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Ester Sanches Naek Personality of the Month

In this issue

Pg10

Gerdau Long Steel North America – Beaumont Steel Mill Pg12

Irineu Evangelista de Sousa, Viscount of Mauá Pioneer of industrialization in Brazil Pg14

The world’s largest oil discoveries in recent years have come from Brazil’s offshore, pre-salt basins Pg18

Barack Obama and Nelson Mandela met in person in 2005.

Brazilian Airport Privatization Second Round Concessions Pg22

Mandela and Pele

“Yours was truly a long walk to freedom. Now you have achieved the ultimate freedom in the bosom of God, your maker", the funeral officiator said on a Sunday, December 15, 2013 at the grave site overlooking scenic rolling green hills. Cannons fired a 21-gun salute over Qunu, Mandela’s quiet childhood farm village, where he was buried with presidential and military honors at the sound of the South African national anthem "Nkosi Sikelel' iAfrika" or "God Bless Africa”. Freedom fighter, political prisoner, moral compass icon, peacemaker, and South Africa's symbol of the struggle against racial and social oppression. Nelson Mandela, emerged from prison after 27 years to achieve his final conquest – to lead his country out of decades of apartheid oppression. Born on July 18, 1918 in Myezo, Transkei, he died on Thursday evening December 5, 2013 in Houghton, Johannesburg, South Africa at the age 95. Mandela is survived by six children, 17 grandchildren and 14 great grandchildren. His persistent message of reconciliation, without any trace of anger and revenge, inspired the world after he negotiated a peaceful end to segregation and urged total and unconditional mutual forgiveness within the South African society. Pg6


Editorial The fight continues and once again, we are here with you, navigating in the right direction, and bringing a world of information. I am sure the information that I bring will be very valuable and extremely important. We are here to develop new ideas, introduce you to the existence of several businesses ideas, publish articles by qualified professionals, and recognize the great people in our community. Our goal is to be the liaison between the two countries U.S. and Brazil. In 2013, the Brazilian Texas Magazine introducted to the Texas audience two important Brazilian companies: Gerdau and Odebrecht. Gerdau is a 112-yearold company that began as a small nail factory in Porto Alegre, Brazil, called Pontas de Paris. Today, the steel company has 45,000 employees and industrial operations in 14 countries in the Americas, Europe, and Asia, with an installed capacity exceeding 25 million metric tons of steel per year. Odebrecht is a service-driven organization with world-class standards and capabilities. Founded in Brazil in 1944, the Odebrecht Organization has grown to be a diversified business leader laying the groundwork for positive sustainable change worldwide. Today, Odebrecht operates in more than 30 countries and has more than 185,000 team members united by a common culture, the Odebrecht Entrepreneurial Technology (TEO). We want to extend our hands to all people interested in building relationships between these two nations. In pointing our arrow in the right direction and doing a good job, we received excellent feedback from professionals in all areas,areas; professionals that are extremely successful in their businesses but also feel the need to support the cause and extend their hands to continue helping us in the ladder of success with our magazine. We must always give back the respect and confidence that these professionals have in us. We hope that in reading this new edition you enjoy our interviews and articles, and we hope that you will become our new partner in the Brazilian Texas Magazine.

Sergio Lima

Editorial Staff Editor-in-Chief Sergio Lima Foreign Correspondents Brazil Sergio Luis Sergio@braziliantexasmagazine.net Rio das Ostras, RJ Brazil Leandro Lima Leandro@braziliantexasmagazine.net Rio de Janeiro, RJ Brazil Mexico Jobell Lima Jobell@braziliantexasmagazine.net Guadalajara, Mexico Editorial Board Miriam Meira Maria Drell Joe Rondan Raulina Dathe Associate Editor Valter Aleixo Contributing Editor Otto Fanini Cover Joe Rondan Photos Raulina Dathe

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4 Brazilian Texas Magazine 2013

CONSULADO-GERAL DO BRASIL EM HOUSTON


BRAZIL-TEXAS CHAMBER OF COMMERCE Communication and Education Committees We are pleased to announce that our Directors Ulisses Sperandio – Schlumberger is now Chairman of the Communication Committee, and David Vassar - Rice University is Chairman of the Education Committee. These two committees will allow BRATECC to explore and expand our activities to better serve BRATECC members, friends and colleagues.

MOU Signing: Investe São Paulo BRATECC has acquired a new opportunity by signing an MOU with Investe São Paulo fostering mutual cooperation. www.investe.sp.gov.br

São Paulo, The Place for Pre-Salt Exploration Breakfast In addition to signing the M.O.U. BRATECC organized a seminar at The Houstonian Hotel Club and Spa where Mr. Almeida informed an audience of entrepreneurs about the great opportunities of investments in the state of São Paulo.

Membership Benefit: BIC Clipping Exclusivity Brazil-Texas Chamber of Commerce has recently renewed its commitment to a closer mutual cooperation with the Brazil Industries Coalition (BIC). As a courtesy, BIC started sending its BIC Clipping to all Bratecc Members, a daily email showing a synopsis of news and articles covering United States and Brazil published in major media outlets. www.bic-us.org

In with the New

Visit our new website: www.braziltexas.org You may also now like us on Facebook simply search our name!

5 Brazilian Texas Magazine 2013

Brazil-Texas Chamber of Commerce

10700 Richmond Ave. Ste 315 Houston, TX 77042 US Phone: 713.454.7954 Fax: 713.783.3696 From Brazil: +(11)-3131-6188


Nelson Mandela "As I walked out the door toward the gate that would lead to my freedom, I knew if I didn't leave my bitterness and hatred behind, I'd still be in prison," Mandela said after he was freed in 1990. Mandela, a former president, battled health issues in recent years, including a recurring lung infection that led to numerous hospitalizations. Despite rare public appearances, he held a special place in the consciousness of the nation and the world. "Our nation has lost its greatest son. Our people have lost a father," South African President Jacob Zuma said. "What made Nelson Mandela great was precisely what made him human. We saw in him what we seek in ourselves.” Great progress has been made towards an independent constitutional democratic republic which is free of racism but challenges remain to economically integrate and raise the standard of living of all segments of society. A classical expression of Mandelas’ philosophy and thinking is expressed in his famous speeches such as “History Will Absolve Me” (Four hour Court oral defense statement) and “I Am Prepared to Die”.

