Brazil's Paraná state readies port terminal auction

Brazil’s Paraná state is preparing studies related to leasing contracts for two Paranaguá port terminals, while two other terminals will be auctioned this month.

"PAR03 will be used for handling solid mineral bulk, mainly fertilizers. The area has 38,000m2 and includes the patio in front of the administrative headquarters of [port authority] Portos do Paraná and the public fertilizer terminal. The preliminary study points to the need for a minimum investment of 233mn reais (US$45mn), an amount that can still be changed. PAR05, which has around 30,000m2, is in the initial studies phase," according to a press release.

The auction for the PAR09 and PAR50 terminals is planned for February 24 and expected to generate investments of 1.25bn reais. The 25-year contracts will go to the companies offering the highest fee. 

PAR09 covers 26,580m2 and is used for solid vegetable bulk. Estimated investment is 911mn reais. Covering 85,390m2, PAR50 is for liquid bulk and estimated investment is 338mn reais.

Auctioning leasing contracts has been the most common mechanism to attract private investment to the port sector.