Government aims to privatize Rio Docas

Government aims to privatize Rio Docas

On Monday (24/06) during an event with the LIDE Business Council (Business Leaders Group), the Minister of Infrastructure, Tarcisio Gomes de Freitas, presented the perspectives, innovations, and projects of Brazil’s new infrastructure management and emphasized that the federal government views the country’s infrastructure as state politics. “The Ministry of Infrastructure has a portfolio of projects spread over the next few years. We have interesting projects and in a scenario where the world is starting to shrink, Brazil will be full of opportunities”, he said.

Among the projects mentioned there are the highway auctions that will be carried out in the coming years, such as BR-364/365, which will connect Jataí in Goiania to Uberlândia in Minas Gerais which already has an issued notice, in addition to the auctions of BR-153 / GO-TO and BR-163/230 / PA, which do not have tenders issued yet.

Investments in the airport sector were also on the agenda, with the concessions that are to come, and the possibilities of growth with the opening of foreign capital. “The opening of foreign capital and the transfer of airports to the private sector are some of the initiatives that are certain to boost Brazilian aviation”, said Tarcisio. “By the end of 2022 we will have auctioned 44 airports, including Santos Dumont / RJ and Congonhas / SP”, he added.

According to Globo, the minister said that in addition to the privatization of Santos Dumont Airport, the government plans to add other important infrastructure assets located in Rio de Janeiro to the privatization initiative. In the list is the Companhia Docas and the concession of several highways.

When it comes to highways, the minister stressed that Rio`s rail network will be “practically all be privatized “. In addition to mentioning BR-040, he pointed out that the tender for the Rio-Juiz de For a route will address the work needing done on the stretch that goes up the mountain.

Dock Privatization

Freitas also mentioned the plans for the port area with regards to the leasing program. He said the goal is to privatize the Dock companies. The first step is to transfer the companies Docas do Espírito Santo and São Sebastião to the privatization initiative. Then, depending on the result, the minister stressed Rio de Janeiro will be on the radar.

“If these experiences are successful we will think of something similar for the Docks of Rio de Janeiro. Here we perceive a very great potential to attract investment. It is obvious that Docas do Rio is in a weaker financial situation. It needs to recover financially before launching a bidding so that we do not destroy value. Our strategy is to start restructuring the company and then think about the transfer of this asset to the private sector” said Freitas.

He recalled that in addition to having had ten auctions this year, there will be another 10 in August, in Santos, Paranaguá, and others in Suape, Itaqui and Rio Grande do Norte.

“We will start to privatize dock companies, which is a paradigm shift. We see great potential for improvement. The first is the Docks of Espírito Santo, with a large area, and potential to attract private interest, as it has low labor liabilities and few employees. It is a place where we can begin this privatization journey. Then we will privatize the Docks of São Sebastião. And from there we will take the next steps. Our goal is to open the way to the capital of Santos”, said the minister.

Railway investment

Regarding the railways, Freitas said the investment will be to provide infrastructure for the Port of Açu, in São João da Barra, in the North of the State of Rio. He mentioned that he intends to extend the Vitória-Minas Railroad to Rio. In order to accomplish this, he said he intends to use resources from the extension of the MRS Logística contract and federal government resources.

The minister also pointed out that he intends to change the regime of the railway model. “We will bring regime authorization for the railways. That is, the private company that wants to make an investment will receive the authorization, take the risk, and keep the railroad for themselves. It will have the benefit of perpetuity and will be tax free. This is what is happening. In the ports it worked very well. Private terminals handle 66% of all cargo in the country. And we want to do something similar in railways”, he says.

Sources: O Globo e Ministério da Infraestrutra

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