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Brazil plans October public hearing for US$3bn Santos port concession

Bnamericas
Brazil plans October public hearing for US$3bn Santos port concession

The Brazilian government is planning to hold a public hearing in October regarding the structuring of the concession for the port of Santos, the busiest in South America, despite doubts about the initiative. 

According to infrastructure minister Tarcísio Gomes de Freitas (pictured), the concession for the port authority is expected to attract investments of 16bn reais (US$2.96bn). 

“We need to take advantage of the benefits that will come with the private sector initiative. We are talking about investments to improve access to the port, to dredge the channel, and to solve connections between Santos and Guarujá [cities]," Freitas said in a release.

The government is planning to hold the auction for the concession next year, something stakeholders believe will be difficult. 

"The concession of the port of Santos has a lot of merit, but we have to consider that we’re approaching an electoral year, with an already polarized political scenario and the concession of the port involves many interests. There are terminal operators that are not very favorable to the idea of a concession of the port authority," a financial adviser who works for private sector investors in the ports segment, told BNamericas on condition of anonymity.

The government is pushing ahead with the Santos concession at a time when ports have been performing positively.

Santos port authority (SPA) posted a net profit of 98.9mn reais in the second quarter, the highest on record and more than double that in the same period 2020. 

“The company is ready for privatization. We gained efficiency and quality in the provision of services, reduced costs, strengthened liquidity, mapped and addressed all liabilities," said Marcus Mingoni, SPA’s finance director in a recent press release.

The government is also advancing with port projects that are considered much less complex, such as the leasing of two Santos port terminals, STS08 and STS08A, which are expected to be offered by the end of this year and are likely to generate investments of 1bn reais, along with a concession for Espírito Santo state’s port administrator Codesa.

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