Cade sees no risk in competing for the Port of Itajaí and the path remains open to large groups

The Administrative Council for the Defense of Competition (Cade) released a note in which it states that there are no competition risks that require prior restrictions for the competition for the Port of Itajaí, located in Santa Catarina.

The document was made at the request of the National Waterway Transport Agency (Antaq), following the recommendation of the Federal Court of Accounts (TCU) not to proceed with the privatization process of the port without consulting Cade.

The analysis seeks to pacify the understanding between Antaq and TCU. While the agency indicates interest in a process without major restrictions, the court saw possible competition risks, with special concern for the victory of large international companies.

Cade discards the risks, pointing out the lack of incentives to close the market. “As well as the low probability of exercising market power resulting from the combination of assets of incumbent companies in the market when they become winners”, says an excerpt from the document.

However, the agency states that the sector will continue to be closely monitored, highlighting care with operational agreements between shipowners to transport each other’s cargo.

“It is understood that strict control mechanisms and that reinforce the repression of anti-competitive conduct must be foreseen in the public notice and in the contracts signed with the lessees”, observes Cade.

Operations at the port are practically at a standstill while the new government decides on the details for the concession. The current promise is that a bidding process will be held for a two-year operation, but there is still no date for this.

Source: UOL

To read the original article, visit: https://economia.uol.com.br/noticias/estadao-conteudo/2023/07/31/cade-nao-ve-risco-em-competicao-pelo-porto-de-itajai-e-caminho-segue-aberto-para-grandes-grupos.htm

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