By: Otto Fanini

A total of seven impressive films covered various aspects of Nelson Mandela’s life such as “Mandela” (1987), “Mandela” (1996),” Mandela and de Klerk” (1997),” Goodbye Bafana” (2007), “Invictus” (2009), “Winnie Mandela” (2011), “Mandela: Long Walk to Freedom” (2013). Writers also could not miss the opportunity to register facts and document aspects of Mandela’s life in the following books “Long Walk to Freedom” and “Mandela: The Authorized Biography”. The” Long Walk to Freedom” title had been inspired by a quote from Indian independence leader Jawaharlal Nehru. “Noncooperation with evil is as much a duty as is cooperation with good.” Mahatma Gandhi. He advocated the non-violent technique of satyagraha to achieve ones goals. During the Indian struggle for independence, Gandhi’s speeches and writings taught his followers to follow “ahimsa” what revealed his belief that violence could never be the way to achieve any objective. Ahiṃsa, a term from Sanskrit hymns, is a fundamental life practice principle forming the cornerstone of ethics, love and philosophy in Jainism meaning “Do not harm”.

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For the first time on April 27, 1994, black South Africans line up to vote in the first democratic election, which will make Nelson Mandela the first black President of South Africa. Black South Africans had never been allowed to vote before.

“What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead.” By Nelson Mandela. Nelson Rolihlahla Mandela, son of Gadla Henry Mphakanyiswa, was born on July 18, 1918 in the small village of Mvezo, on the Mbashe River, district of Umtata in Transkei, South Africa. His Father named him Rolihlahla, which means "pulling the branch of the tree". The name Nelson was not given until his first day at school. In 1930 Mandela lost his father at the young age of twelve. Nelson Mandela belonged to the Madiba clan and held a direct descendant line to the Thembu’s tribal royalty ancestral chief which once ruled the area in the 18th century. With the advent of European colonial domination of the region, attracted by mining opportunities, the governing tribal royalty was displaced from power but maintained title to the land through descending generations who remained in the region. In 1934 Mandela attended a three-month initiation school graduating from the Clarkebury Missionary School. Four years later he graduated from Healdtown, a Methodist college, and moved forward to pursue higher education at the University of Fort Hare. The University of Fort Hare was South Africa's first university college opened for Black African students. While attending this college, Mandela first met his lifelong friend and associate Oliver Tambo.

Before graduating, both Nelson Mandela and Oliver Tambo were expelled from Fort Hare in 1940 due to campus political activism reflecting their young and boiling dreams of free independent democratic South Africa with a prosperous society free of racism and oppression. Both Nelson Mandela and Oliver Tambo were expelled from Fort Hare in 1940 for political activism. After this setback Mandela sought the comfort of his mother and both moved to a small house in Alexandra, a Black suburb of Johannesburg. Nelson Mandela’s resolve to obtain his college degree lead him to continue in the evenings his education through a correspondence course with the University of South Africa (now UNISA) while working as a clerk in the Terblanche and Briggish law firm. Mandela completed his Bachelor’s degree in 1941. In 1942 he worked at another liberal-run Helman and Michel law firm while seeking a law degree at the University of Witwatersrand. Here he met his classmate, Seretse Khama, who would later become the first president of independent Botswana. During this period he started his political career by joining the African National Congress (ANC) and soon his disappointment grew realizing the ANC’s compromising approach was very ineffective to realize his dreams. Alternatively Nelson Mandela, along with Oliver Tambo, Walter Sisulu, and a few others formed the African National Congress Youth League (ANCYL).

Font:www.collarcitybrownstone.com

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During the Cold War the Communist Soviet Block made substantial political investments in the African continent following similar colonial expansionist ambitions to expand its global influence by supporting independence movements. During the 1950’s the South African government was unable to address, pacify, and distinguish between foreign subversion interference and genuine multi-racial native grassroots movement differences. The government applied instead controversial and ineffective radical blanket measures in a failing attempt to deal with the mix of these two conflicting forces failing to chart a path of peace, equilibrium and socioeconomic development.

Free Nelson Mandela Protest, Germany 1986

In 1947 Mandela was elected as secretary of the ANCYL and also became a member of the Transvaal ANC executive team. Mandela initially opposed cooperation with communists and non-blacks by supporting in December 1947 an unsuccessful measure to expel communists from the ANCYL for considering their ideology foreign to African tribal cultures and un-African. Later on he did not change this opinion but became less vocal about it as a strategy to increase and broaden the support for the anti-apartheid movements. By 1948 Nelson Mandela passed the lawyer qualifying exam allowing him to practice law. Nelson Mandela opened with Tambo the first Black legal practice office in South Africa in 1952. In order to pay the bills and keep food in the table it was difficult for both Mandela and Tambo to balance their schedules between their groundbreaking legal practice and their political aspirations and initiatives. Mandela’s law office city permit was later revoked under the Group Areas Act and was forced to move to a remote location consequently loosing clients. By 1948 the ANC became increasingly influenced by the ANCYL with its leadership appointments and policies coming from the ANCYL. Nelson Mandela, Oliver Tambo, and Walter Sisulu became core leaders and thinkers within the ANCYL. Walter Sisulu proposed for the ANCYL a more proactive and result oriented agenda, the ‘Programme of Action’, which was subsequently adopted by the ANC. A Joint Defiance Campaign was launched with broader mixed participation and support inspired by a path of nonviolent resistance influenced by Mahatma Gandhi involving boycotts, strikes, peaceful marches, etc…. The ANC attracted participants from different ethnic groups and a variety of participants in the political spectrum resulting in substantial membership growth. Mandela was elected president of the ANCYL in 1951. That year Mandela also became president of the Transvaal ANC, but was banned under the “Suppression of Communism Act” as a consequence of a large and broader political participants attracted by the Joint Defiance Campaign. Mandela was prohibited from holding any office position within the ANC, banned from attending ANCYL meetings, and restricted to visit the ANCYL stronghold districts around Johannesburg.

