Under the hammer: Brazil to offer port terminals worth US$2.7bn

The Brazilian government plans to offer 33 contracts in the port sector through 2026, expecting to attract investments worth 15 billion reais (US$2.66bn).

Most contracts will be for the leasing of port terminals, the ports and airports ministry said in a statement.

The port sector recorded year-on-year growth of 4.28% in January-June, handling 645Mt of cargo, according to sector regulator Antaq. Iron ore made up 28.8% of the total, followed by soybeans and oil with 16% and 13.6%.

The sector’s current expansion and the pipeline of new contracts are factors that are set to drum up the interest of major players.

"For years the port sector in Brazil had many projects that were announced but few progressed to the construction phase, and now there is a clear sign of progress with the projects and in light of this, we’re actively seeking to arrange new contracts. At this moment, we’re looking at this sector with more interest than any other infrastructure area," the director of one of the country’s largest infrastructure firms told BNamericas on condition of anonymity. 

The contracts to be offered could also draw the attention of international players. 

"In the coming months we will likely see the beginning of an interest rate reduction in the US and this will have a direct effect on the investment decisions of global investors, who once again will look with greater interest at assets from emerging markets, such as Brazil, given the higher return on investment potential," Alexandre Pierantoni, the head of Kroll’s corporate finance and M&A area, told BNamericas.

UPCOMING TENDER 

The government will offer concessions for five new port terminals at an auction on August 21.

The terminals are REC08, REC09 and REC10 in Recife in Pernambuco state, RDJ06 in Rio de Janeiro, and RIG10 at Rio Grande port in Rio Grande do Sul state.

The contracts involve total investments of 86.1mn reais and have a duration of 10 years, according to the ports and airports ministry. 

REC08 will handle vegetable bulk and demand an investment of 51mn reais.

The focus of REC09 and REC10 will be solid bulk and general cargo, and they will require investments of 2.2mn reais and 3mn reais, respectively.

The investment in RDJ06, which is for liquid bulk, will be 22.1mn reais and the general cargo-focused RIG10 will involve 7.8mn reais.