Brazilian Supreme Courts give two years for dry ports to adapt to concession terms

The Brazilian Supreme Court (STF) has granted two years for dry port concessionaires to comply with the understanding that the maximum concession period is 25 years, with a possible extension of an additional 10 years. The STF also clarified that Public Administration may organize bidding processes with contract terms shorter than those provided by law.

This decision refutes the Attorney General’s Office’s interpretation, which held that the law permitted an automatic extension of existing contracts for an extra 25 years plus another 10 years. Concessionaires who only have operating authorization are not eligible to extend their contracts as the Court only permitted the extension of license or concession agreements that were subject to bidding.

The winning interpretation was signed by Minister Dias Toffoli, with support from Ministers Gilmar Mendes, Luiz Fux, Luís Roberto Barroso, and Nunes Marques.

The trial began in a virtual session in 2022, but the result was only announced on Thursday (June 13) by President Barroso. Due to the even split in votes in the virtual debate (5 to 5) and Minister Alexandre de Moraes abstaining, no majority was initially formed.

Ministers Edson Fachin and Marco Aurélio had differing views. Fachin contended that the legislation enabling concession extensions was unconstitutional because it allowed private businesses to run customs services in dry ports for an extended length of time without providing adequate justification, including by extending contracts that were awarded without a public bidding process. Fachin’s position was supported by Ministers Cármen Lúcia, Rosa Weber, and the retired Ricardo Lewandowski. Retired politician Marco Aurélio cast a vote to dismiss the case.

The case was filed by the Attorney General’s Office (PGR), which claimed that provisions of Law 10,684/2003 were unconstitutional as they allowed the extension of concessions without bidding, violating principles of morality and reasonableness due to the 35 years foreseen for dry port concessions, regardless of a bidding process.

Source: Valor Econômico
Click here to read the original news text: https://valor.globo.com/brasil/noticia/2024/06/13/stf-fixa-dois-anos-para-que-concessoes-de-portos-secos-se-adaptem-a-prazos-legais.ghtml

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