• New Bids for the Concession of Port Terminals
  • March 23, 2010 | Authors: Marcela Britto Correa Figueiró; Mayra Mega Itaborahy; Bruno D. Werneck
  • Law Firms: Mayer Brown LLP - São Paulo Office ; Mayer Brown LLP - Rio de Janeiro Office ; Mayer Brown LLP - São Paulo Office
  • The Brazilian Agency for Sea Transport (ANTAQ) has announced that, in April, bids will be taken for the port terminals whose concession contracts are expiring. Contracts expire in 2013 for approximately 100 terminals throughout Brazil.

    ANTAQ, a regulatory agency that reports to the Ministry of Transportation, is in charge of authorizing, regulating and overseeing sea transport activities and infrastructure.

    According to Law 8.630, as of 25 February 1993 (Ports Law), port premises can be designated for public or private use. The above-mentioned bids relate to the ports for public use, which are those built within the areas of the so-called “Porto Organizado.” Such areas are determined by federal law, and are meant to house the ports that are built and furnished directly by the Federal Administration or conceded by one of these authorities: Companhia Docas, State Administration, Municipal Administration, or private entities.

    According to Decree 6.620/2008, the concession periods are fixed at 25 (twenty five) years, and can be extended once, for the same period. The maximum legal term is 50 years. Further, the concessions will be granted only to companies that can demonstrate technical and financial competence.

    The terminals that will be bid on in April are located in Santos (São Paulo) and Imbituba (Santa Catarina) ports.

    According to Decree 6.620/2008, the successful bidders will be required to furnish, modernize and expand  the terminals conceded. In the first round, for instance, the company that wins the contract for the  Porto de Santos terminal (currently granted to Vopak) will be required to make a minimum investment of R$ 10,8 million and to disburse R$ 33,8 million on standard-site improvements (concerning the payment of pre-existing structure).

    In addition, the new contract holder will have to pay a R$ 2,5-monthly-leasing fee per ton of traffic, plus a fee of R$ 2,5-equity-value per square meter used.   

    Link to the ANTAQ announcement and to Decree 6.620/2008: