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Tuesday, March 2, 2021

Brazil to offer 17 port contracts this year - BNamericas English

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Brazil to offer 17 port contracts this year - BNamericas
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Brazil to offer 17 port contracts this year

To take advantage of positive momentum in the ports sector, Brazil is planning to offer a series of assets.

Auctions for at least 17 terminal leasing contracts are scheduled for this year, plus the concession of Espírito Santo state’s port administration (Codesa) and the Codesa-administered Vitória and Barra do Riacho ports.

“Major auctions to offer port terminal leases will happen this year and, most importantly, we will have the auction of Codesa that will attract many interested parties and large investments to the sector,” infrastructure minister Tarcísio Gomes de Freitas told a webcast.

"After the Codesa auction we will hold auctions for the concessions of the Santos, São Sebastião, Itajaí ports administrations, as well as Bahia's port authority Codeba. We are going through a new revolution in this sector that will increase the resilience that the sector already demonstrated in a year of pandemic," the minister added.

Even though analysts expect deteriorating overall economic performance due to the pandemic, the port segment will remain attractive. 

"The Brazilian port sector has a consolidated model in place, offering assets to investors and even in the wake of an economic scenario that is still difficult this year due to the continuity of the pandemic. The segment will continue to attract investors with the offer of leasing contracts and also in terms of concessions," Fabrizio Pierdomenico, a port sector specialist at Agencia Porto Consultoria, told BNamericas. 

PORTS PERFORMANCE

Brazilian ports handled 1.15Bt of cargo last year, up 4.2% from the previous year, according to waterways regulator Antaq.

Santos port once again moved most cargo,114Mt, followed by Paraná state’s Paranaguá port, with 52.1Mt, and Itaguaí, in Rio de Janeiro state, with 45.7Mt.

Iron ore was the most transported cargo with 356Mt, followed by oil and derivatives with 262Mt. Container transport totaled 118Mt and soybeans 104Mt.

Asian commodity demand will likely contribute to positive performance this year.

"We do not see signs of cooling demand, neither of agricultural commodities nor of metal commodities," added Pierdomenico. 

The BR do Mar bill to boost cabotage investments along the coastline was already approved by the lower house, and senate approval is expected soon.

The government also aims to encourage cargo transport via waterways to reduce dependency on highways. Trucks transport two-thirds of cargo in the country, which puts the sector in a powerful position to demand lower fuel prices and threaten strikes.

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Brazil to offer 17 port contracts this year - BNamericas English
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