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Car Wash Witness | Contrary to Fact Conditional Parole?

"They knew everything"

“They knew everything”

I was leafing idly through the news coverage of Operation Car Wash — a megascandal with dozens of suspects of operating illegally inside Petrobras — thinking of doing a coverage timeline of the scandal,  when I came across a surprising statement.

TV Globo said that its sources did not confirm the version published by Veja, and described the Folha article as “distorted.”

It is very rare to see these particular establishment media outlets criticizing one another in this way.  Normally, stories like this are handled as a three-man tag-team match.

According to Valor, however, the naming of politicians involved in the case will not occur until February — Ash Wednesday, when people finally get back to work.

A tropical W$J or FT in incubation, Valor has published as a joint venture with O Globo and the Folha de S. Paulo — odd bedfellowssince May 2000. With the demise of the Gazeta Mercantil, it represents a relative concentration of the market shared with Brasil Econômico — a cousin to the Rio daily O Dia — and the business pages of the Estado de S. Paulo, along with the weekly Exame (Abril).

Bloomberg, Reuters. AFP, Yahoo News and others add a foreign flavor to the mix. The flow of information from various sources cannot but encourage the market observer.

Rumor and leakage in the Petrobras case do appear to have died down since mid-December as defendants — and officers of the court, including the federal police  — honor the gag order, in the case of defendants on pain of losing their plea deal, and leaky civil servants suffering administrative punishment.

Backgrounders [+]:

  1. Car Wash | Big Brother Is Watching
  2. Nassif on Car Wash | The Tipping Point?
  3. Watergate Braziliense: The Leaky Police on the Leaky Police

Source: CartaCapital (October 30, 2014):

Correction to Youssef deposition is a “lie,” attorney says.

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Deep Float | Petrobras Underwater, Fire

A napkin outline of the Pasadena scheme

A back of the napkin outline of the Pasadena scheme

Item.

There is curiosity today as to the identity of a “deep throat” witness in the Petrobras corruption megascandal.

One month after Operation Car Wash was carried out, in the middle of this year, a career public servant with 30 years of service approached federal agents in charge of the task force and denounced Petrobras for ignoring “signs of criminal behavior” and “intentional mismanagement” inside the state-run petroleum giant “in order to divert funds without awakening the suspicions of auditors and inspectors.”

Together with the acquisition of the Pasadena Refinery in the U.S. – the most emblematic of the charges involving the case — the witness named former Mines and Energy minister Edson Lobão as the “godfather” of one of the suspects and [alleged that] current Petrobras CEO Graça Foster was responsible for the nomination of two other senior executives in the foreign trade division, supposedly responsible for a sale of assets to Nigeria that had led to losses for the company.

charge-latuff-obama-petroleo_0-preview

Was it a note with awful grammar from some General Nigeriano Ubuntu offering you a handsome sum for laundering some huge amount of cash through your account?

This is the Nigerian Third World Corruption scam. Purge it from your e-mail client. A variant is the wealthy but oppressed damsel in distress, for those more responsive to an emotional stimulus, and might be called the Rwandan Woman in Fear for her Life gambit.

During a four-hour closed session held on April 28 in Rio de Janeiro, – the transcript was appended to the Car Wash case file on Tuesday — the «informant», whose name will not be released during continuing investigations, described six cases of alleged criminal misconduct, chief among them the acquisition of  Pasadena, initiated in 2005. The deal, valued at US$ 359 million at the outset, wound up cost US$ 1,2 bilhão, causing Petrobras to suffer a US$ 793 million, according to the federal accounting tribunal (TCU).

[ … translation to come …]

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Coverage | Rating Port Reports

Porto de Santos - Fotografias antigas

Via Observatório da Imprensa

By: Rolf Kuntz

Translate: C. Brayton

The Brazilian government is busy trying to stimulate the modernization of and competition among the ports, the stated goals of Provisional Measure 595, approved by a final vote in Congress on May 16.

Brazilian ports are among the best in the world at processing iron ore but occupy 35th place in the handling of containers, according to a study executed by FIRJAN and reproduced in the May 19 edition of O Globo.

To stimulate competition, however, it will be necesary to multiply access routes to various terminals, the Estado de S. Paulo warned in an article published the same day.

The contrast between coverage by the Folha and O Globo is striking: the Folha refers insistently to the current “chaos” as O Globo looks forward to an advance in the rankings, as follows.

Brazilian ports are experiencing a paradox. In port terminals for the export of iron, Brazil leads the world rankings in first, second and fifth place. Among ports that handle containers, it falls to 35th place, bringing up the rear in a study released by FIRJAN, the Rio de Janeiro industrial federation. Investments in increased capacity, modernization of equipment and improvements in electronic cargo handling could elevate Brazil to 17th place within three years. This leap, according to experts, could be favored by the MP dos Portos, approved last week in Congress.

