MercoPress. South Atlantic News Agency

Hearing for the privatization of Brazil's major port again postponed

The port of Santos is also the largest of South America, and crucial for Sao Paulo manufacturing structure.

The public hearing for the privatization of Brazil's largest and most dynamic port terminal has been again postponed, for a third time, following on an announcement from the Brazilian National Social Development Bank (BNDES). The purpose of such an action, referred to the Port of Santos, is to give time to more recommendations from the private sector to improve tender conditions.

Initially, the hearing was scheduled to occur on August 22 but, after the first postponement to September 6, and now on September 19. The hearing on the 19th will be virtual and will start at 9:30 am. Those interested in participating can see more information on the BNDES website, reported the development bank.

Last week, Infrastructure Minister Marcelo Sampaio revealed that he had “informally” submitted all studies and projects for the terminal privatization to the Federal Audit Court (TCU) on August 30.

Sampaio said he expected all governance chapters necessary for the tender documents would arrive on time to the TCU, no later than September 16th.

However the different drafts must first be processed at the National Waterway Transportation Agency (Antaq), the Federal Investment Partnership Program (PPI), and BNDES.

Despite the tight schedule, minister Sampaio has reiterated that the government intends to auction the Port of Santos this year. The government expects the Brazilian Court of Accounts to audit the process swiftly.

But despite all the willingness to comply with the timetable the political scenario is increasingly questioning since next month a crucial presidential election is taking place in Brazil, and while the incumbent Jair Bolsonaro is inclined to an open economy, with a smaller state, the opposition ticket with Lula da Silva favors a more prevalent government attitude and presence, with greater control on markets and the functioning of the overall economy.