Infrastructure Sector: Engineering for Structural Projects in Brazil

Interview with Fares Eduardo Assali, Director-President of Fares & Associados Engenharia

What is your assessment of the engineering sector in Brazil in terms of structural projects?

The engineering sector is a specific sector. In Brazil there are few companies doing the same thing as we are. We work on huge structural projects like, for example, bridges, viaducts, airports, harbors and structural recovery.

We do not need to publicize the company’s name, because it’s very well known within the engineering sector, so the people that hire us already know us due to our curricula and to the services we already supplied in the past.

At the national level, there are around 30 companies like ours and just in Sao Paulo, there are (maybe) 10.

Could you tell us a little bit about the company’s history?

Two minority partners from a company that does not exist anymore founded Fares & Associados in 1982. That was a time of crises for the engineering sector. We were already known in the market, we had an extensive curricula and thus it was very easy for us to enter the market with a new company. In 1982 and 1983 the engineering sector came to a halt with many civil engineers becoming entrepreneurs in other areas.

We started growing when engineering started working again in the area (governmental projects). We have been growing each year that passed since, and nowadays we can say we have reached a very high point in terms of our growth.

In terms of numbers, what exactly is the company’s situation?

We have 22 employees and our annual turnover is around 5 million Brazilian Reals When considering the projects).

How would you define the company’s philosophy, and what are your competitive advantages?

Public tenders are all about the right technique and price. You have to present a project that is technically superior to the projects of the competition. What gives us a competitive advantage is our experience and the certificates we have obtained.

For a company to enter this niche it has to have the certificates and those are indeed hard to get. That is why I said we do not need to market our name, because our experience speaks for ourselves.

Could you please mention some success cases and some projects you worked on, which define Fares & Associados?

I can mention the enlargement of the navigation channels and stay-cable construction projects. We have just finished two major stay-cable constructions – we are experts in those kind of construction projects.

What about your current projects?

We are inspecting the entire Sao Paulo underground train system as part of our 3-year contract. A part of this contract consists on increasing the load capacity of the elevated parts to sustain the new subway trains weight and the extra weight resulting from an increase in the number of people using this particular way of transport in Sao Paulo.

We also have a huge project, the SP-191 near Piracicaba, to build a 172 meters wide lattice.

We have been also working a lot on the widening of roads with increased load capacity.

Which are the company’s plans in terms of expansion?

Our growth capacity is restrained, because this is a restricted niche. We are trying to invest in supervision, technical support and construction implementation.

What challenges do you have to face on a daily basis?

Challenges are a constant element. Brazil is growing at an accelerated pace and a lot is asked from the companies working in this niche. We are asked to be fast because, in many cases, the client is already building and we are doing the project at the same time and informing our client about what he has to do on-site. We are under pressure because the construction cannot come to a halt.

We are always equipping our office with the best hardware, software and other technologies to meet our clients’ needs.

Another challenge is the labor’s lack of quality. Sometimes they make huge mistakes in constructions and we have to go running to correct other people’s mistakes.

Are there any investment opportunities inside the company? Are you interested in any type of partnership?

We have an interest in partnerships and we are already taking care of it. There are many people coming into Brazil, mainly from Portugal, Spain and Italy, and we have been creating partnerships with them. Whenever we have a lot of work, we outsource some work to them and they have the required technical expertise.

What is your vision for the sector in 5 years?

Government concessions are going to be maintained and even grow with the construction of roads, railways, waterways, airports, harbors, etc.

Brazil has a lot of growth potential and I believe Brazil has everything to grow further.

What are your expectations for the company in two years from now?

I want tomorrow to be the same as today and the same as yesterday, because it is good as it is right now.

If two years from now we are like we are today, then we will be doing very well.

What would be your message to a foreign investor that wishes to come to Brazil and work within the engineering sector?

First, they would need to create a partnership with a Brazilian office. You have to be recognized by CREA, you have to get certificates that are recognized in Brazil. Therefore, it is very important that whoever comes makes a partnership or enters a society already present here.

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