The Federal Government Plans to Offer Concessions Through 11 Auctions for the Remainder of the Year; The Private Sector is Optimistic
The Brazilian federal government’s plan to offer concessions for several port terminals in the coming months is motivating private sector participants to raise funds in preparation for the upcoming auctions.
The container terminal operator Santos Brasil is trying to raise at least 1 billion reais (US $ 190 million) through an initial public offering in the local market to purchase new port assets. The company stated that it plans to sell 192.68 million shares on September 24.
AUCTIONS
The government plans to offer concessions through 11 auctions for the remainder of the year, including for terminals in the ports of Paranaguá, Vila do Conde, Itaqui, Aratu, Itaguaí, Porto Alegre, and Maceió.
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In January 2021, auctions are expected for two liquid fuel terminals in Itaqui, a liquid bulk/sulfuric acid terminal in Maceió, and one for soybean handling in Macapá.
Last month, the Ministry of Infrastructure held auctions for the concessions of three port areas – raising more than 500 million reais.
One of these concessions was at the port of Vila do Conde, in northern Pará, for the installation and operation of a gas plant and a floating storage and regasification unit for LNG. The concession was granted to Centrais Elétricas de Barcarena (Celba), comprising the Golar Power Plants and Evolution Power (EPP).
The other two terminals offered by the federal government were at the port of Santos and will require a total investment of 380 million reais during the 25-year concession period. Both terminals are used for pulp and were granted to Eldorado Celulose and Bracell, respectively.
SHOWING RESILIENCE
The Brazilian port sector remained resilient during the COVID-19 pandemic. State and private ports handled 538 Mt of cargo in the first half of the year, an increase of 4.4% compared to the previous year, according to the National Agency for Waterway Transportation (ANTAQ)
Cargoes of oil and its derivatives and soybeans saw the largest growth, at 19.8% and 31.4% for 123 Mt and 81 Mt, respectively.