Fearing for the future of the ANC, Nelson Mandela and Oliver Tambo initiated the M-plan (M for Mandela). The ANC would be broken down into cells so that it could continue to operate, if necessary, underground. Under the banning order, Mandela was restricted from attending meeting, but he drove down to Kliptown in June 1955 to be part of the Congress of the People; and by keeping to the shadows and the periphery of the crowd, Mandela watched as the Freedom Charter was adopted by all the groups involved. On 5 December 1956, in response to the adoption of the Freedom Charter at the Congress of the People, the Apartheid government in South Africa arrested a total 156 people, including Chief Albert Luthuli (president of the ANC) and Nelson Mandela in a severe blow against the anti-apartheid movements. This arrest included almost the entire leadership of the Congress Alliance formed by executives of the African National Congress (ANC), Congress of Democrats, South African Indian Congress, Colored People’s Congress, and the South African Congress of Trade Unions. During this arrest, the group was charged with “high treason and a countrywide conspiracy to use violence to overthrow the present government and replace it with a communist state.” The punishment for high treason was death. In March 1956 Mandela received his third ban on public appearances. The Treason Trial dragged on, until Mandela and his 29 remaining co-accused were finally acquitted in March 1961. The 1955 Congress of the People and its moderate stance against the policies of the Apartheid government eventually shifted to younger and more radical ANC members who migrated towards the more appealing and proactive Pan Africanist Congress (PAC). The PAC was formed in 1959 under the leadership of Robert Sobukwe. The ANC and PAC became instant rival movements, competing especially in the townships. This rivalry came to a head when the PAC rushed ahead of ANC plans to hold mass protests against the pass laws. Both parties campaigned for an anti-pass campaign in May 1960, in which Africans burned the passes that they were legally obliged to carry. One of the PAC-organized demonstrations was fired upon by police, resulting in the deaths of 69 protesters in the Sharpeville massacre. On March 21, 1960 at least 180 black Africans were injured and 69 killed when the South African police opened fire on a large number of unarmed demonstrators at Sharpeville. In solidarity, Mandela publicly burned his pass as rioting broke out across South Africa, leading the government to proclaim martial law.

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Under the State of Emergency measures, Mandela and other activists were arrested on March 30, 1960. Both the ANC and PAC responded in 1961 by setting up military wings. Nelson Mandela, in what was a radical departure from traditional ANC non-violence policy, was instrumental in creating the ANC group: Umkhonto we Sizwe (MK - Spear of the Nation), and Mandela became the MK’s chairman and first commander. The Pogo was formed as the PAC movement’s military wing. Both the ANC and PAC were banned by the South African government under the Unlawful Organizations Act in 1961. The MK and the PAC’s Poqo responded by commencing with campaigns of sabotage. During this period Mandela remained quiet about his previously outspoken suspicion of communists and harvested ideas from illegal literature on guerilla warfare led by Mao Zedong, Che Guevara and Fidel Castro guerilla campaign leaders. Historians say, this trend towards violence might have delayed the and of Apartheid by a dekade.

Mandela Hiding Place Liliesleaf Farm

Although officially and apparently separate from the ANC in its inception, in later years the MK became the ANC’s armed wing. Most of early MK members were white communists. After hiding in communist Wolfie Kodesh’s flat in Berea, Mandela moved to the communist-owned Liliesleaf Farm in Rivonia. There he was joined by Raymond Mhlaba, Slovo and Bernstein, who put together the MK constitution and action plans. MK agreed to acts of sabotage to exert maximum pressure on the government with minimum casualties, bombing military installations, power plants, telephone lines and transport links at night, when civilians were not present. Mandela himself stated that they chose sabotage not only because it was the least harmful action, but also “because it did not involve loss of life it offered the best hope for reconciliation among the races afterward.” He noted that “strict instructions were given to members of MK not to cause harm or loss of life during sabotage operations”,

FIFA Blatter 2010 Cup Hosting Preparation

Michelle Obama’s family and Mandela

but should these tactics fail, MK would ultimately resort to “guerilla warfare and terrorism” In 1962 Nelson Mandela was smuggled out of South Africa to Tanzania which served as ANC temporary headquarters. He first attended and addressed the conference of African nationalist leaders, the Pan-African Freedom Movement, in Addis Ababa. From there he went to Algeria to undergo guerrilla training, and then flew to London to catch up with Oliver Tambo (and also to meet members of the British parliamentary opposition). On his return to South Africa, Mandela was arrested on August 5, 1962 and sentenced to five years for “incitement and illegally leaving the country”. On 11 July 1963 a raid was undertaken on Lilieslief farm in Rivonia, near Johannesburg, which was being used by the MK as headquarters. The remaining leadership of the MK was arrested. Nelson Mandela was included at trial with those arrested at Lilieslief and charged with over 200 counts of “sabotage, preparing for guerrilla warfare in South Africa, and for preparing an armed invasion of South Africa”. Mandela was one of five (out of the ten defendants) at the Rivonia Trial to be given life sentences and sent to Robben Island. Two more were released, and the remaining three escaped custody and were smuggled out of the country. At the end of his four hour statement to the court Nelson Mandela stated: "During my lifetime I have dedicated myself to this struggle of the African people. I have fought against white domination, and I have fought against black domination. I have cherished the ideal of a democratic and free society in which all persons live together in harmony and with equal opportunities. It is an ideal which I hope to live for and to achieve. But if needs be, it is an ideal for which I am prepared to die."(“I Am Prepared to Die" speech).

Robben Island Prison Cell Furniture


" These words were said to sum up during the trial the guiding

principles by which he worked for liberation of South Africa.

In 1976 Nelson Mandela was approached with an offer by James (Jimmy) Thomas Kruger, the Minister of Justice and the Police serving under Prime Minister Balthazar Johannes Vorster (1974-1979) to renounce the struggle and settle in the Transkei. Mandela refused. By 1982 the growing international pressure against the South African government gave high international visibility to the release of Nelson Mandela and his imprisoned compatriots. The South African President, Pieter Willem Botha, arranged for Mandela and Sisulu to be transferred back to the mainland to Pollsmoor Prison, near Cape Town. In August 1985, approximately a month after the South African government declares a state of emergency, Mandela was taken to hospital for an enlarged prostate gland. On his return to Pollsmoor he was placed in solitary confinement (having a whole section of the jail reserved to himself). In 1986 Nelson Mandela was taken to see the Minister of Justice, Kobie Coetzee, who requested once again that he ‘renounce violence’ in order to win his freedom. Despite refusing, restrictions on Mandela were somewhat lifted and relaxed: he was allowed visits from his family, and was even driven around Cape Town by the prison warder. In May 1988 Mandela was diagnosed with tuberculosis and was moved to Tygerberg hospital for medical treatment. Upon his release from hospital he was moved to ‘secure quarters’ at Victor Verster Prison near Paarl. By 1989 things were looking bleak for the Apartheid regime as its existence could not be supported politically and economically much longer. Its existence was surely coming to an end. Pieter Willem Botha had a stroke, and shortly after ‘entertaining’ Mandela at the Tuynhuys, the presidential residence in Cape Town, he resigned. Frederik Willem de Klerk was appointed as his presidential successor. Mandela met with President De Klerk in December 1989, and in the following year at the opening of parliament (February 2, 1990) De Klerk announced the unbanning of all political parties and the release of political prisoners (except those guilty of violent crimes). On February 11, 1990 Nelson Mandela was finally released. By 1991 the Convention for a Democratic South Africa, CODESA, was set up to negotiate constitutional change in South Africa.

Nelson Mandela Burial Qunu

Both Mandela and De Klerk were key figures in the negotiations, and their efforts were jointly awarded in December 1993 with the Nobel Peace Prize. When South Africa’s first multi-racial elections were held in April 1994, the ANC won a 62% majority. Mandela revealed later that he was worried if he would achieve the 67% majority necessary to allow his government to re-write the constitution. A Government of National Unity, GNU, was formed – based on an idea promoted by Joe Slovo, the GNU could last for up to five years as a new constitution was drawn up. It was hoped that the New Constitution would calm the fears of South Africa’s white population suddenly faced with majority Black rule guaranteeing equal rights and treatment for all. On May 10, 1994 Nelson Mandela made his inaugural presidential speech from the Union Building, Pretoria: “We have at last, achieved our political emancipation. we pledge ourselves to liberate all our people from the continuing bondage of poverty, deprivation, suffering, gender, and other discrimination. Never, never, and never again shall it be that this beautiful land will again experience the oppression of one by another... Let freedom reign. God Bless Africa!". Shortly after Mandela’s presidential inauguration, he published his autobiography, “Long Walk to Freedom”. In 1997 Nelson Mandela stepped down as leader of the ANC in favor of Thabo Mbeki, and in 1999 he relinquished the post of ANC president. Despite claims to have retired, Mandela continued to have a busy life. What comfort could we have after the enormous loss of a giant leader? After his death his life will continue a forever shining light house for all South African generations to come promoting fraternity, equality and justice for all. Nelson Mandela eternally rests in the hands of the Lord interceding for the transformation, liberation and restoration of all suffering and oppressed human beings in all corners of our planet Earth. “Blessed are the pure in heart, for they shall see God. Blessed are the peacemakers, for they shall be called sons of God.

Kofi Annan ONU Nelson R. Mandela 2006

Blessed are those who have been persecuted for the sake of righteousness” (Matthew Chapter 5: verses 8, 9 and 10)

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Gerdau Long Steel North America – Beaumont Steel Mill Gerdau is a 112-year-old company that began as a small nail factory in Porto Alegre, Brazil, called Pontas de Paris. Today, the steel company has 45,000 employees and industrial operations in 14 countries in the Americas, Europe, and Asia, with an installed capacity exceeding 25 million metric tons of steel per year. The company first entered the North American market in 1989, when it purchased Canada’s Courtice Steel. A decade later, Gerdau began a series of acquisitions that resulted in 130 locations and a capacity of more than 10 million tons of finished steel products in the U.S. and Canada. The company has a particularly large footprint in Texas, with steel mills in Beaumont and Midlothian, Texas, as well as downstream facilities in Beaumont, Farmersville, Navasota, and Carrollton. The company’s growth in the Texas market is a reflection of the state’s strong economy relative to the rest of the nation. In 2012, Texas consumed more rebar than any other state, accounting for approximately 15 percent of nationwide consumption, according to the Concrete Reinforcing Steel Institute. Gerdau’s mill in Beaumont started production in 1976 as Georgetown Texas Steel and was acquired by Gerdau in 2004. It is a two-strand wire rod mill with a capacity of 700,000 tons of wire rod and coiled rebar. Wire rod from the Beaumont Mill is used to manufacture hundreds of diverse products.

These products include items for the construction and power industries,civil projects, automotive fasteners, springs ,agricultural products, welding electrodes and a multitude of others. It exports to Canada, Mexico, Central and South America by rail or from its neighboring Port of Beaumont. The Midlothian mill started production in 1975,as Chaparral Steel and was acquired by the company in 2007. It has the capacity to produce 1.8 million tons of hot-rolled steel products annually, manufacturing many types, sizes and grades of structural steel, flat sheet pile and special bar quality rounds. Both facilities produce steel from recycled scrap metal through an electric arc furnace process. Much of the recycled raw material comes in the form of vehicles, vehicle parts, old home appliances, and other industrial by-products, such as demolished buildings. This method of steel production consumes fewer materials and less energy than traditional integrated steel mills, and has made steel the most recycled material in the world, more than paper, plastic, aluminum and glass combined. The two mills employ more than 1,200 employees, and both locations are heavily involved with social responsibility efforts in their communities. Gerdau is listed on the stock exchanges of São Paulo, New York, and Madrid and has over 130,000 shareholders.

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Ester Sanches Naek Personality of the Month Ester Sanches-Naek has owned several businesses and founded a dozen community works in the State of Minas Gerais - Brazil. Mrs. Sanches-Naek is President and founder of the Brazilian Community and Cultural Center of Hartford, Inc., as well as the Associação dos Amigos Apaixonados por Alvinopolis; non-profit organizations that help the less fortunate and institutions such hospitals, orphanages, nursing homes, foster homes, etc in Brazil. In the community Ester Sanches-Naek has founded projects, awards, and programs. The Project Restaurar uses proceeds from used clothes, shoes, furniture, and toys donated by UConn Thrift Shop to restore a hospital in Brazil. Other programs have focused on recycling and teaching children computer skills. She also founded the Brilliant Women Awards, the Man of the Year Awards, and the Brazilian Afro-Descendent History Month Alvinopolis, MG - Brazil. In Hartford, Mrs. Sanches-Naek has been a great promoter of the Brazilian culture. She founded the Brazilian

Entrepreneur of Greater Hartford Awards, The Brazilian Day Parade and Festival, the Brazilian Community and Cultural Center, the Shaheen Thrift Shop, the Brazilian Women in Power Awards, the Distinct Women Awards and is the idealist for the openings of the Brazilian Consulate in Hartford and the American Consulate in Belo Horizonte, Brazil. October 30th, 2003 was Ester Sanches-Neak Day in the City of Hartford given by Mayor Eddie Perez. She also received Proclamations, Citations and an Official Statement by Governor Jodi Rell, Mayor Boughton – Danbury, the CT Attorney General Richard Blumenthal and many other authorities. Since 2002, she has been honored every consecutive year as the Best Female of the State of Minas Gerais, Brazil. She was also listed as one of the 100 Most Notable Brazilians in the US; has been the cover of the Hartford Magazine as the Best Dressed and the Latino Magazine as a model of professional mother.

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Brazilian Texas Magazine 2013


Personality of the Month

Ester Sanches-Naek worked as a columnist for many Brazilian and Latino newspapers while producing her own TV Show: Brazil in Focus. She is an Official Portuguese Translator, Public Notary, and the only Brazilian Justice of the Peace in the United States of America. She was on the Board of Director of YMCA - Indian Valley - Vernon, CT in 2005. At the present she is on the Board of the Hartford Marathon and the Conferences of Churches, the Tolland Community Women and the Tolland Commemorative Committee. In November 2010 she was elected to represent the Brazilians Abroad within the Ministry of External Relations of Brazil and received the title from the hands of Lula President of Brazil.

Mrs. Sanches-Naek has a dual B.A. in Speech and Language Pathology and Spanish from the University of Connecticut. She received specialization on accents from the University of Boston and currently is studying at Southern New Hampshire University to earn her Master’s Degree in Economic Community Development. She recently received a training to become a Corporate Etiquette and International protocol consultant from the School of Protocol of Washington and on January 31st, 2013, Ester Sanches-Naek completed a 24 hour workshop and became a professional Grant Writer at the University of Hartford. Ester Sanches-Naek is married to Rashid Hamid and has a 14-year old son, Abdul Hamid Naek.

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Pioneer of industr Irineu Evangelista de So Irineu Evangelista de Sousa, the Viscount of Mauá

(1813–1889) was a Brazilian entrepreneur, industrialist, banker and politician. Born to a family of small estancieiros (ranchers), Mauá became one of the world's richest men; by 1867, his wealth was larger than the annual budget of the Brazilian Empire. He was called the Rothschild of the South American continent by the New York Times in 1871. He received the titles of baron (1854) and visconde com grandeza (viscount with greatness) (1874) of Mauá. A pioneer in several areas of the economy of Brazil, one of his greatest achievements was to start the construction of the Mauá Railroad, the first railroad in Brazil. At his peak, Mauá controlled eight of the country's ten largest companies (the remaining two were stateowned); his banking interests stretched over to Britain, France, the United States and Argentina. Mauá also founded the first bank in Uruguay (Banco Mauá Y Cia). Mauá, who established the modern Banco do Brasil, is credited with financing much of the Brazilian economy activity in the 19th century, particularly in coffee plantation, and with the construction of the first railroads, shipyard and cast iron metalwork in the country. Mauá commissioned the first telegraphic submarine cable connecting South America to Europe, developed commercial transportation via steamboats on rivers Amazon and Guaíba, and installed the first gas-fueled street lights in the city of Rio de Janeiro, then Brazil's capital. His fortunes turned around with the decay of the Empire after the Paraguayan War, however, and, by the time he died, Mauá had lost most of his wealth.

Born

28 December 1813 Arroio Grande, Rio Grande do Sul, Brazil (Portuguese Colony)

Died

21 October 1889 (aged 76) Petrópolis, province of Rio de Janeiro

Occupation Business magnate; investor

Legacy and honors At a time in which Brazil was dominated by government-protected landowners who prioritized exports in a slave-based economy, Mauá defended free enterprise, liberalism, industrialization and the abolition of slavery. After his death, he deserved several honors and acknowledgements:

Net worth

$60 billion USD (2009 dollars)

He is the patron of the Ministry of Transport The city of Visconde de Mauá is named after him The Baron of Mauá International Bridge links the city of Jaguarão, Rio Grande do Sul with Río Branco, Uruguay. 14 Brazilian Texas Magazine 2013


rialization in Brazil ousa, Viscount of Mauá 12/28/1813 : Born at Arroio Grande, Rio Grande do Sul State, nearby Uruguay. 1819: His father, João Evangelista de Ávila e Sousa, a livestock farmer is murdered by cow thieves; 1820: Home schooling, by his mother and learning portugese and mathematics. 1821: His mother got married, his custody was transfered to his uncle 1822: Moved with other uncle to Rio de Janeiro. 1824: Started working as clerk in fabric store. 1828: Promoted to book keeper 1829: Irineu is hired by an Import/ Export Company owned by scottish Richard Carruthers. 1836: Became the Manager of Carruthers & Cia. 1837: Richard Carruthers moved back to England, Irineu became partner and leader of the Brazilian operation. 1840: Irineu makes his first trip to England, where he had the opportunity to learn moreabout capitalism and the industrial revolution. 1850: Promoted the installation of water lines of Rio Maracana, supplying of all pipes and materials. 1851: Created the Rio de Janeiro Lighting and Gas Company; reorganized the establishment of Bank of Brasil, opened for the second time. 1852: Created the Amazonas Steam Navigation Company, the Fluminense Transport Company and Petropolis Railway Company (between Mage and Petropolis) 1853: He is the main investor in two new railroads: Pernambuco (Recife & São Francisco Railway Co.) and Bahia (Bahia & São Francisco Co.

1841: Irineu got married with his niece, Maria Joaquina, “May”, they had 18 sons and daughters, but only eleven survived. 1844: Government changed regulations and increase taxes creating more difficulties for his organization, Carruthers & Cia. 1845: Irineu closed-out Carruthers & Cia. 1846: Started new venture: Heavy Industry: forging shipyard and vessel manufacturing in Ponta da Areia, Niteroi. The company was considered the most important organization in Brazil. 1849–1850: With the fleet of boats and tugs built at his shipyard, he started the Barra do Rio Grande Navigation Company . 1854: Inauguration of Public Lighting in Rio de Janeiro (gas burners)

1862: Got concessions for the first public transportation lines in Rio de Janeiro; 1863: Sold his shares of the São Paulo Railway (later Santos-Jundiaí Railway). 1867: Established the Maua Bank. 1867: Inaugurated Santos – Jundiai Railroad. Beginning of financial decline of his empire. 1871: Invesments in Paraná Railway 1872: Starting the agricultural colonies in Rio de Janeiro. Inauguration of the Telegraph System through submarine cables installed between Brazil and Europe. 1874: Organized the Rio Water Supply and Distribution Company.

1854: With the presence of Brazil Emperor, Pedro II, and authorities inaugurated the section of the railroad between the Rio de Janeiro and Petropolis, and the same day, received, from Emperor, the title of Baron of Mauá.

1874: Received from Dom Pedro II the title of Viscount of Mauá.

1855–1856: Worked as deputy-House Representative, and developed a lot of business initiatives in agriculture in Amazonas and the established the frame for the new railroad in Sao Paulo Province, railroad between Santos and Jundiai;

1877: Shutdown the heavy Industry in Ponta da Areia.

1855: With other 182 investors, he created the Mauá, MacGregor & Cia, Financial Institution, with branches in many capitals in Brazil and also branches in London, Paris, New York, Buenos Aires and Montevideo.

1875: Requested debt moratorium to the Commerce Court, with, a 3-year period to pay all debt.

1878: Published an article about the Brazilian Economy and shutdown the Mauá Bank. 1879: Wrote and published a book, explaining the reasons of the decline of his organization, the situation of Brazilian economy and also with his autobiography. 1882: Completed through Petropolis.

railroad

construction

1856: Bad investments in Caminho de Ferro da Tijuca, this company became bank rupted, year later;

1883: Traveled to London to find alternatives for his companies financial situation.

1858: Inauguration of Dom Pedro II Railway, later named Central do Brasil Railway.

1884: At 70 years of age, after paying off all his debits, got back the license to operate, moved to Petroplis and concentrated his business in the coffee market.

1860: Government reduced import duties of equipment, machining, tools and steel; 1861: Acquisition of farms and large tracts of land nearby Sao Paulo;

Gas Plant in Rio de Janeiro

1889: Passed away in Petropolis, under a much stable financial condition.


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Pre-salt oil The world’s largest oil discoveries in recent years have come from Brazil’s offshore, pre-salt basins.

Pre-salt oil is generally characterized as oil reserves situated exceptionally deep under thick layers of rock and salt and requiring substantial investment to extract. A consortium of Petrobras, BG Group, and Petrogal discovered the Tupi field in 2007, which contains substantial reserves in a pre-salt zone 18,000 feet below the ocean surface under a thick layer of salt. Following Tupi, many pre-salt finds were announced in the Santos Basin, such as Iracema, Carioca, Iara, Libra, Franco and Guara. Additional pre-salt discoveries were also announced in the Campos and Espirito Santo Basins. Estimates for the total pre-salt resources vary. Some analysts place total extent of pre-salt recoverable oil and natural gas reserves at more than 50 billion barrels of oil equivalent (boe). In December, 2010 Petrobras submitted a declaration of commerciality to the ANP for the Tupi and Iracema fields, which renamed the fields Lula and Cernambi, respectively. The total recoverable reserve estimate for these fields is 8.3 billon boe (6.5 billion boe for Lula and 1.8 billion for Cernambi). In January, 2011, Petrobras declared the Sapinhoa (formerly Guara) field to be commercial, with a recoverable reserve estimate of 1.1 billion boe. Petrobras plans to develop its major pre-salt assets in three discrete phases:

1) extended well tests; 2) pilot projects; 3) large-scale production through multiple, duplicate floating production, storage, and offloading (FPSO) facilities. Pilot projects in the Lula and Sapinhoa fields began production in 2010 and 2011, respectively. According to Petrobras, Brazil currently produces more than 100,000 bbl/d of oil from its pre-salt fields nits 2013-2017 business plan, Petrobras laid out plans to invest $147.5 billion in exploration and production, $73 billion of which will be in pre-salt exploration and production activities. This investment constitutes a major increase from the $53 billion targeted at pre-salt activities in the previous year’s plan. IThe company is shifting its focus away from downstream and international expansion to the domestic upstream sector. Although Petrobras will finance most of this work through operating cash flow, the company’s 2010 initial public offering ($67 billion) and 2011 and 2012 corporate debt offerings ($6 billion and $7 billion, respectively) all set records.

18 Brazilian Texas Magazine 2013


Pre-salt oil Brazil's pre-salt announcements immediately transformed the nature and focus of Brazil's oil sector.

The potential impact of the discoveries upon world oil markets is vast. However, considerable challenges still must be overcome to produce these reserves. Considering both the large depths and pressures involved with pre-salt oil production, there are significant technical hurdles that must be overcome. Further, the scale of the proposed expansion in production will also stretch Petrobras’ exploration and production resources and Brazil’s infrastructure, as will strict local content requirements.

Brazil’s Pre-Salt Auction Goes to Shell-Total Consortium A consortium led by Anglo-Dutch oil major Shell, France’s Total and PetroChina and its sister company CNOOC, won the bid for Brazil’s Libra deep-water oilfield in a landmark auction on Monday, 21 October. Shell and Total will each have a 20% stake in Libra, with the two Chinese companies holding a 10% stake each and the rest held by Brazil’s state-run Petrobras. A 41.65% cut of “profit oil” from Libra will go to the government, which it will then be able to sell on its own, in line with the minimum requirements for the auction. As Oilprice.com reported earlier in its premium newsletter, Oil & Energy Insider, Chinese involvement in a consortium for Libra was inevitable, though the expectation was that China would be the dominant force in the auction.

The fact that Shell and Total will each have a 20% stake is promising for the Brazilian government and efforts to attract more private investment. “This is a turning point between the past and the future,” said Edison Lobão, Brazil’s oil minister, in a speech before the auction. “With the discovery of the pre-salt fields we will more than double our certified oil reserves in Brazil.” Libra is estimated to hold between 8 billion and 12 billion barrels of oil. Ronaldo Schubert Sampaio 19 Brazilian Texas Magazine 2013


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Brazilian Airport Privatization Summary In 2012, 101 million passengers took

to the skies within Brazil. In 2020, analysts predict that over 195 million passengers are expected to fly within Brazil. In order to address the growing number of travelers serviced by airports that are already operating at or over capacity, the federal government has decided to share the burden of expansion and modernization with the private sector. In 2012, the Brazil federal government, which owns and operates the country’s major airports, initiated plans to semi-privatize three of the nation’s largest airports: Viracopos International Airport in Campinas in the State of Sao Paulo, Guarulhos International Airport in São Paulo, Brasilia International Airport in Brasilia have already been auctioned to a consortium of private sector firms that will soon be making improvements to these airports. This fall, the second round of airports will be partially privatized in a competive auction, which includes the two airports of Galeão International Airport in Rio de Janeiro, and Confins International Airport in Belo Horizonte. The passenger to population ratio has more than doubled in less than a decade in Brazil, where the international airports in the southeastern region, which includes Sao Paolo and Rio de Janeiro, represents more than 70 % of the airport operational passenger demand. With a passenger to population ratio less than a third of most developing nations, the Brazilian airport industry is in critical need of improvements and expansion, particularly in anticipation of the millions of tourist that will descend upon the country forthe World Cup and Olympic Games. The Brazilian Government’s goal is to attract private concessionaires incentivizing them to partner with top operators or hire globally recognized experts in master planning and airport operation to add additional capacity to the nation’s major airports.

Considering the overall revenue ratio from the commercial airport industry in Brazil, the new concessionaries’ plans will work to not only to make improvements such as new runways, aprons, baggage areas and security, but also to ensure maximum revenue generation by focusing on retail expansion opportunities. Initially, master concessionaires’ plans include publicity activities for World Cup-related passenger terminals, studies for the optimization of the available space in those airports’ parking lots, and the concession of areas for the construction of hotels in airport zones . In 2011, non- aeronautical income at Brazilian airports in Brazil amounted to US$ 280 million, 32% of the total revenues. There clearly remains a lot of potential to be explored, especially catering to the needs of passengers in airport transit.

22 Brazilian Texas Magazine 2013

Specia ists believe that retail revenues at the most important airports could easily reach 40% of total revenue which would bring Brazil closer to the globall average share of non-aeronautical revenue for airports. Aside from the concession efforts underway, Infraero, the Brazilian government’s airport management entity, has already begun making substantial improvements to major airports throughout the country. Below is a summary of some of those improvements underway, independent of private sector investment or the future second round concessions, at Confins International Airport in Belo Horizonte and Galeão International Airport in Rio de Janeiro. These improvements also include projects that improve the facilities within the airport, such as replacement of elevators and escalators, and modernization of bathroom facilities and lighting technology within the passenger areas.


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Second Round Concessions Aside from the concession efforts underway, Infraero, the Brazilian government’s airport management entity, has already begun making substantial improvements to major airports throughout the country. Below is a summary of some of those improvements underway, independent of private sector investment or the future second round concessions, at Confins International Airport in Belo Horizonte and Galeão International Airport in Rio de Janeiro. These improvements also include projects that improve the facilities within the airport, such as replacement of elevators and escalators, and modernization of bathroom facilities and lighting technology within the passenger areas. Planned and ongoing investment projects at Infraero-administered airports AIRPORT

ACTION

INVESTMENT UNTIL 2014 (PAC2) – in millions of reais

START FORECAST

COMPLETION FORECAST

Belo Horizonte/Confins

Renewal of PST and road system

236.7

Sep 2011

Dec 2013

Belo Horizonte/Confins

Runway and apron

169.0

Jan 2013

Dec 2013

Belo Horizonte/Confins

PST 3

100.0

Mar 2013

Dec 2013

Rio de Janeiro/Galeão

PST 1 renewal

254.1

Aug 2012

Dec 2013

Rio de Janeiro/Galeão

PST 2 renewal

316.5

Aug 2012

Jul 2014

Rio de Janeiro/Galeão

Runways and apron improvements

103.4

Oct 2011

Oct 2013

Rio de Janeiro/Galeão

Export cargo terminal renewal

23.2

Jun 2013

Mar 2014

Source: Infraero 2012

Guarulhos International Airport, the largest auction, was won by the consortium formed by the Brazilian infrastructure company Invepar and Brazilian construction firm OAS, together a 90% stake, and Airports Company South Africa (ACSA) with a 10% stake. The second round of concessions are planned to be held on October 30th, 2013 as stated by the Secretary of Civil Aviation, Moreira Franco, with specifics on the bid requirements to be released around August 2013. The winners of the previous concessions are ineligible to participate in this round of concessions. The second round concession’s general rules for participation are as follows: The Brazilian government, through Infrarero, will maintain 49% stake while the concessionaire will possess 51% stake.

Each company within the bidding consortium/concessionaire must have at least 25% equity. The concessionaire must have experience terminals that serve at minimum The U.S. Commercial Service –operating Your Global Business Partner. 35 million passengers per year at least once in the last five (5) years. Currently, worldwide airports that meet this

Planned and ongoing investment projects at Infraero-administered airports

criterion include the following airports:

Market Opportunity 2 The Brazilian Civil Aviation Agency (ANAC) is in charge of awarding the concessions of National Plan of Privatization (PND) of the airports. The first round of concessions yielded more than US$ 14 billion and the following bid winners:

Viracopos International Airport concession was won by Aeroportos Brazil consortium, formed by the Brazilian toll road operator Triunfo Participações, the Brazilian engineering company UTC and the French airport operator Egis. Brasilia’s International Airport was won by the InfrAmerica consortium, formed by the Brazilian engineering company ENGEVIX and the Argentine Corporacion America holding company, with a 50% stake each.

Source: Airports Council International Source: Airports Council International 2013 2013

The concessionaire will transfer 5% of annual gross revenue to the Fundo Nacional de Aviação Civil (FNAC) to finance investments in other areas of the airport industry sector. The concessionaire will of transfer of annualauctions gross revenue to the F Participation in only one the two5% concession is permitted; note the auctions will take place simultaneously. (FNAC) to finance investments in other areas of the airport industry

23 Brazilian Texas Magazine 2013

Participation in only one of the two concession auctions is permitte simultaneously.


Brazilian Airport Privatization Second Round Concessions In addition to the investment requirements, Brazilian government stipulates 32 indicators of Quality of Service (IQS) to be provided at the airport i.e. seats available, elevators and escalators, bathroom quality, free internet access, etc. A short term forecast of improvements is an imperative aspect and consideration during the bidding process. More detailed requirements exist for each of the airports to be concessioned; they are as follows:

Internacionais Antônio Carlos Jobim (Galeão), Rio de Janeiro

Tancredo Neves (Confins), Belo Horizonte Confins presently has a maximum passenger capacity of 10.3 million passengers per year. In 2011, 9.5 million passengers travelled through this airport, 92% of capacity. It is forecasted 43 million passengers per year by 2043, the end of the 30 year concessionary period, will travel through Confins International Airport. The bidding requirements for Confins’ concessions are as follows: Concession Period: 30 years (2013 – 2043) Minimal bid contribution: R$ 1.561 billion (US$ 0.7271 billion) Estimated needed investment: R$ 3.5 billion (US$ 1.6302 billion) New terminal construction with minimum of 14 passengers gates (by April 30th, 2016) Additional vehicle parking adequate for increased passengers (by April 30th, 2016) Enlargement of aprons (by April 30th, 2016) Construction of 2nd independent runway (by 2020)

Galeão’s current maximum passenger capacity is 17.4 million passengers per year, the second busiest airport in the country. In 2011, 14.9 million passengers travelled through Galeão, 85.63% of its maximum capacity. With a forecasted 44 million passengers by 2014 for the World Cup, without any additional infrastructure enhancements, Galeão will be 153% over capacity. Moreover, it is forecasted that the annual volume of passengers by 2038, the end of the 25 year concessionary period, will be 60 million passengers per year. The bidding requirements for Galeão concessions are as follows: Concession Period: 25 years (2013 - 2038)

Note: USD amount is based on USD 1/BRL 2.147 exchange rate on June 13th, 2013 To be successful in bidding for public sector procurement opportunities in Brazil, U.S. firms must either be established in the country, or, particularly in the case of airport concessions, partner with a large well established prime contractor that is known in the market. The next Brazilian airport auction bidding documents should be published inAugust on the ANAC website, http://www.anac.gov.br/SalaImprensa.aspx.

Minimal bid contribution: R$ 4.645 billion (US$ 2.1635 billion) Estimated needed investment: R$ 5.2 billion (US$ 2.422 billion) Construction of 26 additional passenger boarding gates (by April 30th, 2016) Construction for at least 1850 vehicles (by end of 2015) Adequate installation of cargo storage facilities (for the 2016 Olympic Games) Enlargement of aprons (by April 30th, 2016) Construction of an independent runway (by 2021)

25 Brazilian Texas Magazine 2013


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The brazilian Texas Magazine December 2013  
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