MercoPress. South Atlantic News Agency

Round of hearings for 35-year concession of Brazil's busiest port has started

An overview of the port of Santos, the largest in Brazil

The round of hearings for the privatization of the Port of Santos in Sao Paulo state, and the busiest of Brazil have started with the participation of the minister of Infrastructure Tarcisio Gomes de Freitas and the different interested parties. It’s basically a 35-year contract project which will demand almost 3,5bn dollars

Organized by the National Waterway Transportation Agency (Antaq), the public hearing aims at allowing the private sector to manage the entire port complex. Consultations and public hearings are scheduled to take place until March 16.

The concession period will be 35 years, with a five-year extension option. According to preliminary studies, the planned investments to adapt the infrastructure of the Organized Port total R$ 16 billion, which will be spread out over the contractual term.

The meeting was attended by representatives from Antaq, state and federal governments, the Santos Port Authority (SPA), unions, and interested companies, in addition to Minister Gomes de Freitas.

“We all know how important the Port of Santos has been to the Baixada Santista over the years. And we all know how important the Port of Santos is to Brazil “, the minister stated during his presentation.

The Santos port authority in anticipation of the privatization process has appointed a new president of the board, Henrique Passos Biral, previously in the financial planning department who has implemented a raft of measures to get the company back in the red, (R$ 87million net profit in 2019 against a R$ 468million deficit in 2018), a Voluntary Dismissal Incentive Plan and addressing the historic deficit of the port workers pension scheme fun Portus.

“In this one year we have reversed historical losses in positive operating and financial results. We will have the challenge of consolidating these gains and positioning the company on a new level of cash generation and profits. In the short term, we will work together with the Ports Secretariat (SNPTA) to accelerate auctions for new terminals and with the National Bank for Economic and Social Development (BNDES), which is being contracted by SNPTA to structure the project for privatization. This is another step towards boosting and encouraging private investments in the port sector,” said Passos Biral.

The port of Santos, the largest in Latin America, handles over 135 million tons of cargo and 4.1 million TEUs annually. Some 27% of all Brazilian foreign trade is channeled through the port of Santos.