São Paulo – The oil discoveries in the pre-salt layer of Santos Basin, on the southeastern coast of Brazil, is already provoking great social, economic and technological impact on Santos, a city with 430,000 inhabitants that is some 80 kilometres away from the city of São Paulo.
"Undoubtedly the transformation of the city into the headquarters of the [Petrobras] business unit for the whole of Santos Basin has triggered a series of movements in the economy of the city and region. Investment in hotels, high-end housing units and business complexes are greatly due to Petrobras news," said the mayor of Santos, João Paulo Tavares Papa.
According to him, there was significant real estate appreciation in Santos and surrounding areas. A quick visit to the city shows ads by large construction companies and real estate developers like Helbor, Gafisa, Agre and Camargo Corrêa Desenvolvimento Imobiliário.
"A new and vigorous development cycle that is seen with great optimism by the private sector, city hall and São Paulo state government has started. We must get ready to supply this cycle, which requires training and knowledge in an area that is new," pointed out the mayor.
According to Papa, Santos had already lived a moment of acceleration in the port area. The city houses the main port in the country. "But this was intensified with the discovery of oil and opened up the region’s doors to a new area, one that is challenging to us, in the shape of technology. Today, Santos is one of the technological hubs in the state of São Paulo, and much of this idea has been strengthened by the arrival of Petrobras," he pointed out.
Now, universities and public and private technical schools are offering courses for professional training in oil and gas, established due to Petrobras’ current and future needs. "The company participates actively in the elaboration of the curricula," said Papa.
Another front is called BS Network of Oil and Gas Companies and Oil and Gas Theme Chamber of the Development Council for the Metropolitan Region of Santos and Outskirts (Condesb), formed to stimulate the training of companies interested in operating as service providers for Petrobras.
Revitalisation
Little by little, the city is gaining new forms and colours. The onshore platform for offshore pipelines, on José Menino beach, for example, gained an industrial park of 43,000 square meters, designed by architect Ruy Ohtake. Sites like these share space with buildings that are being erected all around. Ponta da Praia, close to the ferry that heads to Guarujá, is where most of the works are being developed. There, the price of a square meter of land is around 4,000 Brazilian reals (US$ 2,300). Santos-Guarujá Bridge, an ancient request by residents of the region, should receive 700 million reals (US$ 400 million) and eliminate the traffic on the ferry.
And due to its prominence, the city is receiving funds to diversify public works. This is the case with Santos Novos Tempos, a program that forecasts heavy investment in infrastructure and housing and counts on funds from the World Bank. It is a program of around 550 million reals (US$ 320 million). Some 7,500 houses will be built for the residents of a slum in a tidal region.
Apart from the World Bank, the project also includes the Federal Government, with funds from the Growth Acceleration Program (PAC), and the government of the state of São Paulo through the Housing and Urban Development Company (CDHU).
Santos also counts on the Alegra Centro (Happy Centre) Programme, established to preserve the historic assets of the central region of the city. "It is a program that is public and also private, as it offers municipal legislation including tax breaks to owners who redo their real estate and guarantee their permanent occupation," said the mayor. "This program, while redoing hundreds of buildings, is bringing economic movement to the central region, and has been expanding in recent years," he added.
The strategy for the project, as well as fiscal incentives, includes making the centre an attractive place for tourism, with theatres that were redone, cultural spaces and attractions like the five kilometres of trams that cover the entire city centre, with trams coming from several areas of the world, like Scotland, Italy and Portugal.
"The project even resulted in the city hall establishing the Tram Museum. The space is already complete. It is an ancient museum that was redone and delivered some two months ago," said Papa. The site should have plays, information and documents about the history of electric trams in the city.
Tourism on the rise
Due to these and other initiatives, growth in tourism in the city is expected. In the past it was already a great favourite on the coast of São Paulo. Last summer, the local economy received 401 million reals (US$ 235 million) in the sector. According to the Santos Retail Union, there was also growth in average daily per capita expenditure, which climbed from 75 reals (US$ (US$ 44) to 80 reals (US$ 47) in the same period. The total does not include the results of the 2009-2010 cruise season, which generated a turnover of 230 million reals (US$ 135 million) in the city, 1,100 direct jobs and 8,000 indirect jobs, according to Concais, the company that manages Giusfredo Santini Passenger Terminal.
One of the projects aimed at attracting more tourists to the city is the construction of Pelé Museum, one of the icons of the Alegra Centro project. The museum should receive investment of 20 million reals (US$ 12 million) and should be ready in 2012. It is worth recalling that the world’s largest football idol played for Santos Football Club over a large part of his career.
Another high point for remilitarisation of the historic centre is a port complex. Santos Valongo Port Project should transform an area of 55,000 square meters, unused for 20 years, into a tourism, nautical, cultural and business complex, with a cruise terminal, public marina, offices, restaurants and water transport terminal.
Santos is also the capital of sea cruises and, in the 2010-2011 season, 22 ships should transport 1 million passengers, a record figure. The new cruise dock, planned to receive tourists coming to the 2014 World Cup, should cost 160 million reals (US$ 94 million). Eyeing this opportunity, Santos plans to be a secondary host for the World Cup and to receive one of the national teams.
According to mayor Papa, the image of King Pelé may help attract tourists to the city. Vila Belmiro, the local team’s stadium, should be redone and modernized to be another tourist attraction.
"The city aquarium was also recently expanded and modified and the shoreline should also be worked on next year, receiving new bars, bathrooms and support equipment," said Papa.
The opening of international hotels like Comfort, Ibis and Mercure also shows how the local economy is being strengthened. With these new hotels, to make available over 2,200 beds, the city capacity will be doubled.
Tomorrow, read the fourth article in the ANBA series about the development of Santos after the discovery of pre-salt layer oil.
*Translated by Mark Ament
