G-20 report says Brazil´s port privatization plan could boost its share of world maritime trade

According to an assessment by the Global Infrastructure Hub (GI Hub), of the G-20 countries, the Port Privatization Program by the Ministry of Infrastructure (MINFRA) may boost Brazil’s participation in world maritime trade. The assessment was presented on Wednesday, October 7, with the release of the final report on the development of infrastructure markets in several countries around the world. The meeting was attended by Diogo Piloni, National Secretary for Ports and Water Transport (SNPTA), who represented the Ministry of Infrastructure (MINFRA), one of the partners of the initiative, in addition to representatives of the Ministry of Economy, EPL, and BNDES.

The report delivered by the GI Hub presents the results of a structured dialogue with the private sector before the privatization auctions scheduled for four port authorities: Companhia Docas do Espírito Santo (CODESA), Santos Port Authority, and São Sebastião and Itajaí Organized Ports.

At the meeting, Piloni presented the details and the next steps of the federal government’s port-privatization program, highlighting the importance of the partnership with the GI Hub. “This initiative took place at a special moment in Brazil, in which the public-private partnership is gaining the necessary space to foster the port sector. Our next privatization projects will be more efficient and flexible and will expand the investment potential through private resources”, said the secretary.

Report

The final market consultation report presents the perception of investors and possible stakeholders about the port privatization projects in progress. According to the GI Hub, the incentives to engage the private sector in ports are not only in selecting and bidding but also in optimizing the risk and responsibility-sharing structure between the public and the private sector.

The survey was carried out with 14 companies and 31 stakeholders, in nine different countries. Private port operations have been reported to improve competitiveness in Latin America and the Caribbean through increases in efficiency and productivity in cargo management, and World Bank data show that private sector participation and port competition are correlated at the highest levels of operational and economic performance.

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