Turner & Townsend’s blueprint for Latin American growth

By: Rogerio Jelmayer

Global professional services company Turner & Townsend has positioned itself to meet the demands of various sectors in most countries across Latin America.

Luis Del Cistia, infrastructure, energy and natural resources director at Turner & Townsend Brazil, speaks to BNamericas in this email interview about the company's strategies, the drivers for growth in activity and the challenges that lie ahead.

BNamericas: How is Turner & Townsend positioned in Brazil and Latin America to meet the demands of clients in the region and to generate new business?

Del Cistia: Turner & Townsend is a global professional services firm with over 75 years of operational expertise and a recognized leader in managing megaprojects. Our journey in Latin America began 35 years ago in Chile and has since expanded to include Brazil, Mexico, Colombia, Argentina, Peru and Uruguay.

In the past three years, we have seen significant growth in Brazil engaging in various sectors, including infrastructure, airports, ports, railways, highways, sanitation, energy and natural resources. Our primary focus is on managing major projects utilizing digital technology and tools to ensure optimal performance with a clear commitment to contributing to the reduction of carbon emissions.

Our full portfolio of services includes capex and opex preparation and review, cost management, PMO, project and program management, contract and claims management, procurement, project planning and control, risk analysis and management.

BNamericas: From which business segments do you expect the most demand currently?

Del Cistia: The Latin American market is predominantly commodity-driven, with mining, oil and gas companies serving as major investors in the infrastructure sector. We expect to see a surge in infrastructure investment across Peru, Chile, Colombia, Mexico and Brazil by 2025.?

To enable us to flex to our clients’ needs and facilitate efficient integration, our strategy is to locate where our clients need us most. As a result, we have recently expanded our presence by opening new offices in Belém, S?o Luís and Vitória, bringing our total to six in Brazil, including S?o Paulo, Rio de Janeiro and Belo Horizonte.

BNamericas: Considering the countries in the region, where do you see the greatest potential for growth in operations?

Del Cistia: Brazil and Mexico are the current engine room of the Latin American economy, tailed by Chile, Colombia, Peru and Uruguay. We anticipate that Argentina will recover its economic status and regain its position as a powerhouse in South America, supported by its educational infrastructure and skilled workforce.

Colombia is also one to watch, with exciting investment plans for the coming year, according to the Colombian national planning department (DNP), particularly in subways, airports and ports, with El Dorado airport being a standout project.

In Brazil, Vale, a national institution, is now under new management and is expected to reclaim its prominent market position, including involvement in significant global projects. Aena plays a vital role in aviation for both Brazil and Mexico, and we currently have the opportunity to support their initiatives in Brazil.

Grupo Cosan is solidifying its status as a major national investor across various sectors, including renewable energy, railways and natural gas. Additionally, companies like Brookfield are making significant contributions to the Latin American market across multiple sectors, such as railways, highways, energy and sanitation.

BNamericas: How do you see the current business environment – the main opportunities, the biggest risks – in Brazil and Latin America, compared with other regions of the world?

Del Cistia: The risks are consistent across the region. Brazil, in particular, has struggled with the management of its public finances and expenditure, leading to expectations of rising inflation if spending is not curtailed. Furthermore, ongoing geopolitical conflicts between Israel and Iran, and Russia and Ukraine create ongoing global uncertainty, which has economic knock-on effects.

In contrast to other Latin American countries, Brazil has shifted away from its neutral political stance, which introduces elevated risks for the nation.

We anticipate that the Argentine economy will continue its recovery, while Chile, Colombia and Uruguay maintain their current growth trajectories. Additionally, Mexico shows promising potential for attracting investment from the US in the coming years, a trend that is already underway.

BNamericas: Of the sectors in which Turner & Townsend operates now, what are the main challenges for developing projects?

Del Cistia:?Certain sectors, particularly energy, require regulatory frameworks to be modernized. While this challenge affects all industries, we believe that the energy sector deserves heightened attention.

Privatization in Brazil has produced positive outcomes, and we are optimistic about the development of Sabesp, the recently privatized sanitation company in the state of S?o Paulo. Public-private partnerships (PPPs) remain an effective mechanism for advancing mega capital projects, fostering productive collaboration between the public and private sectors.

However, we still observe a lack of maturity in the Latin American market when it comes to collaboration. Companies often prioritize their individual interests over collective project success.?

In Brazil, we have been actively promoting collaborative contracts, leveraging our global expertise to facilitate engagement among competitors, partners and clients through roundtables and events.?

Our aim is to cultivate an environment where all parties can set aside their individual economic objectives in favor of the collective benefit of the project, thereby enhancing integration and performance.

BNamericas: Specifically talking about the mining sector. What does the company do now and how does the growing interest of mining firms and new investors in so-called critical minerals impact the solutions you offer for projects in this area?

Del Cistia:?At Turner & Townsend, we are dedicated to supporting our clients in their journey towards energy transition. We operate globally, assisting leading mining companies with large-scale projects by offering a comprehensive range of services, including capex review, capex assurance, cost management, procurement, PMO, project and program management, project controls, contract management and anti-claims.

In Latin America, we are actively engaged in the mining sector in Chile, Brazil, Colombia and Peru, delivering the same high-quality services while facilitating the exchange of experiences and lessons learned from our 75+ years of expertise.

Our local professionals possess deep market knowledge and the ability to integrate insights from global projects into local contexts, while also incorporating local knowledge and lessons learned into our international endeavors.

BNamericas: Regarding the infrastructure sector in Brazil and Latin America, what are the main growth frontiers in your view and how is Turner & Townsend positioned to meet the demands of this sector?

Del Cistia: Technology continues to grow at an exponential rate and there is no sign of this abating. Just a few weeks ago, we witnessed a rocket launch into space, with its boosters successfully returning to the base and landing precisely at the launch site. As life becomes increasingly digital, artificial intelligence is becoming more integrated into both business operations and personal lives.

We believe that processes can always be enhanced, and we have made significant strides to achieve a commendable level of maturity while advancing our digital capability. As a business, we want to empower individuals to reduce the time spent on routine manual tasks in favor of creative and critical thinking to continually improve project performance. ?

A notable example is QuanTTum, developed by Turner & Townsend, our digital cost and commercial performance tool that utilizes leading technology with strong predictive controls and structured methods to drive improved performance within complex projects across the energy and natural resources sectors. It ensures that project quantities, measurements and costs are accurately assessed.

QuanTTum leverages cutting-edge technology to observe, analyze and report on project progress. As the design evolves, changes are color-coded and visually represented on the digital model, allowing for effective management of the cost and schedule implications associated with changes in quantities and scope. This saves time in analysis and enables early decision-making with confidence.

We believe that collaboration is essential for fostering a greener, more inclusive world, enabling projects and programs to achieve higher productivity. This vision is supported by well-trained, motivated individuals working alongside mature processes, lessons learned and advanced technologies.