TCU decision on Port of Santos harms federal concession plan

Terminal concessions and port privatizations planned by Minister Tarcísio de Freitas (Secretary of Infrastructure) run the risk of losing strength if he fails to prove to the Federal Audit Court the advantage of terminating old sector contracts that began to expire and will not be extended.

The impasse has already created doubts in the privatization plan for the port of Santos, where Marimex, a company that stores containers, is located.

At the heart of the dispute is a decision given by the federal audit court plenary that forced the ministry to extend Marimex’s contract until the Secretary presents the details of the new occupation plan for the port area.

This forced extension sets a precedent for the federal audit court to overturn any other similar decision by the Secretary. Therefore, the government will file an appeal before going to court.

In the case of Marimex, the contract expired in early May 2020, and it was not renewed because the government and Santos Port Authority (SPA), jointly responsible for managing the port, decided to build railway lines in a section that houses company warehouses.

The ministry argues that the only alternative to house the enterprise would be to remove the company. The port also plans to build a new terminal in the area.

According to the government, the railway complex will be essential for the flow of cargo, which is currently at its limit. The portfolio’s projections indicate that with this new construction, traffic should double by 2040 — and only because they will be solving the logistical bottleneck.

The government proposed a transition contract for Marimex. However, the company refused and went to court to obtain an extension of the old contract.

Source: Folha de São Paulo

To read the full original article, access the link below:

https://www1.folha.uol.com.br/mercado/2021/05/decisao-do-tcu-sobre-porto-de-santos-prejudica-plano-de-concessao-federal.shtml

Sharing is caring!