Ports and Terminals

Lula and Tarcísio set differences aside in new tunnel project agreement

Jan, 31, 2024 Posted by Gabriel Malheiros

Week 202405

Chief of Staff Rui Costa confirmed on Tuesday afternoon (30) that the Brazilian federal government, along with the São Paulo state authorities, will close an agreement for the construction of a tunnel between Santos and Guarujá. According to the officeholder, the official announcement is scheduled for this Friday (2), when President Luiz Inácio Lula da Silva will visit the region.

The forthcoming tunnel was discussed at length in a meeting held on Tuesday, which involved Lula himself, São Paulo Governor Tarcísio de Freitas, and Ministers Rui Costa and Silvio Costa Filho (Ports and Airports). Costa was the first to comment on the upcoming announcement while calling attention to the federal government’s effort to form partnerships with state governors regardless of their “party affiliation.”

Tarcísio traveled to Brasilia to negotiate São Paulo’s participation in the project. His administration raised concerns about the subject when he learned that the Lula government had scheduled an event to present the project to the public. The Santos-Guarujá tunnel promises to relieve congestion at the Port of Santos, one of the country’s most important ports. It is expected that Lula will go to the coast in the coming days and officially launch the start of the tunnel construction.

The chart below provides a comparison between container exports and imports through the Port of Santos between January 2019 and November 2023. The data provided below is from the DataLiner data service.

Exports & Imports at Santos Port | Jan 2019 – Nov 2023 | TEU

Source: DataLiner (click here to request a demo)

As a supporter of former President Jair Bolsonaro, Tarcísio had been excluded from the negotiations and, therefore, would not be able to include the project in the list of accomplishments of his administration. However, with this deal inked between the São Paulo government and the federal government, São Paulo will likely become one of the forces behind the project.

Until now, the expectation was that the project would be financed only with federal funds, i.e., through the “new PAC,” as the new version of the Growth Acceleration Program is known.

Source: Valor Econômico; translation by DatamarNews

Click here to visit the original publication: https://valor.globo.com/politica/noticia/2024/01/30/governo-lula-e-tarcisio-farao-acordo-para-construcao-do-tunel-entre-santos-e-guaruja-diz-ministro.ghtml

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