Codesp talks with Suzano and Eldorado about exporting pulp from Libra Terminal

Libra Group’s decision to withdraw operations from Santos could be a stroke of serendipity for Brazil’s pulp producers. Santos Port Authority (Codesp) is in talks with pulp companies such as Suzano Papel e Celulose and Eldorado Brasil, with the prospect of using Libra to export pulp produced in Três Lagoas, Mato Grosso do Sul. If negotiations advance, Santos will have the capacity to export 100% of the pulp produced in Mato Grosso do Sul, some 7m tons of pulp per annum. Part of the production today is exported via the ports of Paranaguá and São Francisco do Sul.

DatamarNews reported the Brazilian Bankruptcy and Judicial Recovery Court had ordered Libra Group to continue operations at the Port of Santos. The court said Libra could not close while the company is undergoing a judicial process. The judge, Paulo Furtado de Oliveira Filho, ordered the company to continue its operations and honor all existing contracts. According to Estadão, although the liner companies have already decided to stop activities at the terminal, Libra is required to maintain the minimum movement stipulated within the contract with Codesp, or in other words, continue paying taxes to the port authorities.

However, the outcome of talks with pulp producers may change requirements for Libra. Codesp have said a transitional contract could be used to allow the pulp companies to operate over the short term while the licitation process for the long term use of the port area is being conducted. Codesp currently use this model for Pérola Terminal; the terminal’s transitional contract has recently been renewed for another 180 days to maintain operations until a new terminal operator is found.

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