Brazil to make port operator contracts longer to encourage investment

Brazil to make port operator contracts longer to encourage investment

The Brazilian government is considering amending public port regulations to give operators longer contract terms, according to Reuters.

It is motivated by the idea that longer commitments would encourage more extensive infrastructure upgrades to the facilities. A similar approach has worked with Brazil’s auctioning of airport and power line licences.

A mooted scenario being looked at would see the duration of an operator’s first licence lengthened from 25 years to 35.

And that would be allowed to be extended for up to 70 years whereas currently the federal ports agency Antaq (Agencia Nacional de Transportes Aquaviarios) allows only one extension of another 25 years.

Abtra (Associacao Brasileira de Terminais e Recintos Alfandegados), the body representing port operators, has said investment is being held back because of ambiguities about expired licences at certain ports.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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