Privatization of Brazilian Ports: Experts Say Transition of Shipbuilding Industry Could Be Beneficial

Written by Valdemar Medeiros

Published on 24/11/2020 at 12:15

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During FGV Event, Experts Discussed Why the Privatizations of Brazilian Ports and the Transition of the Naval Industry Are Positive for the Economy

On July 21 of this year, FGV held a live event on its YouTube channel, focusing on the privatizations of ports and the transition of the naval industry, featuring the participation of Fábio Abrahão (Director of Infrastructure, Concessions and PPPs at BNDES), Patrícia Lascosque (Superintendent of Ports at Suzano and President of the Association of Private Port Terminals – ATP), and Ricardo Arten (CEO of Brazil Terminal Portuário – BTP and Regular Advisor of the Brazilian Association of Container Terminals – ABRATEC).

Privatizations of Ports and the Transition of the Naval Industry

As previously stated by the Ministry of Infrastructure, the next frontier for the port sector is seeking a more effective model through Privatizations, with flexibility and increasing the capacity for investments through private resources for the logistics of Brazilian ports and preparing the ground for the transition of the naval industry.

Thus, Privatizations would be a definitive turning point in this process, which includes the initiation of studies for the privatizations of ports, one example being the port of Santos, which is responsible for 28% of Brazil’s trade flow.

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Development and Modernization of the Naval Industry and Brazilian Ports

The development and modernization of Brazilian ports and the naval industry are of utmost importance for the country’s economic growth, considering that the demand for maritime trade is expected to triple between 2015 and 2050, according to projections from the Organization for Economic Cooperation and Development (OECD), and ships will account for more than 75% of global cargo transportation.

Currently, the waterway mode is responsible for more than 13% of the cargo transportation matrix in Brazil, according to the National Land Transportation Confederation (CNT) – with about 9% of cabotage and 5% of river transport.

A simulation for the year 2025, from the National Logistics Plan (PNL) of the federal government, indicates that there will be a recovery in the balance of cargo transportation matrix, particularly with strong investments in railways; however, waterway transport, cabotage, and river transport will remain at their current level, potentially boosted by privatizations.

Privatization of Brazilian Ports: Experts Say Transition of Shipbuilding Industry Could Be Beneficial

During FGV Event, Experts Discussed Why the Privatizations of Brazilian Ports and the Transition of the Naval Industry Are Positive for the Economy

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