The company met with representatives of the Ministry of Infrastructure in France and stated that it intends to invest BRL 10 billion, at least half of which in participation in auctions
The investment director of Terminal Investment Limited (TiL), Patrício Junior, and the Minister of Infrastructure, Marcelo Sampaio, met last weekend in Paris, France, during a corporate event that the portfolio is promoting in Europe. The purpose of road show is to attract international investors to ongoing privatization projects in Brazil. And good news for port terminals will be brought, further increasing the government expectations regarding the privatization of the Port of Santos.
TiL's investment director, Patricio Junior, said that the company plans to invest R$ 10 billion in Brazil over the next five years. Brazil's ambassador to France, diplomat Luís Fernando Serra, was present and witnessed the promise.
According to Patricio Junior, of the R$ 10 billion, half is destined for projects at Portonave port terminal administrators, in the city of Navegantes in Santa Catarina; at BTP, in Santos (SP), and at Multiterminais, in Rio de Janeiro. The other R$ 5 billion, still according to the TIL executive, is to fund projects that are in the bidding process of the Ministry of Infrastructure.
Thus, the company seeks to expand its business portfolio in Brazil and, furthermore, should participate in the competition in privatization processes in the area of port terminals that are taking place, including the STS-10, the mega container terminal in Santos (SP), where the company already operates and therefore is feared for possibly promoting a “market concentration”.
Competition law and job creation
Several associations that represent port terminal companies in Brazil defend the restriction of
large international competitors that already operate in Brazil in sector auctions, and this has caused controversy: to bar or not to bar?
STS-10 will be the largest container port terminal ever tendered in Brazil, with an area of more than 600 square meters. The expectation is that the space will have the capacity to concentrate and handle 2 million TEUs a year.
The government itself would have already tried to restrict the participation of Brasil Terminal Portuário, controlled by TIL, in addition to Maersk, the largest container operator on the planet, so that there would be no market concentration, since these two already operate in the place.
But in a recent decision, the Administrative Council for Economic Defense (Cade) denied the injunction that requested the restriction and made it clear that there are post-auction control measures that must be applied in case of competition and concentration risk.
The measures must be foreseen in the notice and in the future concession contract. The Federal Government plans the STS-10 auction in Santos for the fourth quarter of 2022, with the public notice being published by September.
TiL's director of investments, Patricio Junior, argues that investors cannot be punished for “possibilities”. And that there must be a regulation that he calls mature, responsive and capable of mirroring the best practices adopted in the international market in Brazil.
“We want to have the opportunity to compete. After all, we are taking investments to Brazil to improve a sector that is fundamental for the country's development”, says Patrício Junior. Over two decades we have already created more than 10 jobs and we are going to create more. We participate in the development of the regions where our companies are located”, he says.
The executive also boosted the morale of government representatives by saying that “good investment opportunities are being created in Brazil. The policies implemented for the infrastructure sector are very well formulated and technically supported, in addition to the ease of capital movement, which is another attraction for international investors”, he says.
