Ports and Terminals

Government starts process of privatizing Santos and São Sebastião ports

May, 06, 2020 Posted by Sylvia Schandert

Week 202020

The Infrastructure Ministry signed a contract with BNDES (Banco Nacional de Desenvolvimento Econômico Social) to carry out studies on the new management and development models for the Port of Santos (SP) and the Port of São Sebastião (SP). The contract was published on April 4, in the Official Federal Gazette. The results of the studies are expected to be released in the first quarter of 2021 and the auction is expected to take place in 2022.

These studies will define the best development models for the two ports, as the state could transfer an activity or asset to the private investor via a sale, concession or authorization. The expectations are that incorporating the private sector in the management of ports will generate a greater flow of investments, more dynamic port activity, modernization and improvement of services, increased efficiency, more competitiveness (both internal and external), as well as incorporating the best international practices.

“The search for a more efficient, flexible, model that can increase potential investments for the Brazilian port management, through private resources, is our next goal. And studies, like the one for the Port of Santos, which is responsible for 28% of Brazilian trade, is a definite milestone in this process,” evaluates the minister of infrastructure, Tarcísio Gomes de Freitas.

Last year the first stage of this process was started: making sure the studies were qualified for privatization with the Investment Partnership Program (PPI). Now, after signing the contract with the BNDES, the bank is responsible not only for modeling the privatization of port developments and supervising the studies but also for supporting public hearings and auctions. The bank will also follow the process until the contract has been signed by the public sector and the eventual private partner.

 

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