Public consultation on privatization of Santos Port opened

Brazil’s national waterborne transport regulator Antaq opens this Monday (January 31) a public consultation to receive suggestions and contributions on the privatization of the Port of Santos, in São Paulo state. Interested parties can express themselves until March 16, exclusively by electronic form available on the internet.

Concession

According to Antaq, the concession period for the port terminal will be 35 years, renewable for another 5 years. The planned investments to adapt the port's infrastructure total BRL 16 billion ($ 2.9 billion dollars). These investments must be made throughout the term of the contract.

The initial grant will be BRL 1.383 billion ($ 256 million dollars), “plus a variable contribution to the Granting Authority equivalent to 2.25 percent, per year, on the consolidated gross revenue,” reports Antaq.

The future concessionaire shall also be responsible for paying an annual inspection fee of BRL 6.422 million ($ 1.190 million dollars) to Antaq. This amount will pay for the inspection and regulation work in the concession model.

Also according to Antaq, lessees, holders of Transition Contracts, shipowners, maritime transporters, port operators, Private Use Terminals of the port complex, railroad concessionaires operating in the Port of Santos, as well as companies belonging to the economic group will be able to participate in the bidding process, “but with a share limitation of 15 percent for individual participation and 40 percent when they are part of a consortium with other groups of the same nature.”

According to the model proposed by Antaq, a financial contribution of approximately BRL 3 billion ($ 556 million dollars) is foreseen, to be paid by the future concessionaire, for the construction of a tunnel that will connect the municipalities of Santos and Guarujá.