Returning to the Estado analysis and its prognosis of “chaos”:

“The lack of alternative routes ends up overloading the southern and southeastern coastal ports, while other ports are practically idle.  In the area of grains, nearly two-thirds of production for export leaves the country through Santos (SP) and Paranaguá (PR). The rest is divided among 16 terminals scattered along the coast,” the article said.

With these articles, the two newspapers enriched the reader’s understanding one of the hottest and complex issues of the week, the vote on the Provisional Measure of the Ports. The major news organizations made a mighty effort over the course of that week to follow the voting in the two houses of Congress. Moreover, they took the trouble to explain the issue in detail and demonstrate to readers how important it was.

Hard Work

There were long, hard negotiations in the lower house. The government had failed to mobilize its congressional base of support. For this reason, a last-minute push was needed to obtain votes for the measure without agreeing to disastrous amendments.  MP 595 was to lose its validity at midnight on May 16.

An MP is a bill sent down by the executive to be voted by the Congress, with a time constraint. The mechanism is often criticized as an incursion of executive power into the powers of Congress.

With some of its main allies working against the bill, the government had to make concessions and promise resources for projects financed by budget amendments.

According to journalistic accounts, the Treasury is to release R$ 1 billion, and more political appointments are to be made. Debates in Câmara went on well into the night and the decisive session lasted 22 hours. Lawmakers were photographed sleeping on the floor of Congress, but sleep is a luxury reporters do not enjoy.

Observing this marathon was only part of the mission. Day by day it was necessary to explain the principal changes proposed, their consequences, and the probable reaction of the government.  It may be argued whether the effort was consistently successful, but the performance of the media was undeniable. It would be very difficult to obtain, in these conditions, a better result.  On May 17, the major dailies were still fixated on final approval of the bill, obtained quickly and with surprising facility by the Senate. The effort to translate the details of the text for the lay reader and to indicate the likely presidential vetos continued on Saturday.

Complex Agenda

On Sundary, the newspapers made space on the front page again for the topic.  “Brazil may advance in global ranking,” informed O Globo, with a jump head for an article on the classification and future of the ports. “New ports will require new roads and railroads,”, was the top headline of the Estadão. In a more discrete reference to the story, at the foot of the front page, the Folha de S. Paulo registered the statement: “‘I am not an evil genius’, said Eduardo Cunha, an opponent of the MP dos Portos”. Cunha leads the PMDB in the lower house of congress, the part of vice-president Michel Temer and the government’s most powerful ally. Its resistance was the principal obstacle to the approval of the measure.

Given the prospect that certain articles may be vetoed, there is much new material that will have to be explored and explained in subsequent editions. To date, the MP dos Portos is the most complete and best-organized governmental initiative to increase efficiency and competitiveness of the Brazilian economy.  But it is merely one part of a much broader agenda, as exemplified by the Estado’s story on the condition of access roads connecting to the terminals.

Logistics | Any Port in a Paperless Storm

Brazilian port authorities. Source:

Brazilian port authorities. Source: Secretaria dos Portos

Source: Folha de S.Paulo, which tends to lead its Mercado section with stories highlighting lack of progress toward goals defined by the current federal administration, with talking heads provided by industry lobbying groups.

This approach can be thought of as a subgenre of the «chaos» meme — «chaos in the skies», «chaos on the streets», chaos, chaos, everywhere.

The captain of a ship flying foreign colors, arriving in Brazil, is obliged to supply 190 pieces of information to Brazilian authorities. At times, the same information must be submitted in different documents to the tax authority, the Navy, the public health autority and the federal police.

Brazilian ports operate in chaotic conditions

In order to depart Brazil, the situation is the same: Of the 13 days a container takes to reach its destination, six are spent on paperwork at the port, according to the World Bank.  Clearing Singapore, which leads the world in this ranking, takes one day, while in the United States it takes two.

This is one reason why the price of exporting a container from Brazil is more than double the amount charged in Europe: US$ 2,215 in Brazil and US$ 1,028 in Europe.

Despite the logistical chaos of entering and exiting Brazilian ports, bureaucracy remains the main problem, according to a survey of users conducted by ILOS, the Institute of Logistics and Supply Chain.

None of the problems, however, were addressed by the recent Provisional Measure of the Ports, a bill approved after a political battle in the National Congress. Continue reading

Odebrecht | Risks and Riches

Maracanã undergoes reconstruction

Maracanã undergoes reconstruction

2013 has so far been a time of trials for the Brazillionaire, a caste that has benefited significantly in recent years from the Lula government’s ambition to breed and incubate Brazilian multinationals with acquisitive power — think of JBS-Friboi’s takeover of the venerable Swift & Co.

