Brazil planning to auction 20 port contracts in 2025

The Brazilian government plans to tender a total of 20 contracts in the port sector this year, amid growing uncertainty in a segment closely tied to the country's trade activity.

The offering includes two leasing contracts for port terminals in Paranaguá, Paraná state, one in Rio de Janeiro state, and another in Rio Grande do Sul state.

In recent years, Brazil has held a series of auctions for port contracts, attracting significant interest from private sector companies due to the country's strong foreign trade.

However, current challenges pose increasing risks for the sector, particularly as Brazil's two main trade partners, China and the United States, are embroiled in a complex trade dispute. The administration of U.S. President Donald Trump has threatened to impose tariffs on multiple nations, potentially disrupting global trade chains.

"The United States and China are currently in the midst of a major trade battle that could certainly have long-term effects on Brazilian trade, as they are Brazil's two biggest trade partners," Luis Otavio Leal, chief economist at asset management firm G5 Partners, told BNamericas.

"This is because, if the United States does in fact impose the [long term] tariffs they have announced, China is likely to retaliate with tariffs as well, and this could bring China to buy more agricultural products from Brazil, which would have a positive effect on Brazil's foreign trade. On the other hand, if this happens, it would generate more food inflation in Brazil," he added.

"At the same time, we must also consider the possibility that China and the United States will reach an agreement in which China increases its agricultural imports from the United States. This could negatively impact Brazil's trade with China, but at the same time, it would ease inflationary pressures in Brazil," Leal noted.

The port contracts on offer

Against this complex backdrop, of the 20 port assets set to be offered this year, four port leasing contracts are scheduled for auction on April 30, expected to generate investments of 850mn reais (US$147mn), according to the country's ports and airports ministry. 

The most significant contracts are at Paranaguá port, Paraná state, and pertain to terminals PAR14 and PAR15.

PAR14 is dedicated to handling and storing bulk agricultural commodities such as soybeans and corn. With an investment of 529mn.reais, the 82,500m² area will have the capacity to handle 6.8Mt/y of cargo. The terminal will contribute to increasing grain exports and integrating the port into the international market.

PAR15 focuses on the transport and storage of bulk agricultural commodities. With a capacity to handle 4Mt/y, the terminal will receive an investment of 293mn reais. The facility spans 43,000m².

Meanwhile, Rio de Janeiro's RDJ11 terminal will be auctioned under a 10-year contract.

The facility is designated to handle and store bulk solids and general cargo, with expected direct investments of 6.8mn reais. The leased area is within the boundaries of the port of Rio de Janeiro and will be developed into a new terminal.

In Rio Grande do Sul, the POA26 terminal spans 22,000m² and is dedicated to handling and storage of bulk agricultural and mineral commodities but, as a multipurpose facility, it will be capable of handling various other types of cargo. Under a 10-year contract, the future operator will invest over 21mn reais.