Codesa’s privatization notice is approved by Antaq

The National Whaterway Transportation Agency (Antaq) approved the public notice for the first port privatization in Brazil, the Companhia Docas do Espirito Santo, on January 14th, 2021.

The concession contract will be in effect for 35 years, with a five-year extension option, and is expected to generate R$ 334.8 million in private investments, as well as R$ 1 billion in operational expenses.

Following Antaq’s clearance, the BNDES will formalize the public notice in the Brazilian Federal Register next week, with the auction set for March at B3, the São Paulo Stock Exchange.

Codesa’s privatization is planned to increase cargo handling at Vitória’s port from 7 million to 14 million tons per year. In the case of the Barra do Riacho port terminal, a spatial extension is envisaged because 522 thousand square meters of the 860 thousand square meters are greenfield. In other words, destined to new projects planned and executed from scratch.

Bidding

The privatization project includes the amount of R$ 327.1 million for the disposition of Codesa’s shares currently held by the State in accordance with the Brazilian Federal Court of Auditors for the sale of the company’s equity value, including unamortized investments. The minimum grant is calculated in the range of R$ 480 million.

Participants will be authorized to engage in consortium bidding with up to 15% of its capital invested individually or 40% collectively. The participation of lessees and private terminals that use the navigation channel of the ports, operating private terminals located in Espírito Santo, and that handle relevant cargo to the Port of Vitória, is prohibited.

The auction will be held in a public session, with sealed envelopes and the provision of bids on speakerphone. The selection criterion for the lessee company will be the one with the highest grant value. The concession will be made with the sale of the equity interest held by the State.

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