Debate on Itajaí privatization divides federal government and local sector

The negotiations for the total privatization of the Port of Itajaí, in Santa Catarina, were discussed on October 26th in a public hearing promoted by the infrastructure committee of the Senate (CI). Several debaters – including the three senators from Santa Catarina – defended the municipal public port authority continuing to head the project, while government representatives defended the concession of the complex to the private sector, since, according to them, there would be a shortage of resources.

The author of the request for the debate, senator Esperidião Amin (PP-SC) said that it is clear that the administration of the port of Itajaí is already being done by the private sector and the local representatives’ intention is to maintain a public agent as the complex’s regulator when the partnership contract is renewed for next year.

“A strong and lean port authority is what we want. The Santa Catarina model is a success story, even without a railroad connecting the ports, which has been a dream since 1870 even without this facility and without the completed port route. What we want is to improve. We want to focus on how the port authority can be public, representing the interests of the large complex, with regular capacity,” pondered the senator.

Government Vision

In defending the concession of the complex to the private sector, the national secretary for Ports and Waterway Transport at the Ministry of Infrastructure, Diogo Piloni, stated that the set of ports in Santa Catarina is growing, but demand is stagnating. Pilone stated that the complex’s operations are publicly managed but take place by private initiative and, since they are not consolidated, this process creates efficiency problems. According to him, the privatized Port of Itajaí “will not stop being part of the city”. Pilone said that the federal government will evaluate maintaining the port authority, but will also consider other options.

“Infrastructure is in deficit, requiring large investments for Itajaí to face this competitive scenario. We do not have federal resources for structuring investments. The Ministry of Infrastructure does not have a single R$ of budget for 2021 to execute port works. We are proposing legal changes. We are discussing with congress and welcoming all observations and concerns, but the formal public consultation process will only take place in November,” he declared.

Source: Senate Agency

To read the full original article, access the link:

https://www12.senado.leg.br/noticias/materias/2021/10/26/senadores-catarinenses-defendem-manutencao-de-authoridade-portuaria-no-porto- de-itajai

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