Posted on July 7, 2025
The Brazilian government approved a financing mechanism for a concession planned for the access channel to the Paranaguá and Antonina ports in Paraná state.
The government will authorize debt financing of 1.09bn reais (US$185mn) from the merchant navy fund, or FMM, which is managed by the ports and airports ministry, a ministry spokesperson told BNamericas.
Companies interested in the concession are not obligated to use the FMM financing line.
However, the interest rates on the line of credit are highly competitive. Loans from the fund are based on the long-term interest rate (TLP), which currently stands at an annual 7.54%, plus inflation, which is around 5%. By comparison, the country’s benchmark interest rate, the Selic, is at 15% and traditional bank financing carries a spread over the Selic.
The government is planning to hold the auction for the concession later this year, but has still not set a precise date, according to the spokesperson.
The company or consortium that wins the auction will be responsible for managing the asset for 25 years, with the possibility of an extension for up to 70 years. Mandatory works include deepening the draft, which is expected to increase from 13m to 15.5m.
The concession will be the first for a port access channel in Brazil and Latin America.
The government intends to use the model for other concessions that could be auctioned later this year, including for Santos, the country’s busiest port in São Paulo state, as well as the port of Itajaí in Santa Catarina and ones in Bahia state.
The main objective is to ensure access for larger ships to address logistical bottlenecks faced by the country’s exporters. According to estimates, each extra centimeter of draft in the access channel corresponds to an increase of 60t of cargo.
