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BPMAGAZINE
SWEET
38 SPOTLIGHT: BUSINESS IN BRAZIL
HARVEST
With strong positions in jet fuels and lubricants
and a growing biofuels business, BP’s Brazilian
business is reaping rewards. BP Magazine reports
from the South American country.
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BRAZIL THE
UNDISCOVERED
COUNTRY
GUYANA 10
VENEZUELA SURINAME
FRENCH
NORTH
GUIANA ATLANTIC
COLOMBIA
OCEAN
Amazon River
0
Belem
Manaus Fortaleza
Recife
BRAZIL
Salvador 10
PERU
BRASILIA
BOLIVIA Campo
Grande
São
Paulo Rio de
20
PARAGUAY
CHILE Janeiro
Porto
ARGENTINA Alegre
SOUTH
AREA
ENLARGED
ATLANTIC 30
URUGUAY OCEAN
km 500 1000 50 40 30
10
20
30
S
ão Paulo, the most populous city in with specifications targeting a suite of visit the school where BP sponsors
Brazil, is home to BP’s lubricants vehicles, from small flex-fuel cars to large language courses in English, Spanish and
business and Air BP offices, and cargo trucks. The Castrol brand also serves French. Just as extraordinary is the
serves as the global development centre for Brazil’s growing automotive recently opened museum of Maré history
BP’s premiere venture into biofuels, using manufacturing, metalurgy and machinery and local works of art. One of the CEASM
sugar cane rather than corn. Sampa, as it is manufacturing industries. BP Lubricants’ founders explains why he built the
commonly called by locals, is a Industrial Lubricants & Services (ILS) museum: “The people like to express
cosmopolitan city with an expanding division also works closely with the themselves through art to tell a story or
middle-class economy and evolving small- mining industry – Brazil’s iron ore exports reflect the place where they live. I
business sector. Portuguese, the national generate around $2 billion in annual wanted to give them a place to exhibit
language, is often the only one travellers revenue – and sugar mills. As of 2007, their art and possibly motivate others to
encounter outside of their hotels. Brazil is the world’s largest producer of take part.”
The southeast region, where Rio and São sugar cane. »
44 Issue 1 2009 BP MAGAZINE
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Brazil> Favelas
Castrol lubricants are produced and of Brazil. “After a few months, the positive says Marcelo Soares, operations manager.
packaged at a plant on the outskirts of Rio. impact of the programme is evident in the The first new aviation fuelling company in
Demand for the products is high, and numbers,” says Garcia-Ramos and Cardozo. Brazil in 50 years, Air BP has brought
output is closely managed by Salim Abi Air travel within Brazil and from around innovative ideas and proven safety
Saab. “Because of this demand, the plant the world is on the rise. The country’s 67 measures for fuelling planes accurately.
operates flat out. Unscheduled downtime is airports are operated by the government This is evident in the fact that Brazil’s
an unacceptable risk, as are poor safety entity Infraero, which is dedicated to government is currently assessing Air BP’s
habits,” Abi Saab explains. “We have a meeting the demand and improving safety procedures and is planning on
rigorous production schedule and an flight safety. making its ‘no decal no fuel’ policy a law
intricate arrangement for truck arrivals, in the country.
T
loading and departures. Safety is managed ourism is a major growth area, with “Brazil’s jet fuels market has grown 8.1%
with a firm hand for employees and investors opening more resorts and and 7.7%, respectively in 2007 and 2008.
shippers alike. It is a key feature in our hotels on exquisite beaches and After completing construction of the
ability to maintain the customers’ close to areas of hard-to-access natural Rio de Janeiro International Airport
expectations of quality and delivery.” Back beauty, which had previously required terminal and the pipeline to access local
in São Paulo, Mauricio Garcia-Ramos and visitors to stay in small campsites. ‘Build it fuel supply in May 2008, Air BP Brazil has
Carlos Cardozo, the heads of automotive and they will come’ as the old saying goes, established a solid foundation for business
and industrial lubricants, recently and so it is in Brazil. Air BP, imbued with a growth”, says Ricardo Paganini, Air BP
implemented a new marketing programme passion and process for safety and Brazil country manager.
that makes efficient use of distributors to efficiency, is establishing itself as the The safety philosophy and procedures
increase product sales throughout the aviation fuelling company recognised as align with the objectives of Infraero: to put
sprawling and sparsely populated regions having the safest operation in the country,” in place a safe, efficient fuelling process in
“Safety is managed with a firm hand Safe hands: Castrol has had a
presence in Brazil since the 1950s
for employees and shippers alike. It and prides itself on its safety record.
Above, the view over Rio de Janeiro is
is a key feature in our ability to a spectacular sight.
order to prepare for the anticipated industry organisation UNICA, and “Given today’s petroleum
increase in air traffic. Tourism is a big part continues to show big growth. With two
of the growth, but business travel is on the harvests per year, sugar cane is plentiful in price volatility and the
rise as well. Visiting the Brazilian Brazil, and studies show that there is global interest in
Consulate in Houston, I discover that enough arable land available to support
applications for business visas to Brazil production of biofuels without having an
reducing dependency on
have grown at a remarkable rate over the impact on land for food crops, or sensitive hydrocarbon fuel, our
past 18 months. Whether tourism or areas such as rainforests. Brazil is far ahead joint venture, Tropical
business is attracting people to Brazil, the of most countries in providing fossil and
hidden potential is building momentum. biofuels to consumers; 90% of the vehicles Bioenergia, gives BP a
Paulo Pinho, head of BP’s biofuels venture are flex-fuel, so the driver can switch fuels position in the growing
in the country, sees the opportunity in whenever the prices change. “Increasing
Brazil as far-reaching. capacity for making sugar cane ethanol, as sugar cane ethanol
“Given today’s petroleum price we plan to do at Tropical, creates more industry in Brazil.”
volatility and the global interest in opportunity for exporting to consumers
reducing dependency on hydrocarbon fuel, who want the choice.” Paulo Pinho
our joint venture, Tropical Bioenergia, Discovering Brazil is a trip more and
gives BP a position in the growing sugar more people and businesses are taking, and
cane ethanol industry in Brazil,” says Pinho. the prize is a gold mine of fortune and
And Brazil is the place for this business, prosperity from every direction. The
producing around 22 billion litres of sugar undiscovered country is about to burst
cane ethanol per year, according to its onto the world’s radar. ■