile high-speed networks implementation).

The 2016 Rio Olympics project is coordinated by Federal, State and City governments as well as by the Brazilian Olympic Committee through the Rio 2016 Organizing Committee but most of the efforts and decision power will be concentrated at city government level. Major decisions on the projects and companies to participate will be made from April/May 2010 with the consolidation of the Rio Organizing Committee and the creation of the Rio Business Office which will concentrate all the investments opportunities related to the World Cup and Olympic Games as well as other development plans for the city and state.

Estimated annual impact in the Brazilian GPD is US$11 billion (2009 to 2016) and US$13.5 billion (2017 to 2027) and the planned investments should result in 121,000 new direct and indirect employees per year (2009 to 2016) and 131,000 per year (2017 to 2027). The sectors of the Brazilian economy that will best benefit from the games will be:

  • civil construction (10.5%)
  • real state & rental services (6.3%)
  • business services (5.7%)
  • oil & gas (5.1%)
  • telecommunication services (5%)
  • logistics (4.8%)

Tourism in the city of Rio de Janeiro should increase 15 per cent in 2016 in relation to the previous year and the city of Rio will have to extend its hotel accommodation capacity up to 50,000 hotel rooms. The strategic regeneration of Rio’s historic Port area will be accelerated, resulting in a major new accommodation, entertainment and tourist district reconnecting the harbour to the rest of the city.

The city will have 4 clusters with specific needs and solutions (Barra, Deodoro, Maracana and Copacabana) and 11 permanent and 4 temporary sport installations will be constructed plus modernisation of existing ones with estimated budget of US$508 million. A BRT (Bus Rapid Transport) system will be implemented in the city to connect the planned clusters as well as modernisation and extension of metro lines with a total estimated cost of US$2.6 billion.

The remediation of Rodrigo de Freitas & Barra Lagoons and Guanabara Bay are also a priority that has an estimated cost of US$565 million.

Latest news and updates on the procurement processes can be found at: www.brazil2014-rio2016.com and www.brazilgames.icn.org.au

Introducing Australian capability

Australia has proven sports event construction, staging and logistics of major sporting events, including the 2000 & 2008 Olympics, 2006 & 2010 Commonwealth Games and 2010 Asian Games, in a wide variety of sectors including master plan design, project management, ceremonies, infrastructure, design and construction, staging expertise, environment, facilities, and services.

The 2014 World Cup and 2016 Olympic Games events provide an opportunity to build relationships between Australia and Brazil at a number of levels because of our common sporting interest and the perceived expertise of Australia in both the management of the games and Australian Olympic sporting prowess.

Austrade is planning several activities (including trade missions; networking events; seminars) to engage Australian companies and Brazilian public and private entities. For more information on planned activities involving business opportunities related to major sport events please contact us.

Please also visit: Australian International Sporting Event Secretariat

Action

Register your interest with Austrade

Austrade are working closely with State Government sports industry specialists (including the Industry Capability Network and the Australian International Sporting Event Secretariat), in developing contacts with a wide range of Brazilian companies and organisations with a connection to the Olympics.

We are keen to promote specific Australian capability, and would be interested to receive profiles from relevant Australian suppliers since our aim is to present portfolios of specialist capability to clusters of related contacts.

To register your interest please access www.brazilgames.icn.org.au

Contact

Companies are welcome to contact Austrade direct at the following details:

Australia
David Jamieson
Senior Industry Adviser
Tel: +61 3 9648 3132
Fax: +61 3 9648 3100
Email: David.Jamieson@austrade.gov.au

Brazil
Fabio Nave
Business Development Manager
Tel: +55 11 2112 6212
Fax: +55 11 3171 2889
Email: fabio.nave@austrade.gov.au

Markets

For industries in bold, Austrade is able to offers a full suite of services

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2014 Brazil FIFA World Cup & 2016 Rio Olympic Games

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