In its debut in highway auctions in Brazil, the French infrastructure giant Vinci Highways won the concession of BR-040 (known as the Crystal Route) for 30 years.
Offering a discount of 14.32% on the minimum toll rate, the French proposal was well ahead of the competition: Opportunity, BTG, and CCR offered discounts of 9%, 7.5%, and 1.75%, respectively.
Now, Vinci (pronounced “vanci”), which holds over 100 concessions in 24 countries, will manage about 600 km of highway between the city of Cristalina in Goiás and the capital of Minas Gerais.
This stretch was part of a 937 km concession operated by Invepar, which has been selling assets in recent years to deal with its leverage.
For analysts, Vinci’s entry is a sign that the regulatory environment has improved. Vinci Highways’ CEO for Latin America, Laurent Cavrois, said after the auction that Vinci’s presence in Brazil seemed “challenging” in the past.
Vinci is expected to invest around R$ 6.6 billion in BR-040, with improvements such as the construction of 343 km of additional lanes and the duplication of another 10 km.
Although this was Vinci’s first successful road auction, the company acquired 55% of Entrevias last year, which owns nearly 600 km of highways in the interior of São Paulo. The remaining 45% is still owned by Pátria.
Furthermore, Vinci, through its subsidiary Vinci Airports, is responsible for managing eight airports in Brazil.
According to BTG analysts covering the sector, the auction shows that Vinci wants to be a major local player in highways; the company operates this type of concession in 14 countries.
Some competitors share the same view.
“It is a major player, familiar with the sector, and will be a key player,” said a manager in the sector. “But the impression is that they prefer more mature assets with less capex to develop.”
This appetite will be tested in upcoming auctions. Transport Minister Renan Filho estimates that the government will make five more highway concessions by the end of the year and another six in the first half of 2025.
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
