Ministry of Infrastructure Extends Privatization of Itajaí Port, Local Commission to Renew Agreement Seeking Incentives for Port Activities

After the Postponement of the Launch of the Privatization Bid for the Port of Itajaí by the Ministry of Infrastructure, the Municipal Agreement Will Be Extended and a Delegation from the Complex is Seeking Incentives for Port Activity in the Region.

The Ministry of Infrastructure announced the postponement of the launch of the divestment bid for the Port of Itajaí, located in the state of Santa Catarina, and, as a result, a delegation from Itajaí, on the northern coast of Santa Catarina, will be in Brasília on Monday, (07/25), to confirm the extension of the agreement with the municipal authority. However, the delegation is also seeking to secure more incentives for port activity due to the postponement of the privatization of the complex during the meeting in Brasília. 

Privatization of the Port of Itajaí is Postponed by the Ministry of Infrastructure and Municipal Authority Seeks More Incentives for Port Activity with the Extension of the Agreement 

The privatization of the Port of Itajaí is one of the major projects of the Ministry of Infrastructure and the Federal Government for the coming months, but the agency decided to postpone the launch of the divestment bid due to internal issues. Thus, the agreement with the municipality of Itajaí for management will need to be re-signed for the coming years, keeping the complex under municipal authority in the state of Santa Catarina. 

And, to confirm the renewal of the agreement with the municipality, a delegation from the city will go to Brasília next Monday, in addition to seeking more incentives for port activity in the region. “With the end of the delegation in December of this year, it is essential that we confirm the extension of this agreement between the Federal Government and the Municipality to continue managing the Port of Itajaí for another two years, while the divestment bid is completed. Itajaí will heed the Ministry of Infrastructure’s request to ensure the continuity of port activity and the development of our city, region, and Santa Catarina. Our Port is a key piece in the economy of the State and Brazil and cannot be affected by this situation,” emphasizes the mayor of Itajaí, Volnei Morastoni (MDB).

The complex of the Port of Itajaí is one of the main players in the Brazilian port sector and currently handles over 70% of the trade flow of Santa Catarina and nearly 5% of the national total (US$ 16 billion per year), having the largest infrastructure for the movement of refrigerated cargo.

Thus, the municipal authority needs to ensure the necessary investments and benefits so that port activity is not harmed by the postponement of the privatization project for the complex. 

Delegation from Itajaí Seeks to Remove the Termination Clause from the Agreement with the Ministry of Infrastructure to Ensure More Flexibility for the Port Complex

During the trip to Brasília to address issues regarding the postponement of the privatization of the Port of Itajaí by the Ministry of Infrastructure and the renewal of the agreement, the city’s delegation will also submit documents to the National Secretariat of Ports and Waterway Transportation. 

Among them, the main measure to ensure incentives for the port authority is the request to remove a termination clause, which would guarantee the agreement’s duration for the next two years, with no possibility of ending it early.

Thus, the Port of Itajaí would ensure more security for port operators in the search for new business lines until the privatization process concludes in the complex, allowing for the growth of the complex. 

Additionally, the exclusion of this clause, while the Ministry of Infrastructure resumes the privatization process of the complex, would also provide more security to the Port of Itajaí in cases of infrastructure instability, enabling greater competitiveness for the complex in the national port sector for the coming years.