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Brazil’s port concession auctions to deliver infrastructure improvements

Brazil’s recent port and terminal concession auctions have netted the government much-needed funds for infrastructure development, as well as commitments from private investors to contribute to that development.

On Friday, Brazil’s National Waterway Transport Agency (ANTAQ) auctioned concessions for three areas at northern ports, with winning bids worth $7.4m.

Caramuru Alimentos acquired the 25-year concession for an area in the Port of Santana for $1.1m. The company committed to port improvements worth almost $8m over the term.

A 25-year concession at the Port of Fortaleza was purchased by Tergran – Terminais de Grãos de Fortaleza for about $190,000 and a commitment to spend $9m on infrastructure.

Intermarítima Portos e Logística won the auction for an area in the Port of Salvador, with a bid of $6.1m for 10 years and a pledge to invest $3.5m.

Director General of ANTAQ Eduardo Nery said, “the federal government is providing the port sector with more infrastructure with the leasing program, attracting private investments, generating competitiveness, income and employment.”

On Friday, the federal government also signed contracts worth about $115m for five port terminals that were auctioned earlier this year.

In a Reuters article on August 16, Brazil’s Infrastructure Minister, Tarcísio Freitas, said, “We’re going through a pandemic and many companies are having difficulties with cash. With some projects, it’s natural that interest is restricted to just a few groups. It’s important to bring in those who are qualified.” The limited response caused by Covid-19 could lower the amount Brazil realizes from its concession plan, which the government had forecast at almost $50b.

Kim Biggar

Kim Biggar started writing in the supply chain sector in 2000, when she joined the Canadian Association of Supply Chain & Logistics Management. In 2004/2005, she was project manager for the Government of Canada-funded Canadian Logistics Skills Committee, which led to her 13-year role as communications manager of the Canadian Supply Chain Sector Council. A longtime freelance writer, Kim has contributed to publications including The Forwarder, 3PL Americas, The Shipper Advocate and Supply Chain Canada.
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