SWOT-analysis
Strengths include:
Rio de Janeiro is the second most important economic center in the country after the Brazilian Sao Paulo. In Rio, there are many enterprises; service industry is well developed; there are many financial institutions and offices of international companies (Central Intelligence Agency, 2016).
Rio de Janeiro has almost all types of public transport, except for the trolley – there are subways, buses, and taxis, and regular taxis and trams and funicular, and even hybrid tram and funicular (wide assortment).
Low labor expenses (labor costs index was equal almost 115 points in February 2016 and average salary of about $600) (Trading economics, 2016).
High market entry barriers (the internal business is supported).
Weaknesses concern:
Extremely high crime level (over 90%) (Numbeo, 2016).
Great language barrier with English visitors as Portuguese is official language and widely spoken (Central Intelligence Agency, 2016).
Weak transport infrastructure (for example, presence of only two airports in the city).
Numerous competitors in the similar vacation industry.
Opportunities include:
Brazil is the participant of numerous political, financial and social global establishments (Central Intelligence Agency, 2016).
Forecast of moderate growth of the Brazilian passenger automobile market (Berger, 2014).
Trade surplus (export increased by 10.4% in February 2016, where 10% belong to transport equipment) (Trading economics, 2016).
Promotion of tourism attractions leads to increase in the number of tourist arrivals (almost six million in 2013) (Trading economics, 2016).
Summer Olympics in 2016, which will attract more visitors to the city.
Rio de Janeiro has a population of over six million people (6.5 million people), with an agglomeration the population is almost thirteen million (Institute for Transportation & Development Policy, 2015).
Increase of urbanization in the country (Central Intelligence Agency, 2016).
TransCarioca, cities second BRT passageway, generates a 38% decrease in carbon dioxide emissions (Institute for Transportation & Development Policy, 2015).
Extensions to public transportation paths, extra biking arrangement, and policies on metropolitan system (Institute for Transportation & Development Policy, 2015).
There is a single Kari-Oca ticket, the essence of which lies in the fact that passengers, who make a change to another bus for 2 hours twice a day, do not pay for the second time.
Threats concern:
Unstable political situation in the country (Berger, 2014).
Substantial decrease in GDP growth (Berger, 2014).
High level of inflation in the country (10.36% in February 2016) (Trading economics, 2016).
High level of unemployment in Brazil (up to 8.2%), where Rio is known to be one of six metropolitan areas for the calculation of index (Trading economics, 2016).
Challenging condition of commercial automobiles’ industry (Berger, 2014).
High taxes (it is difficult to start a business) (Berger, 2014).
Stakeholder analysis
Major transport projects bring significant benefits, both direct and indirect, but in a crisis the state resources are limited. As a result, there are new forms of organization and procedure, by which stakeholders can participate directly or indirectly in the financing of road projects. The main stakeholders are road users, passengers, government and municipal authorities, local residents and businesses located in the project area, the owners of land and property located in the transport corridor project and investment institutions interested in profitable investments. First of all, implementation of the congestion charge will concern drivers. According to the congestion pricing system, drivers, taking into account the cost of the trip, may take their own decision on the expediency of such a trip.
The purpose of the investors (the state and (or) individuals), who are funding the development of transport infrastructure is getting benefits. For the state, it is the creation of a public good and welfare of the population, promoting employment and the production of GDP, and for private investors – the subsequent refinancing of investment in transport infrastructure object created by a levy.
The main criticism for the use of toll roads is that it is unfair for certain groups of people, starting from drivers, who have a low income and cannot afford toll roads, to the people living in those price zones, who will be forced to bear a disproportionate share of taxes simply because they live in poverty. Another option is to offer discounts for certain categories of drivers. In some cities the disabled are exempt from duties. Discounts may also be granted to other categories of drivers, such as for people below a certain cost of living level or those, who live in the zone of the toll road. In London, the inhabitants of imposed by charges traffic areas get 90% discount (Waliszewski, 2005).
Secondly, public support for the integration of the project as an urban transport strategy is necessary. Thirdly, it is important to arrange a detailed consultation process with a view to ensuring the interests of different groups of actors and stakeholders. Representatives of other urban transport services and departments should be invited to discuss the project, which will build a constructive working relationship. Different groups of users of transport services should also be involved in the process through a public information campaign (Perez, Giordano, Reno and Stamm, 2011).
The general public should also be involved in consultation on aspects of the project as benefits, paybacks and discounts offered to drivers, and identification of certain intervals, during which it is advisable to charge a fee to enter special city area. This will resolve misunderstandings and differences and, as a result, prevent the opposition and discontent towards the project.
Works Cited
“2015 Sustainable Transport Award Finalist: Rio de Janeiro, Brazil.” Institute for Transportation & Development Policy. 2015. Web. 31 March 2016.
“Brazil – Economic Indicators.” Trading economics. 2016. Web. 31 March 2016.
“Crime in Rio De Janeiro, Brazil.” Numbeo. 2016. Web. 31 March 2016.
“South America: Brazil.” Central Intelligence Agency. 2016. Web. 31 March 2016.
Berger, Roland. “Automotive market perspectives Brazil 2014-2018: Current market challenges and counter strategies.” October 2014. Web. 31 March 2016.
Gaier, Rodrigo Viga. “Rio de Janeiro declares health system emergency as Olympics loom.” Reuters. 24 December 2015. Web. 31 March 2016.
Perez, Benjamin Gerry, Giordano, Reno and Stamm. Heidi. Evaluation and Performance Measurement of Congestion Pricing Projects. Transportation Research Board. 2011. Print.
Waliszewski, Janine M. Towards understanding the impacts of congestion pricing on urban trucking. Massachusetts Institute of Technology. 2005. Print.
