Government Earned 505 Million Reais Today (08/28) From Auction of Terminals at Port of Santos

The Winning Companies of the Auction, ELDORADO and BRACELL, Will Manage the Pulp Terminal Areas at the Port of Santos for 25 Years

Today (08/28), the first auction of infrastructure assets included in Pró-Brasil took place, where the Federal Government raised R$ 505 million in grants with the concessions of the pulp terminals at the Port of Santos (SP). Port Disputes: State Government Proposes New Free Gas Market Law and Reduction of ICMS on Bunker Fuel to Increase Port Activity in the State

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The Eldorado Brasil Celulose group won terminal STS14 with a bid of R$ 250 million. The terminal STS14A was won by the Bracell SP Celulosa Ltda group for R$ 255 million. The winning companies of the pulp terminal auction at the Port of Santos offered the highest grant value and secured the right to manage the areas for 25 years.

The auctions were conducted by the National Agency for Waterway Transport (Antaq) and mark the resumption of the government’s concession program since the health crisis resulting from the new coronavirus began.

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The Minister of Infrastructure, Tarcísio Gomes de Freitas, celebrated the success of the auction. “We are taking firm steps to transform the port sector and improve navigation in Brazil. We are a country that is destined to grow. Change is not made by the government. It is made by those who move the machinery and by those who have the will to transform the country. We will be great,” he stated.

The auctions consolidate a new logic of optimizing the use of areas at the Port of Santos. This way, cargo movement will occur in a more sectorized and effective manner, according to the new Zoning and Development Plan (PDZ) of the port. With the upcoming railway accesses to be constructed in Santos, which will allow integration with Rumo Malha Paulista and North-South Railway lines, the transportation of pulp, as well as other cargo, will be based on multimodality, one of the major premises of the transportation sector.

The Terminals of the Port of Santos

Together, the terminals will have projected investments of around R$ 420 million, including road-rail accesses, and will generate R$ 110.9 million for the Santos Port Authority (SPA), the port authority that manages the port, throughout the entire concession period. The two terminals will create over 7,600 jobs, both direct and indirect, and generate income effects.

The STS14 terminal at the Port of Santos, which has an area of 44,500 square meters, will be served by two berths located at the public pier of Macuco, with a total length of about one kilometer. Eldorado Brasil Celulose is expected to make investments such as building a new warehouse and acquiring gantry cranes to enable the unloading of a train composition of 67 cars with 88 tons each in, at most, 8.5 hours, for example.

Bracell SP Celulosa Ltda, the winner of STS14A, with an area of 45,100 square meters, in addition to building a new warehouse and making investments that allow for the same railway unloading as the other terminal at the Port of Santos, will also be responsible for equipping the facilities to enable shipping from the warehouse to the pier of at least 25,000 tons per day.

Brazil is one of the largest producers of pulp in the world, with this product having the highest annual growth rate at the Port of Santos. After the investments in the terminals, the movement of this type of cargo is expected to jump to five million tons per year.