The privatization of the Port of Santos dominates Brazil’s roadshow in the US

The privatization of the Port of Santos, the largest in Latin America, was the main topic in several meetings held between the Brazilian delegation in the US and investment funds, banks, and infrastructure agents on the second day of Brazil’s roadshow in New York.

With expected investments worth R$ 16 billion, the process will allow the terminal to become the largest in the entire Southern Hemisphere and solve historical problems prevalent in the coastal city of the state of São Paulo.

EIG Global Energy Partners and the United Arab Emirates logistics multinational DP World, which owns operations in Brazil’s private port terminal sector. The presence of these companies at the event indicates that the privatization of the Port of Santos (SP) is one of Brazil’s planned concessions with the greatest potential for attracting investors.

Model

Approximately R$11 billion of the R$16 billion in planned investments will be used to increase railway capacity and, as a result, cargo movement. Other works also include adapting the federal highways that connect the country’s hinterland to the port, as well as constructing a tunnel connecting the city’s East and Northwest zones.

Privatization will increase the volume of goods handled from 160 million per year to 290 million tonnes over the next few decades.

The bidding process of the Port of Santos will follow suit with the same model applied to the privatization of the Companhia Docas do Espírito Santo, the first port privatization held in Brazil and a reference for the next generation of public port auctions planned by the Federal Government. Codesa was privatized alongside the ports of Vitória and Barra do Riacho in March.

The successful initiative ensured at least BRL 850 million in private investments over the next 35 years of the contract: BRL 335 million in new facilities and improvements and BRL 515 million in maintenance initiatives, such as dredging the terminal access channels.

The concession of the ports of São Sebastião (SP), Itajaí (SC), and Canal de Paranaguá (PR) shall be formalized still in 2022, in addition to leases of 19 different port terminals. In total, 37 various leases have occurred since the beginning of the current administration, bringing R$ 6.1 billion in private investments.

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