Infrastructure Minister Says Port of Santos Privatization Will Have Stricter Regulatory Framework

Tarcísio de Freitas, Current Minister of Infrastructure, States That There Will Be Regulatory Rigor and a “Greater Barrier” for Port Operators’ Participation in the Privatization of the Port of Santos

Compared to other government privatizations, the privatization of the Port of Santos will have greater regulatory rigor and there should be “greater obstacles” for port operators to participate in the franchises. This information came from the Minister of Infrastructure, Tarcísio de Freitas, this Monday (5). The event is scheduled to take place next year and involves the largest port complex in Latin America.

• Minister States That Oil and Gas Auctions May Raise R$ 106 Billion
• Rail Network in São Paulo Expected to Attract Over R$ 7 Billion in Investment
• Natural Gas Costs Could Fall by Up to 50% with the New Regulatory Reform Resumed by Paulo Guedes

Privatization of the Port of Santos

Tarcísio says, “At the Port of Santos, I must have greater regulatory rigor and a greater barrier for port operators’ participation in port management. This is not what will happen, for instance, with Itajaí.”

Although the regulatory and participation adjustments are specific to each port, Freitas noted that the privatization model generally should follow the outcome of the company sales and allow the operation of the port.

The infrastructure minister also commented that the images of interested participants in these assets vary. The minister stated that the consortium that may be controversial in the auction could be composed of port operators and investment funds, and these companies have shown “great interest” in these privatizations.

R$ 10 Billion in New Investments Expected in Series of Auctions for Airports, Ports, and Railways This Week by the Federal Government

The Ministry of Infrastructure will hold this week, in terms of assets, the largest auction in the country. In total, there will be 28 auctions, divided into 22 airports, five port terminals, and the East-West Railway (FIOL). The Federal Government plans to raise R$ 10 billion with private investment and create over 200,000 jobs.

The result of the auction of 22 airports could represent an investment of more than R$ 6.1 billion. The auctions will take place on the 7th and will involve a long-term project with a concession of up to 30 years. There will be five leases of port terminals: four are leased at the port of Itaqui (IQI03, IQI11, IQI12, and IQI13) in the state of Maranhão, and the other is leased at the port of Pelotas in Rio Grande do Sul (PEL01).

The first auction of Fiol 1, held by the federal government, is for the connection of the East-West Railway between Ilhéus and Caetité, in Bahia. The concession, spanning 537 kilometers, is expected to guarantee an investment of R$ 3.3 billion, of which R$ 1.6 billion is for the completion of the work.