Brazil prepares to lease 8 more port terminals

File image of Brazilian President Jair Bolsonaro. | Reuters

Posted on September 16, 2021

Brazil’s investment partnerships council (CPPI) has recommended the inclusion of eight more port terminals in the federal privatization and concessions agenda.

President Jair Bolsonaro is expected to give final approval soon and combined investments are expected to reach 365mn reais (US$70mn).

“The leasing contracts that are offered by the government are models already well known by market participants. And companies operating in the logistics sector are already well aware of the associated risks and have demonstrated a continued appetite for these assets,” Fernando Fialho, a partner at port asset consultancy Modal Consult and former head of port authority Antaq, told BNamericas.

The terminals are the POA01 in Porto Alegre port, STS53 in Santos port, terminals RDJ06 and RDJ06A in Rio de Janeiro, SSD04 in Salvador, ILH01 in Ilhéus port, MUC03 in Mucuripe port, and IQI14 terminal in Itaqui port.

They are for different brownfield projects, vegetable solid bulk, minerals, liquid bulk, containers, general cargo, and others, the investment partnerships office (PPI) said in a press release.

Studies on leasing of the RDJ06, RDJ06A, SSD04, ILH01, MUC03 and IQI04 terminals are expected to be concluded in November and auctions are planned for next year.

Meanwhile, studies for POA01 and STS53 are completed, with auctions respectively planned for November 2021 and August 2022.

Although investors select infrastructure assets more carefully due to political turmoil and the October 2022 presidential election, port terminals are attracting many players because the segment shows robust performance and offers solid legal security.

Cargo handling grew 8.44% in the January-July compared to the year-ago period, representing 697Mt, according to Antaq.

Source

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