Contention over Santos-Guarujá tunnel ends with Public-Private Partnership resolve

Despite the contention on the privatization of the Port of Santos, the Brazilian federal government and the government of São Paulo have agreed to construct the Santos-Guarujá tunnel through a Public-Private Partnership (PPP). The project will involve a combination of public funds and concessions to the private sector.

Discussions regarding the inclusion of the tunnel in the Growth Acceleration Program (PAC) took place on Tuesday (19), with the participation of Governor Tarcísio de Freitas and Chief of Staff Rui Costa, as well as representatives from the Ministry of Ports and Airports.

The Santos-Guarujá tunnel project has been a cause of contention between the federal and state government.

Former Minister of Infrastructure, Tarcisio de Freitas, advocated privatizing the Port of Santos during his tenure. He has expressed continued support for the idea since assuming as the Governor of São Paulo.

However, Minister Márcio França and President Lula have discarded the privatization proposal. It remains uncertain whether the Santos-Guarujá Tunnel will be included in the list of projects covered by the new PAC.

According to GloboNews, the total cost of the tunnel project is estimated to range between R$ 5 billion and R$ 7 billion, with a construction period of up to 44 months. Whether the federal or state government will prepare the bidding notice has not yet been determined.

The auction for the project is expected to take place next year. The winning company involved in the PPP will be responsible for operating the tunnel for a period of 30 to 35 years.

About the Santos-Guarujá Tunnel:

The São Paulo government claims to have a certified executive project for the construction of the tunnel. The precast block structure would be built through excavation beneath the Santos estuary. Currently, the options for crossing between Santos and Guarujá are limited to ferries, which require interruption of port activities during transit, or a 43-kilometer road route.

The São Paulo government states that the tunnel will significantly reduce travel time for pedestrians, cyclists, and vehicles without interfering with other modes of transportation. It is expected to save time and fuel and optimize traffic flow around the port area.

The governor’s team has been involved in conversations with the Inter-American Development Bank (IDB) to conduct studies on demand and traffic flow based on experiences from similar constructions in other countries.

Source: G1

To read the original news report, visit: https://g1.globo.com/sp/sao-paulo/noticia/2023/06/22/sem-consenso-sobre-privatizacao-do-porto-de-santos-governo-federal-e-gestao-tarcisio-definem-ppp-para-tunel-santos-guaruja.ghtml

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