Port privatization is flavour of the month in Brazil

The port sector is approaching a historic turning point in Brazil. The Federal Government wants to see concluded, by the end of the year, the privatization of the Port of Santos, the largest complex in Latin America, and the entry and exit route for 29% of all commercial transactions in Brazil.

Part of the requirements to participate in the bidding process involves investing R$ 18.5 billion in renovations, expansion, and upkeep. Simultaneously, the interested party must submit a bid at the initial value of R$ 1.38 billion. This is the deciding factor: the auction will be awarded to the person who submits the greatest grant application, a charge paid to the federal government for terminal management.

With the bidding, the current port manager, the state-owned Santos Port Authority (SPA, formerly Codesp), will be privatized and not return to the government. The physical areas of the port will be granted to the same buyer for 35 years without extension.

The Ministry of Infrastructure expects to see intense competition at the auction, the biggest after the sale of Eletrobras. The government has presented a proposal to investors from countries like the USA, France, the United Arab Emirates, and Italy, in addition to having held a public hearing in Brazil.

“This is a unique moment for the port sector. We are going to take a new and safe step to promote ports, with the participation of the private sector, which will guarantee the expansion of national logistics”, says Rafael Furtado, deputy secretary for development, planning, and partnerships at the ministry. The information is from the newspaper O Estado de S. Paulo.

Source: Isto É

To read the full original article, please go to:

https://istoe.com.br/porto-de-santos-vira-a-bola-da-vez/

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