São Paulo – The tide is high for business in Santos. The port city, which received thousands of immigrants, among them many Arabs, who prospered there, is growing at the rhythm of the new oil discoveries, especially in the pre-salt layer. It is also boosted by national and foreign investment and by the works for construction of the offices of the Business Unit for Exploration and Production in Santos Basin (UN-BS) by Petrobras.
Investment in infrastructure, which should exceed 5 billion reals (US$ 2.8 billion) by 2014, is already reflected in real estate appreciation and revitalized historic buildings. The improvement began in the port, the largest in Latin America, through expansion works to absorb the volume of cargo throughput, which should triple by 2024, according to figures disclosed by the São Paulo State Port Authority (Codesp), and reach the exploration fields in the pre-salt layer with full force, as is the case with Tupi field, 300 kilometres off the coast.
Petrobras, which established business units in Santos four years ago, already has great participation in the economy of the city and of the entire region. The state-owned company already answers to a substantial part of taxes earned by the city and also for a significant volume of the jobs generated. There are currently 900 employees operating in the city. After the announcement of the discoveries in the pre-salt layer, Santos was chosen to become the headquarters for company operations in the area.
According to figures disclosed by the company, the 25,000-square-metre piece of land where three towers will be built, in Valongo neighbourhood, cost 15 million reals (US$ 8.5 million). The first tower should be completed in two years and should generate 2,200 direct jobs. Together, the buildings should house 6,600 people.
As the new investment is announced, the city transforms itself with good perspectives in several sectors of the economy, like real estate, technology, trade and services. Old warehouses will soon be replaced by technology sector companies. The area, in fact, has become a priority for teaching institutions, which have established specific courses to train specialists in oil and gas.
Also in area surrounding the company’s offices, the future Pelé Museum should receive 20 million reals (US$ 11.3 million) and occupy the abandoned structure where the city hall used to be seated. Revitalization of the building is one of the bases of the Alegra Centro program, established seven years ago by the city hall and receiving 136.6 million reals (US$ 77.3 million). From then on, 297 works have already been developed on historic buildings, in partnership between the government and businesses. In the centre, modern restaurants contrast with a Scottish tram dating back to 1910 and with the rich architecture of the Coffee Bourse.
A quick trip around the city shows the several sites that are already undergoing works. Cement mixers and construction workers announce the arrival of new enterprises in several neighbourhoods. It is possible to see announcements for enterprises by large construction companies and real-estate developers like Helbor, Gafisa, Agre and Camargo Corrêa Desenvolvimento Imobiliário.
Ponta da Praia, where the ferry that heads to Guarujá may be taken, is where most works are in progress. There, the price of each square meter of land is around 4,000 reals (US$ 2,300). And the much awaited Santos-Guarujá Bridge should receive investment of 700 million reals (US$ 400 million) and eliminate the traffic on the ferry.
The new cruise ship dock in Santos Port, expected to receive the tourists of the 2014 World Cup, should cost 160 million. And in the case of the Cup, Santos plans to be a secondary host, receiving one of the national teams. The image of footballer Pelé may help attract more tourists to the city. Vila Belmiro stadium, the stage for the art and magic of Pelé, should be expanded and modernized to become another differential for the city.
Perimetral Avenue, which heads towards the port on both banks, should receive investment of 529 million reals (US$ 300 million). The dredging of the canal should receive investment of 346 million (US$ 200 million). Apart from that, over 2.9 billion reals (US$ 1.6 billion) is being turned to the construction of another four cargo terminals at the port, including Embraport, developed in partnership with DP World.
In the late 19th Century, the growth of Santos was connected to the close ties between production of coffee, the construction of the railway, the works for expansion of the port and the great growth in the population of the region, boosted by the demand for work in the port and railway. Now has come the time for oil to promote the development.
Read the second article in the ANBA series about the transformation of Santos tomorrow.
*Translated by Mark Ament
