Potential Export Processing Zone sparks industry interests in Santos

International companies are showing growing interest in investing in Export Processing Zones (EPZs) in Santos, according to Jorge Lima, the state secretary of Economic Development. “During my recent roadshow in India, I noticed that mentioning a potential EPZ in Santos captures significant attention,” Lima stated, emphasizing the Port of Santos’ strategic importance.

EPZs are free trade areas designed for the production of export goods and services, typically located near ports. The Santos Continental Area has enormous potential to house such a project due to its expansion potential and proximity to the Santos port complex.

“There is consensus across Federal, Municipal, and State governments, and a remarkable appetite from investors for an EPZ in Santos,” said Lima, who participated in an offshore event on Tuesday (11). “As the largest port in the Southern Hemisphere, the Port of Santos is ideally suited for this initiative.”

Investor Interest Surges

Lima expressed optimism about the intense competition expected among companies wanting to establish operations in Santos. “The Port of Santos excels due to its size and significance. Attracting investors here will be a straightforward process. We’ll likely need to draw lots to determine who invests the most, creates the most jobs, or contributes the most to the city,” he remarked, also supporting the expansion of the port’s operational area, which includes parts of Santos and São Vicente.

Legislative Moves and Feasibility Studies

On May 28, Santos City Hall submitted a bill to update land use legislation in the Continental Area, modernizing rules from 2011 to align with urban and tourist development needs.

Previously, an economic feasibility study conducted in April highlighted the region’s potential for hosting an EPZ, as confirmed by Santos City Hall and Infra SA. Although the study’s details were not publicly released, its findings were presented at the Santos Port Authority headquarters.

Calls for Regulatory Flexibility

During a public hearing in Brasília, representatives of existing and prospective EPZs urged the Federal Government to accelerate implementation and introduce legal flexibility for establishing industrial districts within bonded areas. This discussion was facilitated by the Special Subcommittee on EPZs, part of the Economic Development Commission of the Chamber of Deputies.

Currently, Brazil hosts EPZs in Pecém and Parnaíba, while the implementation of an EPZ in Bacabeira is only awaiting presidential sanction. Nine other EPZs are authorized in various states, including Cáceres, Uberaba, Aracruz, Açu, Araguina, Imbituba, Suape, etc.

Government’s Commitment

Fábio Pucci, executive secretary of the National Council of Export Processing Zones (CZPE), announced that at least 56 projects are under review. The government plans to hold quarterly meetings to expedite project approvals.

However, Helson Braga, president of the Brazilian Association of Export Processing Zones (Abra-ZPE), urged the CZPE to hold extraordinary meetings with stakeholders to expedite the process. “The legislation already allows for extraordinary meetings, and any council member can request them,” he stated.

Bruno Dauster, Commercial Director of the Ilhéus ZPE, emphasized the need for legislative changes. “The current process for establishing a ZPE is flawed,” he argued, criticizing the requirement that private investors obtain authorization from a federal authority. “This requirement is unique to this sector and does not apply to any other economic area in Brazil.”

Legislative and Operational Framework

EPZs in Brazil were established under Federal Law 11,508/2007, later updated by Federal Law 14,184/2021. The Subcommittee on Public Policies for EPZs, chaired by federal deputy Florentino Neto, is actively involved in overseeing the development of these zones.

The public hearing featured contributions from various stakeholders, including Álvaro Nolleto, president of the Parnaíba (PI) EPZ, and Hélio Winston Leitão, president of the Pecém EPZ, among others. The discussions highlighted the need for legislative updates to streamline EPZ establishment and attract private investment without excessive federal oversight.

Source: A Tribuna

Original news report available at: https://www.atribuna.com.br/noticias/portomar/santos-desperta-interesse-de-empresas-internacionais-com-zpe-1.422725

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