Federal gov’t rules Port of Itajaí will remain municipally managed until privatized

On Monday, July 25, the city government of Itajaí and the Federal Government gave extra life to the Public and Municipal Port Authority. The renewal of the contract for the delegation of the Port of Itajaí was made official until the end of the privatization process.

A clause in the extension contract allows the Government to terminate the agreement with the municipality before the two-year extension period. Terminating this measure would be essential for the port to prevent socio-economic problems caused by logistical insecurity. The clause, however, was maintained.

“We realized these two years would be crucial to providing economic certainty to market operators to maintain lines in and out of the port.  However, the positions of the Ministry of Infrastructure and the Secretariat of Ports were unshakable, and we had no choice but to sign this renewal to avoid a management schism at the Port of Itajaí. As a result, it will continue to work until the completion of the privatization process,” explains Fábio da Veiga, the superintendent of the Port of Itajaí, who attended the meeting in Brasília.

With the Federal Government’s denial of excluding the resolutive clause, the Municipality will seek to develop the best proposal for exploring the Port of Itajaí in this transitional period, starting in 2023.

“The Port of Itajaí is the city’s economic core, ranking 12th in the country in terms of federal revenue. Therefore, transitioning in a stable and secure manner is critical for both the Municipality and the Federal Government. We will keep municipal management throughout this transition period because we believe it is the best approach to protect the city and its people until the privatization process is concluded,” said Itajaí’s Mayor, Volnei Morastoni.

Municipal management 

In addition to extending the term of the contract, a series of requests were reinforced at the meeting, like expanding the port’s organized area to the BR-101 highway so that the Municipal Port Authority may manage the access channel; the delegation of non-operational areas to the city administration; and the development of the port expressway.

The National Secretary of Ports and Waterway Transport of the Ministry of Infrastructure, Mario Povia, clarified that the privatization process is underway and the auction is expected to take place by the end of this year.

The port will remain municipally managed until the new operator is able to take over. However, other areas that belong to the port will continue under the administration of the city of Itajaí, as signaled by the Federal Government.

Delegation of the Port of Itajaí

The agreement for the delegation of the Port of Itajaí to the Municipality ends on December 31 of this year. The Municipality manages the terminal, while the entire operation is private. Since 2017, the city has requested to extend the deal for another 25 years.

However, a privatization process for the port has begun, with the total transfer of administration initially scheduled by early 2023. The Ministry of Infrastructure delayed this procedure; therefore, the deal was prolonged for another two years.

Source: ND Mais

To read the full original article, please go to: https://ndmais.com.br/infraestrutura/gestao-do-porto-de-itajai-permanece-municipal-ate-a-privatizacao-define-governo-federal/

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