ANTAQ approves analysis of CODESA privatization contributions

ANTAQ has approved the analysis of public hearing contributions related to the bidding process as well as technical and legal documentation for the concession of the ports of Vitória and Barra do Riacho.  ANTAQ also approved the privatization of Companhia Docas do Espírito Santo (CODESA). These approvals were published in the Federal Register on April 6.

Now, the Agency will forward the records to the Ministry of Infrastructure to continue the privatization process. ANTAQ’s Permanent Port Leasing Bidding Committee (CPLA) will consolidate the relevant documents and take the subsequent steps. According to the project schedule, the notice will be published in September. The auction of the concession’s assets should be held before the end of the year.

The concessions begin a new management model and the transfer of the port operation to the private sector. “I am sure that this new model – successfully adopted at our airports and which now reaches the port sector – will also bring a new dynamism to Brazilian organized ports. This will improve services at these facilities,” stressed the CEO of ANTAQ,  Eduardo Nery.

The institutional model presented by the Brazilian Development Bank (BNDES), the institution responsible for the studies, provides for the concession of the ports of Vitória and Barra do Riacho for 35 years, and another five years if additional investment is needed. In return for taking over the operation throughout the term of the contract, the private sector will pay the public sector a grant amount at the time of the auction and another variable grant of 7.5% of revenue.

Concerning total investments over the 35 years of the contract, it is estimated that the funds will reach R $ 1.3 billion. The minimum mandatory investments at the beginning of the contract alone total R$ 355 million.

In the Port of Vitória, the potential is to double cargo handling from 7 million tons to 14 million tons/year. There are 500,000 square meters and 14 mooring berths, a large part of which is currently operated by the port authority.

Handling growth up to the end of the Port of Vitória contract term is estimated to increase by 80% for solid mineral bulk cargoes, reaching 6.5 million tons/year at the end of 35 years. This growth is driven by pig iron and fertilizers; containers that grew 115% to reach 500,000 TEU/year; and liquid bulk, which grew 115% to reach 7 million tons/year.

The following graph shows cargo handling at the Port of Vitória since 2017:

Brazilian Imports and Exports from the Port of Vitória | Jan 2017 to Feb 2020 | WTMT

Graph source: DataLiner (To request a DataLiner demo click here)

With a current turnover of eight million tons/year, the Port of Barra do Riacho provides ample opportunities for exploring new areas. Of the 860,000 square meters of the total area available, 522,000 square meters are greenfield (without previous construction). The port has two berths dedicated liquid bulk, and land access is by rail pear (Vitória-Minas) and the BR-101.

“The privatizations of the ports of Vitória and Barra do Riacho and CODESA seek to expand investments in infrastructure through partnerships with the private sector and aim to modernize port management, attract investments, and improve the sector’s operations. I have no doubt that this objective will be achieved and will serve as a model for future projects of the same size”, highlighted the ANTAQ Director Adalberto Tokarski.

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