Four public ports could be privatized by the end of 2022

The privatization of Companhia Docas do Espírito Santo (CODESA), responsible for managing the ports of Vitória and Barra do Riacho, is scheduled to take place in early 2022. It will be the first in a series of auctions that should take place during the year. The concession of the public port for the private sector is included in the federal government’s Investment Partnership Program (PPI) and will be a model for future auctions.

The other auctions scheduled to take place by the end of 2022 are for the Port of São Sebastião (SP), Port of Santos (SP), and Port of Itajaí (SC), in that order. Together, the 4 ports should add up to R$ 20.2 billion in private investments. The most eagerly awaited privatization of the four is the Port of Santos, which expects to receive R$ 16 billion. The public consultation for the auction is scheduled to take place in October 2021.

The private sector’s justifications for privatization are that the ports accumulate losses due to the lack of efficiency and managerial capacity caused by the low volume of investments. According to specialists, private capital will be essential to make the port activity more dynamic and improve the current scenario, ensuring the expected economic development of Brazilian ports, as well as the regions in which they are located.

The possibilities of auctioning the ports began to be studied after the closing of the Companhia Docas do Maranhão (CODOMAR), which caused R$ 8.4 million in expenses per year to the federal government’s coffers, even though it managed no ports for more than a decade, according to data of the Ministry of Infrastructure. After the closure of Codomar, the federal government began to study the privatization of seven other ports that had regular activities but showed signs of being inefficient.

Source: Diário de Pernambuco

To read the full original article, visit the link:

https://www.diariodepernambuco.com.br/noticia/economia/2021/09/quatro-portos-publicos-podem-ser-privatizados-ate-o-fim-de-2022.html?utm_campaign= semana_38_primeiro_nome_viu_as_ultimas_noticias_do_comex_mex_medium=maile RD+Station

Sharing is caring!