Itajaí Port terminates dredging contract with Van Oord
Sep, 09, 2024 Posted by Gabriel MalheirosWeek 202437
The Itajaí Port Superintendency has decided to terminate its contract with Van Oord, the company responsible for dredging the Itajaí-Açu River’s access channel. An emergency tender to hire a new company was expected to be released by Monday. The bidding process will remain open for five days to receive proposals, with immediate availability being one of the criteria for selection.
Dredging operations have been suspended since August due to a debt of R$35 million related to the contract. The resumption of the service was contingent upon the payment of the outstanding amount. Despite months of negotiations, the company failed to respond to the final debt settlement proposal, which was presented on August 27 in Brasília, prompting the port authority to issue a contract termination notice.
Van Oord had made a counteroffer to settle the debt. However, during an emergency meeting in Brasília on August 27, involving the National Secretary of Ports, Alex Ávila; Antaq director, Alber Furtado de Vasconcelos Neto; Itajaí Port Superintendent, Fábio da Veiga; and port industry representatives, a final proposal was put forward. The company was given 48 hours to respond.
“With the deadline for a conclusive response having passed and the urgent need for dredging, the Itajaí Port Superintendency consulted with other companies that provide dredging services to evaluate the availability of equipment, pricing, and immediate mobilization viability,” the port authority stated.
The superintendency decided to terminate the contract with Van Oord and urgently hire a new company. “Itajaí Port will contract a new company for a 12-month period, aiming for the same or similar pricing as the current contract,” the superintendency clarified.
Six-Year Contract
The termination of Van Oord’s contract ends an agreement that had been in place since 2018. Initially set to expire on December 15, 2023, the contract had been extended for one more year. During discussions on resuming dredging operations, a further extension was considered to allow time for the port to organize a new tender for the service. The current contract carried a monthly cost of R$7.5 million. With the port’s financial restructuring, the debt is expected to be settled after the termination.
Superintendent Fábio noted that the port had a longstanding relationship with Van Oord and expressed regret that the company “chose a radical approach” by halting its activities. “Public interest takes precedence over private interests, and since we have another opportunity in the market with similar conditions and no additional costs for the port, the decision was made,” he explained.
The resolution to the dredging crisis comes as the port anticipates the resumption of container operations by JBS Terminais, which has taken over the temporary lease and plans to restart activities on September 13. “Now, all that’s left is for customs clearance to be completed so that ships can return to the port,” Fábio emphasized.
The return of operations is also expected to provide financial relief for the port, which has seen its revenue plummet due to the terminal’s inactivity. “The challenges that plagued the last year and eight months should soon be behind us. We understand the underlying causes, including the legal uncertainties introduced by the previous federal government under Bolsonaro, which unsuccessfully tried to privatize the port. This attempt led to instability and drove away the former leaseholder and shipping companies,” Fábio criticized.
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