Brazil to auction over US$200mn in port concessions on October 22

Brazil’s federal government has scheduled a bidding process for four port contracts on October 22, targeting investments of up to 1.12bn reais (US$210mn) in a sign of confidence that the impact of US-imposed tariffs on trade will be overcome.

The auction, to be held on the B3 stock exchange, will include the concession of the access channel to the Paranaguá and Antonina port complex in Paraná state, as well as leasing contracts for terminals in Rio de Janeiro, Rio Grande do Sul and Alagoas states, according to the ports and airports ministry.

Investors have been closely watching the policies of Donald Trump’s second US administration, which imposed tariffs on a number of countries. Although Brazilian products have been hit with tariffs of 50%, the impact has been partly cushioned as many key exports to the US were included in a list of tariff exemptions released this month.

“In the first half of the year, port activity in Brazil reached record levels, largely due to exports to the United States being brought forward to avoid the new tariffs. During some months of the second half, there is likely to be a decline in volumes transported through ports because of that,” Anderson Pomini, president of Santos port operator SPA, which administers what is Brazil’s largest port, told BNamericas during a recent press conference.

“However, in the medium term, the outlook is for robust port activity, since Brazilian exports are quite diversified, both in terms of destination countries and product types,” he added.

As investors and business leaders gain familiarity with the Trump administration’s trade strategy, sentiment toward Latin American assets is expected to improve. Infrastructure sectors such as ports, already close to full capacity, are particularly well-positioned to attract investment.

“We’re not seeing a slowdown in energy and infrastructure. Companies are planning around potential cost increases, but projects are still moving forward. In M&As, though, there is more uncertainty,” Christian Hansen, head of law firm White & Case‘s Latin America group, told BNamericas.

“It’s harder to price transactions in industries directly affected by tariffs, since future revenues and costs are less clear. That has slowed activity somewhat. But overall, I don’t think it will be negative. It’s more a matter of adjustment. Over time, businesses will adapt and valuations will stabilize. We’ll likely see a rebound in M&A once people gain more experience navigating the new rules,” he added.

The contracts

The largest contract to be offered at the October 22 bidding process is a concession for the access channel to the Paranaguá and Antonina complex, which receives 2,600 ships per year and mainly handles solid bulk cargo such as soybeans and animal protein.

The concession is designed to improve efficiency and increase vessel calls. As part of the project, the channel draft will be deepened from 13.5m to 15.5m, allowing the port to receive larger ships. Each additional centimeter of draft enables a further 60t of cargo per vessel.

The 25-year concession covers dredging, demolition work, signaling, bathymetry and environmental monitoring, with the possibility of an extension for up to 70 years.

It will be the first bidding process for a port access channel in Brazil, and the federal government intends to replicate this type of contract in other ports.

“The criteria established for the Paranaguá auction will serve as a model for other access channel auctions scheduled to take place later this year, including those for the port of Santos (São Paulo state), Itajaí (Santa Catarina state), and Bahia and Rio Grande states. The process for Itajaí is currently being submitted to federal audit court TCU,” the ports and airports ministry said in a release.

The other three terminals are:

RDJ07, at the port of Rio de Janeiro, will receive 99.4mn reais for specialized oil handling infrastructure under a 25-year lease.

POA26, in the port of Porto Alegre, will receive 21.1mn reais for a 10-year lease for handling and storing solid bulk cargo.

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