Port of Itajaí privatization postponed; municipal management continues

The Port of Itajaí will continue under municipal management for at least two more years due to the government’s impossibility of releasing the privatization notice on time. A delegation from Itajaí, on the north coast of Santa Catarina, traveled to Brasilia to confirm the extension of the current contract.

The Ministry of Infrastructure postponed the privatization notice launch, which will give the municipality control over the port for two more years starting from January 2023. In addition to confirming the extension of the contract, the municipal authorities said they will request adjustments to it and reinforce attempts to strengthen local port activity.

“With the end of the delegation in December of this year, it is essential that we confirm the extension of this agreement between the Federal Government and the Municipality so that we can continue to manage the Port of Itajaí for another two years while the privatization notice is concluded. Furthermore, Itajaí will respond to the request of the Ministry of Infrastructure to guarantee the continuity of port activities and the development of our city, region, and Santa Catarina. Our Port is an essential part of the economy of the State, as well as of Brazil, and cannot be affected by this situation,” stresses the mayor of Itajaí, Volnei Morastoni.

Clause withdraw

Documents to be presented to the National Secretariat of Ports and Waterway Transport position the municipality in favor of renewing the agreement but request the elimination of a resolutive clause that ensures the length of the contract for the following two years with no option to terminate it earlier.

According to the port, this is required to provide security to port operators so they can comfortably maintain operations and search for new lines in the Port of Itajaí during the transition time until the process of the new exploratory model is completed. The exclusion would also avoid issues created by potential logistical instability.

Other documents submitted to the Ministry should reinforce a series of requests, among them the expansion of the port’s administrative area to the BR-101 highway wet area, allowing the municipal authority to manage the access channel;  the delegation of the management of the non-operational regions; and management of the Via Expressa Portuária project.

“The major reason for these demands is to keep the Port-City relationship cordial, as well as to maintain competitive management throughout the whole port chain.” The Port of Itajaí’s Superintendence has already proved its effectiveness in administration over the last 25 years, so much so that we are now the 12th largest city in the country in terms of federal tax collection,” says Fábio da Veiga, the port’s superintendent.

Billions earned in operations

Currently, the Itajaí Port Complex is responsible for more than 70% of Santa Catarina’s trade flow and almost 5% of the national flow (US$ 16 billion per year), in addition to possessing the greater infrastructure capacity for refrigerated cargo in the country.

The complex is also, since 2003, the second in terms of container throughput in the country, behind only the Port of Santos. In addition, port activity has increased the GDP of the municipalities of Itajaí and Navegantes by more than 50%. Furthermore, it is responsible for over 30% of all formal jobs in the geoeconomic regions of Santa Catarina.

See below the main export and import trends in terms of TEUs registered at the Port of Itajaí from January 2021 to May 2022. The data below was gathered from Datamar’s business intelligence team through the platform DataLiner.

Exports and Imports at the Port of Itajai | Jan 2021 – May 2022 | TEUs

Source: DataLiner (click here to request a demo)

Delegation agreement of the Port of Itajaí

The agreement for the delegation of the Port of Itajaí to the municipality ends on December 31, 2022. Since 2017, the city has made numerous requests for an extension for another 25 years. However, a public notice for privatization of the port of Itajaí began to be prepared by the Ministry of Infrastructure, despite requests for maintenance from the Public and Municipal Port Authority.

However, the public notice, scheduled to be released later this year, was postponed, and the municipal management will be renewed for the next two years, that is, until December 2024.

Source: ND Mais

To read the full original article, please go to: https://ndmais.com.br/infraestrutura/privatizacao-do-porto-de-itajai-e-adiada-e-gestao-municipal-deve-continuar-por-mais-dois-anos/

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