Port authority wins licitation dispute concerning leases in Paranagua Port

Portos do Paraná received two court rulings in its favor, one from the State Court and one from the Federal Court, both of which confirmed the legitimacy and transparency of the bidding procedure for the leasehold lands known as PAR 32 and PAR 50 at the Port of Paranaguá.

Regarding the PAR 32 case, the port authority’s Legal Department defended the best public administration grant proposal, the actions taken by the Portos do Paraná port area bidding committee, the legality and regularity of the qualification documents submitted by the winning company of the auction that took place in March 2022 at the B3 (Sao Paulo Stock Exchange) headquarters.

At that time, the second-place company in the bidding process offered a concession fee bid of R$ 25 million, which was R$ 5 million less than the winning bid. The concession fee is entirely redirected to public funds. Hence, the emphasis is on selecting the best proposal, in this case, R$ 30 million.

“These two rulings are extremely important to restore legal certainty in the bidding procedures of Portos do Paraná conducted in collaboration with the Brazilian Stock Exchange, B3,” highlighted Luiz Fernando Garcia, the CEO of Portos do Paraná.

The Appeal Hearing took place on Tuesday (29) at the Paraná State Court of Justice (TJPR). Following a unanimous decision, the 5th Chamber of the TJPR acknowledged the legality of the qualification of the company that offered the highest concession fee value in the bidding process for the area designated as PAR 32.

According to Deputy Substitute Judge Marcelo Wallbach Silva, with the support of Judges Carlos Mansur Arida and Leonel Cunha, there was no illegality in the qualification of the winning company as the winning bidder met the requirements outlined in the bidding announcement.

The PAR 32 area encompasses approximately 6,600 square meters, situated to the west of the quay of the Paraná port. It is intended for the storage and handling of general cargo. The lessee is obligated to invest a minimum of R$ 4.17 million within a one-year period.

PAR 50 – On August 22nd, the Federal Court rendered another positive ruling for the Administration of the Ports of Paranaguá and Antonina. It relates to one of the legal actions challenging the legitimacy of the PAR 50 bidding procedure.

In the ruling issued by the 5th Federal Court of Curitiba, the Magistrate recognized the absence of omission in the bid terms regarding the alleged compensation for improvements made by the company currently occupying the auctioned area. The ruling underscored the discretion of the manager, as well as the precariousness and gratuity of the authorization for using the public asset until the completion of the respective bidding process.

According to the decision, “the authorization that the plaintiff had to exploit the area was precarious and free; thus, there is no subjective right for the petitioner to continue the authorization.”

Furthermore, the decision highlighted that “authorization, being a precarious administrative act, generally does not confer the right to compensation in case of revocation, annulment, or cancellation by the Administration.”

The 85,392-square-meter area encompasses the União Vopak terminal and the Public Alcohol Terminal (TEPAGUÁ), designated for the handling and storage of liquid bulk.

The PAR 50 terminal at the Port of Paranaguá was auctioned in February of this year at the B3, with a concession fee value of R$ 1 million offered by FTS Group. The company is obligated to invest a minimum amount of R$ 338.2 million in operational capacity expansion works under a 25-year lease contract.

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