New minister unlikely to prioritize Brazilian port privatizations

Privatization of Brazil’s biggest port, in São Paulo state's Santos city, is increasingly unlikely.

"Regarding Santos port, our desire is to work toward non-privatization. But let's talk to the productive sector. The port privatization decision is a government decision," Silvio Costa Filho, who was recently sworn in as ports and airports minister, was quoted as saying by local media.

Costa Filho, of right-wing Republicanos party, replaced center-left Márcio França as part of President Luiz Inácio Lula da Silva’s attempt to bolster congressional support for the government agenda.

Despite Costa Filho’s comments, business representatives remain optimistic about the possibility of port privatizations. 

“França has a history completely contrary to privatizations and private sector participation to varying degrees. With the new minister, even though he expressed opposition to total privatization of ports, I think the government ports agenda with the private sector can move forward more quickly,” a specialist at an infrastructure consultancy that advises clients on privatizations and concessions, told BNamericas, requesting anonymity.

Former president Jair Bolsonaro implemented a comprehensive port privatization strategy, but once the new government assumed office in January, all processes were put on hold.

Costa Filho, meanwhile, is a member of the same party as São Paulo’s governor, Tarcísio de Freitas, who was infrastructure minister during the Bolsonaro administration and is in favor of port privatizations.

Itajaí port

Waterway regulator Antaq announced that local firm MMS Empreendimentos won the two-year extendable concession to operate the Itajaí port terminal in Santa Catalina state. The firm defeated six other undisclosed proposals, according to Antaq.

The simplified selection process aimed at starting a transitory lease agreement for handling containerized cargo and general cargo.

A long-term strategy will be designed during the concession term. Maersk's APM Terminals' lease contract expired at the end of last year, leaving the port paralyzed.