The most visible sign of decline has been the performance of companies in the Eike Batista group, whose OGX petroleum subsidiary leads losses recently in the BM&FBovespa and is reportedly seeking outside and foreign investment.

Via Brasil 24/7.

With close ties to PT, Odebrecht carries $R 62 billion in debt

The Odebrecht group, which operates in the petrochemical and biofuels markets, produces nuclear submarines, participates in the management of the Maracanã football stadium and is one of the companies benefiting most from the amended Port Law, has run up debts equivalent to 3.5 times its net assets of R$ 17 billion.

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Deals on Wheels | The Railway Pipeline

estacao-luz-antiga

Source: Portal ClippingMP.
Authorship: Guilherme Soares Dias | Valor Economico

I have recently received an incentive to closely and constantly keep an on the Brazilian transportation sector as a whole — not just what the ALLs and LLXs are up to.

Intercity passenger trains are being readied to circulate again in at least nine Brazilian states with plans under active study. In most of these cases, the intention is to reuse existing freight lines for medium-velocity passenger service. The plans provide for management by private sector concessionaires and ticket prices competitive with intercity buses, in a attempt to take some of the strain off crowded highways.

Brazilian roadways — constantly subject to apocalyptic weather conditions, let it be said — are a nerve-wracking way to get around, although mirabile dictu the rodoviários — bus stations — hum industriously all year long, and especially around Christman, when Northeastern families make the trek to be temporarily reunited.

In all, 1,900 km of so-called “regional trains” will get off the drawing board sometime this year. The federal ministry of transport has detailed plans for six stretches of railway, while SUDECO — the Superintendency of  Center-West Development examines two rail lines in the Brasília region. The state of Minas Gerais is studying three new lines and São Paulo is planning another five.

After a study by BNDES, the national development bank, issued a list of  64 railway lines that could be used to move passengers, the transport ministry chose 14  priority project for evaluation in 2011. Two years later, six of these are underway under the auspices of BNDES and one another, under construction by the state of Minas Gerais, should be ready by the the end 2Q13.

After the studies are conducted, the proposals will be opened up to public discusion, after which the transport ministry intends to assess tender offers for projects starting in 2014. Bids closest to completion so far include the Londrina-Maringá connection, in  Paraná, and the Bento Gonçalves-Caxias do Sul connection, in Rio Grande do Sul, where feasibility studies have been conducted and public audiences will begin next month in which residents and local governments will have their say.

According to Euler Costa Sampaio, coordinator of studies on regional and passenger rail in the transportation ministry, the rail lines will likely operate on the basis of a Public-Private Partnership or a concession model. “We want to take advantage of the new rules for the railway sector, which instituted right of way [for passenger trains] on freight train lines,” he said..

Along certain stretches, such as the connection  Londrina-Maringá, the plan is to create a double-track road, given the heavy cargo loads resulting from the line’s proximity to the Porto of Paranaguá. Studies will show that demand will be sufficient for an all-passenger service, says Sampaio. Estimated demands runs around 36,000 passengers a day and 13 million passengers a year.

Another challenge for the regional lines will be entering urban zones, in places where they might cross paths with municipal transport. “We will have to provide quality and accessibility in order to compete with the interstate bus lines. Fairs will have to be in line with what it costs to travel by bus”, a Transportes official said.

In some cases, such as the Salvador-Alagoinhas connection in Bahia, whose study will be filed in June, indications are that the rail line can be extended another 40 km to Feira de Santana. With its  568,000 inhabitants, the city is the second most populous of Bahia state and is connected to Salvador by Highway BR-324, which sufferes from intense passenger and cargo traffic.

Another stretch of track featured in the  Sampaio reporte is the São Luís-Itapecuru-Mirim triangle, in the northern state of Maranhão, where the largest petrochemical center in the Northeast is under construction.

In addition to the six rail linkages already under study, the transport ministry expects to contract studies for another six: São Cristóvão—Laranjeiras (SE), Recife—Caruaru (PE), Campos—Macaé (RJ), Itajaí— Rio do Sul (SC), Campinas—Araraquara (SP), Santa Cruz—Mangaratiba (RJ), and Bocaiúva—Janaúva (MG).

Os projetos preveem que os trens atinjam de 80 a 140 quilômetros por hora para encurtar, em alguns casos, o tempo de percurso atual. É o caso do trecho entre Brasília e Goiânia que teria viagens de 50 minutos, enquanto as de carro e ônibus duram de duas a três horas. O trecho é estudado pela Sudeco. A linha seria de uso misto, sendo aproveitada para transporte de cargas, com ligação da Ferrovia Norte-Sul em Anápolis (GO), onde está prevista uma parada.

