PPI Board approves project to privatize the Port of Santos

The Investment Partnership Program (PPI) Board approved the project to privatize the Port of Santos, the largest in the country. The studies were discussed and approved at the Council meeting, which took place on Tuesday (20). According to the special secretary of the Investment Partnerships Program, Bruno Westin, the documents and the draft of the auction notice are already with the Federal Court of Auditors.

After consideration by the Court, the public notice is published and interested companies can bid. Also according to the secretary, the auction can take place this year, but now it depends on the procedure and time for analysis by the TCU.

According to the Council’s resolution, the minimum grant amount to buy the port terminal is R$ 3.015 billion, with a minimum contract of 35 years, which can be extended for another five years.

In addition to the initial contribution, the model provides for the payment of 28 installments of fixed contributions to the Union, from the 8th to the 35th year of the concession, in the amount of R$ 105 million each.

The model also determines other investments by the Port, such as dredging works, expansion and modernization of road accesses, implementation, operation and exploration of the Santos-Guarujá Seca Link and the maintenance and operation of the “Itatinga Complex”.

The resolution also prohibits the dismissal of employees in the first twelve months of the concession, without just cause. The PPI provides for the implementation of a voluntary termination program, in addition to mandatory professional development programs.

Other Port Concessions

The Dock Companies in the states of Rio de Janeiro and Pará were also approved to participate in the National Privatization Program (PND). In the case of Rio de Janeiro, services at the ports of Itaguaí, Angra dos Reis, Niterói and Rio de Janeiro will be part of the Program. In Pará, the terminals of Belém, Vila do Conde and Santarém will be part of the process.

Also according to the Secretariat, the National Development Bank (BNDES) will be responsible for implementing and monitoring privatization measures. In addition to it, the National Waterway Transport Agency (Antaq) will monitor the technical studies contracted by BNDES and will approve the concession contract for the port service.