Brazil's US$1.55bn airport auction faces new headwind

A new roadblock emerged for the auction of 16 Brazilian airports, involving investments of up to 8.6bn reais (US$1.55bn). 

Concessionaire GRU Airport, operating the country's busiest terminal, Guarulhos, in São Paulo state, seeks to be part of a working group formed recently by the federal government to discuss potential changes to the auction notice.

GRU wants to discuss changes regarding the Congonhas airport concession, a spokesperson told BNamericas. 

The problem for GRU is that both terminals are only 30km apart, and GRU worries Congonhas will be authorized to handle international flights, generating competition.

But analysts deem this scenario unlikely because Congonhas is in the heart of São Paulo city and close to major avenues, imposing limitations on expanding its size to serve larger planes.

"I don't see many possibilities of Congonhas being a competitor for the international flights that Guarulhos serves," Daniel Keller de Almeida, managing partner at infrastructure consulting firm Una Partners told BNamericas.

SANTOS DUMONT 

The working group formed by the federal government was created due to another controversy.

Last week, the infrastructure ministry accepted the creation of the group with Rio de Janeiro state representatives to discuss a solution to the planned Santos Dumont airport concession.

Authorities raised concerns because the federal government wants to allow the airport to handle international flights, which RIOGaleão, controlled by Changi Airports International and concessionaire of Galeão international airport, opposes.

Santos Dumont has the potential to eclipse Galeão, which is a cargo logistics hub and provides 17,000 direct and indirect jobs in the state.

In recent years, the federal government has been auctioning airport concessions in blocks, mixing more and less profitable ones.

Congonhas and Santos Dumont, the second and third busiest airports respectively, are considered the most attractive assets in the next round and, despite controversies, analysts expect the auction to go ahead. 

"I believe that the issues that are being raised now will likely be resolved in time to have an auction with the 16 airports … by the end of the first half," said Almeida.

On offer will be block SP-MS-PA, comprising Congonhas and Campo de Marte in São Paulo state; Campo Grande, Corumbá, and Ponta Porã in Mato Grosso do Sul; and Santarém, Marabá, Parauapebas, and Altamira in Pará. 

Block RJ-MG includes the Santos Dumont and Jacarepaguá airports in Rio de Janeiro, and Montes Claros, Uberlândia and Uberaba in Minas Gerais. 

Northern block II includes airports serving Pará state capital Belém and Amapá state capital Macapá.