Brazil’s Antaq suspends Port of Itajaí stopgap leasings

Brazil’s National Waterway Transportation Agency (Antaq) ruled to suspend the two stopgap selection processes pushed forward by the superintendence of the Port of Itajaí, aiming to hire new terminal operators. With Antaq’s decision, the procedures to appoint a lessee for berths 1 and 2 – currently occupied by APM Terminals – and public berths 3 and 4, where general cargo and pulp operations occur, have been suspended.

The port has 15 days to provide Antaq with information regarding Ctil Logstica’s operational and technical capabilities.

Due to the lease agreement with APM ending at the end of this year, the Superintendence of the Port of Itajaí had launched a simplified stopgap selection process for hiring a new temporary lessee. The company Ctil was the tender winner and was supposed to take over the operations from 2023, but APM filed a complaint with Antaq, trying to reverse the process.

On September 29, a regular meeting of the board of Antaq analyzed the objection and ruled on the impasse. The agency decided to suspend the simplified selection process for exploring the area of berths 1 and 2 until the race for the total privatization of the port is given the green light by the federal government.

The agency argued that not doing so would go against the public interest. According to Eduardo Nery, general director of Antaq, “The outcome of the bidding process will inform how the transition contract should be designed. If this bidding process does not meet the requirements established for executing a transition contract, I think that this agency’s action is very prudent to protect and suspend the process at this time.”

Nery claims that important issues in the transition agreement need to be probed. “One of them is the demonstration that the future contractor will be able to maintain the existing operational capacity, not only to move the cargo at the pier but also to have commercial conditions to attract cargo and maintain at least a minimal throughput, which meets the requirements demands of such an important port. Other issues also need to be demonstrated, such as customs issues,” he argued.

See below the track record of exports and imports of containers at the Port of Itajai between January 2019 and August 2022, according to data by DataLiner.

Port of Itajai | Exports vs Imports | Jan 2019 – Aug 2022 | TEUS

Source: DataLiner (click here to request a demo)

Antaq opened a period of 15 calendar days for the Port Authority to respond to the questions raised by the agency. To proceed with the selection process, Antaq wants the port to prove the continuity of cargo handling operations in Itajaí.

“The agency’s goal is to avoid any legal uncertainty that might arise regarding the continuation of operations in that area. Some of these will have to be assessed by the superintendence now. We recognize the efforts made by the Superintendence of Itajaí but, for the sake of safeguarding the continuity of operations there, we cannot analyze revenue gains alone,” commented Nery.

Port to present requested info

According to the superintendent of the Port of Itajaí, Fábio da Veiga, the process was suspended by Antaq so the port authority may demonstrate the technical and operational capacity of Ctill Logística, winner of the simplified process, to operate the pier in Itajai.

“They suspended the process and gave us 15 days to provide information on Ctill’s operational capability. We are working on it. We will present the CVs of employees and service providers, an operational plan, and past contracts signed by them listing the equipment they need to bring to the operation. In addition to possible suppliers and contracts with shipowners,” said Fábio.

The superintendent clarified that the 15-day window will not start to run until he receives the documentation sent by Antaq in person on October 3 or 4. “It goes without saying that I am optimistic about the process’s continuation. Antaq would have already decided to void the process if there were any obvious formal mistakes or illegalities in it. It has no formal flaws. Antaq’s primary concern is whether the company has the resources to manage the operation,” he explained.

After receiving the port’s response, Antaq will scrutinize the temporary leasing process and issue a final opinion, authorizing Ctill’s operation in Itajaí or determining the opening, for example, of another process.

Source: Diarinho

To read the full original article, please go to: https://diarinho.net/materia/638300/Antaq-suspende-a-contratacao-de-arrendamento-provisorio-do-porto-de-Itajai–

Sharing is caring!