Arabs and Chinese are keeping a close eye on the port of Itajaí

Following the statement of Diogo Piloni, the national secretary of ports, that the privatization of the port of Itajaí is irreversible and would take effect later this year, speculation has grown as to who should explore the port for the next 35 years. The most natural outcome would be a conflict between Maersk (who has operated a container terminal there through its subsidiary APM terminals for over 20 years) and MSC (parent company of Portonave).

However, one of the rules laid down by the National Secretariat of Ports prohibits companies operating in large terminals nearby from joining any consortium to compete in the auction. The National Waterway Transportation Agency (Antaq) set the rule to avoid monopolies in the industry.

With this restriction, and the high volume of investments, which should reach almost R$ 3 billion in the next 35 years, other names appear among possible investors. Among them are the Chinese and Arabs, who are ready for action and have vital commercial interests in exploring Brazilian ports.

See below the track record of imports and exports via Port of Itajaí registered from January 2021 to February 2022. The data are from DataLiner.

Exports and Imports via Port of Itajaí | jan 21 – feb 22 | TEU

Source: DataLiner (click here to request a demo)

Experts in the maritime and shipping industries believe that the DP World group, a logistics multinational headquartered in Dubai, United Arab Emirates, could be a potential investor. The company specializes in cargo logistics, port terminal operations, maritime services, and free trade zones. It imports a huge amount of Brazilian products (mainly poultry) and already maintains a private terminal in Santos.

COSCO Shipping Corporation Limited, based in Shanghai, is another well-known name in the market. It was formed by the merger of two state-owned shipping businesses, COSCO and China Shipping Group. According to the analysts, the Chinese candidate may have a strategic bias (attaining food security) and construct a cluster to support Chinese imports. In reality, the Chinese business recently invested in the Port of Piraeus in Greece, transforming it from a secondary port in Europe to one of the continent’s primary ports.

Another factor justifying these major investors’ interest in the privatization of the port of Itajaí is that both are developing in the sector and have a strategic interest in the operation of ports in Brazil.

Source: Diarinho

To read the full original article, please go to:

https://diarinho.net/materia/634539/Arabes-e-chineses-estao-de-olho-no-Porto-de-Itajai

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