Santos Port Authority is qualified by the government for privatization

The Santos Port Authority (Codesp) was qualified by the government to be privatized through the Investment Partnership Program (IPP). The decision was made at the 10th meeting of the IPP Council, held last Wednesday (0/218) in Brasilia. Another 32 initiatives, including two in the Port of Santos, were included in the program.

Responsible for managing the Port of Santos, Codesp is a 100% publicly owned company, with over 99.99% of the shares in the hands of the Union and less than 0.01% owned by the city of Santos. According to the schedule, the studies are expected to be approved in November 2020; the notice to be published in July 2021; and the auction to be held in November 2021.

According to Santos Port Authority President Casemiro Tércio Carvalho, the inclusion in the IPP is another step towards the revitalization of the company: “It shows that we are on the right path. We understand that the best form of privatization for the Port of Santos is an IPO (initial public offering), as it includes the company in an environment of B3’s New Market practices, ensuring good governance and transparency in management, as well as strengthening the capital market in Brazil. We will work closely with the government to bring the best proposal to market, one that meets the interests of the port community and the country as a whole,” he said.

The leasing of two areas in the Port of Santos was also announced: STS 14 and STS 14A, today occupied by Libra Terminais. Announcements are expected to be published in February 2020 and auctions to be held in May of the same year.

Qualified infrastructure projects in the IPP form part of the program portfolio and have since become a national priority. The meeting was attended by the President of the Republic, Jair Bolsonaro, and several ministers, among them Infrastructure Minister Tarcísio Gomes de Freitas, who is responsible for various projects in the IPP portfolio.

In just over three years, the IPP delivered relevant results for Brazil’s infrastructure and economy. Of the 248 projects qualified in the previous nine CPPI meetings, 151 have already been auctioned and will generate investments of R$262.5bn in the coming years, not to mention the collection of grants of about R$52.3bn for the Union.

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