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Scenario
and Strategy
THE DISCOVERY OF PETROLEUM RESERVES IN THE PRE-SALT LAYER WILL INCREASE THE VOLUME OF BUSINESS ACROSS A LARGE PART OF THE COUNTRY'S COASTAL REGION, PARTICULARLY IN THE STATE OF SÃO PAULO, WHERE THERE WILL BE A PRONOUNCED DEMAND FOR INVESTMENTS IN LOGISTICS INFRASTRUCTURE. ECORODOVIAS IS ATTENTIVE TO THIS.
2010 got underway showing marked growth in Brazil and the economic expectations for 2011 are positive. Petroleum exploration in the pre-salt layer will lead to an increase in Brazil's demand for infrastructure, which will require investments; EcoRodovias is well placed as an important player in this scenario. There are a total of 3,891 airports in Brazil, along with 121 ports and private terminals. The annual amount of cargo handled at Brazilian ports comes to a total figure of 732.9 million tons, while Brazil's highway network adds up to a total of 1,721,137 kilometers. EcoRodovias has a long-term strategic plan, and an organizational structure characterized by transparent management. The Ecopátio Cubatão supported the group to achieve an outstanding position. As part of its business activities the group invests in profitable concessions and logistics terminals and always assesses opportunities to expand logistics of its operations. 48% of the cargo that is handled in Brazil travels along EcoRodovias' links to the Ports, of São Sebastião, Santos, Paranaguá and Rio Grande and the Triple Frontier – Brazil, Argentina and Paraguay.
Ecocataratas is one of Latin America's major entry and exit points and a route for the outflow of agricultural produce. The company is making improvements in infrastructure, with logisticsal solution that eliminate bottlenecks, integrate retroport terminals and distribution centers. THE COMPANY EMPLOYS NEW TECHNOLOGIES IN THE MAINTENANCE OF HIGHWAYS, SUCH AS THE ECOLOGICAL ASPHALT. ALL CONCESSIONS HAVE BEEN GRANTED THE ISO 14001 CERTIFICATION, FOR REGARDING ENVIRONMENTAL PERFORMANCE. THE GROUP ADOPTS A BUSINESS PROCESS MANAGEMENT BUSINESS PROCESS MANAGEMENT BALANCED SCORECARD (BSC) METHODOLOGY, A TECHNOLOGICAL PLATFORM THAT FACILITATES MANAGEMENT OF STRATEGIES, AS WELL AS ECONOMIC VALUE ADDED (EVA), AN INDICATOR THAT MEASURES THE COMPANY'S CREATION OF VALUE.


IN A SCENARIO OF ECONOMIC GROWTH FOR BRAZIL AND ACTIVITIES THAT REQUIRE EXPANSION AND INVESTMENTS, THE STRATEGY OF ECORODOVIAS GROUP INCLUDES COOPERATION WITH THE PUBLIC SECTOR IN ORDER TO OBTAIN PROFITABLE BUSINESS.

In the past years, Brazil showed progress in the macroeconomic field. Despite the international crisis of 2008, the image of the Country in the global scenario remained positive and was subsequently confirmed by oil findings in the pre-salt layer; exploration in the Santos Basin brought a different type of economic activity to the coast of the State of São Paulo based on the creation of new forms of logistics support to oil companies, thus increasing business demand.

In order to meet the demands generated by the economic growth, it will be necessary to expand port and airport facilities. As a result, the Country will need to invest in logistics infrastructure. Given that public sector funds are not sufficient to invest in such actions, more opportunities will arise for the private sector.

Chapter 2 of EcoRodovias' 2010 Annual and Sustainability Report will consider this scenario by quoting relevant figures relating to the industry and showing relevant information about the Group's operational strategies.

As part of this strategy, EcoRodovias' systems are implemented in important tourism and foreign trade corridors in Brazil, next to major trade and industry centers and ports, which are seen as economically feasible regions for generating a high flow of vehicles, passengers and cargo.

As part of the Anchieta-Imigrantes System, Ecopátio Cubatão is the largest intermodal cargo terminal in the Country, and it is raising the Company to an outstanding position on the market by eliminating bottlenecks and integrating the activities between retroport terminals and distribution centers. This system allows cost reduction for users and increased earnings for the Company.

By using corporate management tools such as "Business management by processes," the system ensures the Company's procedures are carried out in an efficient way, lowering costs and allowing improvements. As a complement for this tool, it adopts the Economic Value Added® indicator (EVA®), which enables the assessment of alternatives for capital and investment structures, in addition to contributing to the alignment of the managers' view on decision making, based on the generation of wealth.

The Company's commitment to environmental aspects is also demonstrated by investments in maintenance of preserved areas and development of new ecologic technologies to improve highway maintenance activities. The Company is equally concerned about social practices, holding programs and actions that contribute to improved quality of life for communities in the States where it is located.