Santos emerges as ideal location amid talks of new Export Processing Zone

Consultants and experts deem the Baixada Santista, home to the Port of Santos, the ideal location for a logistically competitive Export Processing Zone (ZPE in Portuguese). Proximity to export destinations and favorable time and cost conditions for product delivery make the region an optimal choice.

While the project promises significant social and economic benefits, experts emphasize the need for careful consideration due to existing challenges stemming from the high volume of activity in the Santos complex. Without anticipating the infrastructure to address new demands, introducing a ZPE could exacerbate existing problems.

Recently, Bruno Orlandi, the Secretary of Port Affairs and Employment in Santos expressed the idea of establishing a ZPE in the city’s continental area. He highlighted that the new legal framework for ZPEs allows installations within a 30-kilometer radius of each other, benefiting other regional municipalities.

Orlandi emphasized the potential role of the port and its surroundings in a strategic process of the state’s reindustrialization. Seeking support from interested companies to prepare necessary documents for submission to the Ministry of Economy, he envisions a pivotal role for the region in revitalizing industrial activities.

According to the Municipal government, the Secretary of Port Affairs and Employment has engaged with Infra S.A. to conduct an economic feasibility study for implementing a ZPE. The study, commissioned by the Ministry of Ports and Airports following Orlandi’s presentation in Brasília, is expected to be completed by June.

The Ministry of Development, Industry, Trade, and Services stated that, as of now, there is no ongoing process within the National Council of Export Processing Zones (CZPE) to create a ZPE in Santos. If a proposal is received, its viability will be assessed.

Towards Reindustrialization

Reindustrialization efforts find support from logistics and transportation export and Porto Consultoria Agency consultant Ivan Jardim. “It will foster job creation, direct and indirect tax collection, and increased movement at the Port of Santos,” he said, foreseeing benefits for Santos and Guarujá.

Marcos Vendramini, an expert in Port Operations and a professor at the Catholic University of Santos (UniSantos), believes reindustrialization would primarily implicate favorable tax and customs treatment. This would include partial exemptions for IPI, Cofins, PIS/Pasep, Import Tax, and Additional Maritime Freight Fee, potentially extending to ICMS.

“That would go for at least 20 years, which seems a short period of time for the return on investment in the challenging perspective of implementing a production unit. New port leases already have a limit of 35 plus 35 years”, compares Vendramini, also director of V2PA Engenharia e Consultoria.

Vendramini highlights the potential for improved logistics with an air connection. He suggests that São Vicente has areas suitable for a larger airport, with a runway of at least 1,800 meters, and Praia Grande plans to install its airport.

Municipal Candidacy and Preparation

Discussions on creating an Export Processing Zone are gaining traction across the Baixada region. Guarujá, in particular, has taken proactive steps regarding territorial planning, legislation offering incentives to companies, fiscal balance, legal security, and environmental rigor. The municipality has contacted the Federal Government to secure the installation of a ZPE in the city.

In Cubatão, the Municipal government recognizes the potential significance of a ZPE, especially considering the vast size of the city’s industrial complex, one of the largest in Latin America. While the project is in the initial study phase, with no defined management model, the city contemplates offering conditions for creating industrial estates.

In Santos, the city government highlights that the Continental Area is zoned for ports, inland terminals, and industrial activities. With terrestrial (road and rail) and aquatic accessibility, the city is deemed ready to host a ZPE, as confirmed by the National Council of Export Processing Zones (CZPE) multiple times this year.

Source: A Tribuna

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