Legal dispute between Marimex and Federal Government over railway project at Santos

A legal dispute between Marimex and the Federal Government is preventing the construction of a railway reverse loop at the port of Santos (SP). The railway structure makes it possible to transfer cargo without the need to disassemble the train and is planned for in the new Development and Zoning Plan for the Port of Santos.

The venture could almost quadruple solid bulk handling to 20 million tons by improving access to 13 terminals.  The problem is that the project stipulates the reverse loop as being built where the current Marimex terminal is located, which does not intend to leave the port area, even though its contract to remain expired on May 8. The company claims that the contract provided for the possibility of renewal for another 20 years.  Marimex has obtained two preliminary decisions in its favor – one from the Federal Audit Court (TCU) and another from the Federal Regional Court of the 1st Region (TRF-1).

The Santos Port Authority (SPA) is preparing its defenses to present to both the TCU and the Public Prosecutor’s Office and to follow the port’s original plans. According to the entity, the reverse loop is a project budgeted at about R$170 million reais and is part of a larger investment package, in the order of R$1.5 billion.

There are other projects relying on this plan to go ahead.  For example, the railway capacity that is being expanded to transport cargo such as the grain harvest from Brazil’s Midwest to the Port of Santos.  It is also worth remembering that on May 27, an extension of the contract between Malha Paulista and Rumo was signed, which foresees that within five years, current railroad capacity will be expanded from 35 million to 75 million tons, the majority of which is planned to be received by Santos.

Despite the current legal dispute, there are conversations about the possibility of a relocation of Marimex within Santos Port, which could help end the impasse. The company does not want to comment on the matter.

Source: Reuters

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