Codesp considers seven emergency dredging offers

Santos Port Authority (Codesp) has acknowledged receiving seven proposals, of which two are from different consortia, to conduct emergency dredging to maintain the channel depth at the port of Santos. The deadline for submitting offers expired last Friday. Codesp consulted with 12 prospective companies for the emergency dredging work however only seven of them sent proposals. The proposals which are approved technically will be evaluated considering cost as well as time required to bring dredging equipment to the port.

The dredging work at Santos which had been carried out by Van Oord Maritime Operations and Boskalis do Brasil, was completed in the second week of April as planned in the original dredging contract. Codesp assured that the existing margin of safety will ensure safe maneuverability of vessels while a new company is contracted to carry out emergency dredging.

In addition to the emergency dredging auction, Codesp is preparing a licitation for a two or three-year dredging contract to guarantee the long term maintenance of the channel depth. However, the contract might come with a caveat; a rescission clause to be applied if the Federal Government approves the privatization of the dredging concession. Codesp has also stipulated that emergency dredging will only be carried out if there is a risk of losing operational draft before the long term dredging starts.

Santos Port Authority (Codesp) is currently studying which services at the port facility may be privatized. The plan is to privatize particular services rather than the whole port. The services that Codesp is considering privatizing include navigation channel management, dredging, and management of land access to the port.

Codesp is also planning for an initial public offering (IPO). As reported by DatamarNews, preparation for the IPO by Codesp will involve an internal restructuring of the company as well as a series of concessions of port areas. The public offering is likely to take place in three years.

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