O diretor-superintendente da Sudeco, Marcelo Dourado, ressalta que 6 milhões de pessoas moram no entorno da futura linha e devem ser beneficiadas pelo novo modal de transporte. Ele destaca ainda que haverá melhora no escoamento de produção do agronegócio. A região concentra o segundo Produto Interno Bruto (PIB) meso-regional só perdendo para Rio-São Paulo.

“Essa ligação mais rápida vai incentivar a industrialização e a conurbação da região”, acredita Dourado. Os estudos estão sendo concluídos e a intenção do órgão é que a licitação ocorra até o fim do ano, as obras comecem em 2014 e sejam concluídas em até sete anos. O custo estimado é de R$ 1 bilhão. A Sudeco estuda ainda a ligação entre Brasília-Luiziânia (GO), onde já existe linha férrea e seria necessária adaptação para o trem de passageiros. “Essa seria uma intervenção mais rápida e barata. Seriam necessários dez meses e R$ 90 milhões de desembolsos para viabilizar a linha”, afirma Dourado. O trecho seria atendido por um Veículo Leve sobre Trilho (VLT). De acordo com o superintendente da Sudeco, os dois projetos têm chegada prevista na rodoferroviária da capital federal e devem desafogar as rodovias do Distrito Federal.

O governo federal prevê ainda estudos de um trem ligando as cidades do Triângulo Mineiro e outro mais ousado, da Superintendência do Desenvolvimento do Nordeste (Sudene), que planeja o “Trem da Costa Dourada”, linha de 2 mil quilômetros ligando Salvador ao Delta do Parnaíba (PI) pelo litoral, passando pela maioria das capitais do Nordeste. Apesar do apelo turístico do projeto até mesmo os estudos encontram dificuldade para sair do papel. “O Ministério do Turismo tinha se comprometido a bancar, mas ainda não conseguimos a liberação da verba. Agora estamos negociando com o governo espanhol para financiar os estudos”, diz o superintendente da Sudene, Luiz Gonzaga Paes Landim. Ele garante que o trem é viável e afirma que o projeto poderia ser “fatiado”, com início nos trechos de maior apelo turístico como Salvador -Praia do Forte (BA), Recife-Porto de Galinhas (PE), Natal-Praia da Pipa (RN) e Fortaleza-Canoa Quebrada (CE).

Para o coordenador de transporte de passageiros do Laboratório de Transportes e Logística (LabTrans/UFSC), Rodolfo Philippi, os projetos atuais estudados pelo Ministério dos Transportes terão viabilidade reforçada pelo transporte urbano, uma vez que o aproveitamento de linhas já existentes vai possibilitar estações no centro das cidades. “Em locais maiores como Londrina, Maringá e Caxias do Sul poderá haver mais de uma estação incentivando o locomoção das pessoas dentro das cidades”, diz.

Já o presidente da Associação Brasileira da Indústria Ferroviária (Abifer), Vicente Abate, recorda que nas décadas de 60 e 70 os trens de passageiros chegaram a transportar 100 milhões de passageiros por ano. “Com o desinvestimento do governo na rede, os trens de passageiros foram perdendo competitividade e começaram a ser desativados e foram substituídos pelo transporte de rodovias. Agora devemos ter novo momento de retomada do setor”, considera.

Hoje, apenas duas linhas férreas recebem transporte de passageiros no país: a Estrada de Ferro Carajás, entre São Luís-Carajás (PA), e a Estrada de Ferro Vitória-Minas entre Vitória e Belo Horizonte. Ambas são mantidas em projetos sociais da Vale e movimentam juntas 1,5 milhão de passageiros por ano.

Good fodder for a private Wiki on the subject.

The Ruralist | Potemkin Villager or Hero of Soviet Labor?

chemicalsfriendsofagric

«Chemicals are the true friends of agriculture! They will provide us with centuries of grain!» —Soviet propaganda poster, 1965

I read it in the Folha de S.Paulo and used it to practice the WordFast online and Java editions.

I am surprised not to read more about this issue in the mainstream press. Carnaval is something of a sacred cow, obviously, despite worrisome ties to the underworld.

Columnist, lobbyist and federal Senator — all at once! — Kátia Abreu explains the importance of Vila Isabel’s victory in this year’s Carnaval parades in Rio.

Who is Kátia?

Kátia Abreu is a federal senator (PSD-TO) and leader of the rural benches of the Brazilian congress. She serves as president of the lobbying group CNA, the Confederação da Agricultura e Pecuária do Brasil. She writes a weekly column in the Saturday edition of the  ‘Market’ section.

Recalling the backgroundContinue reading