Infrastructure / Public Procurement

Brazil: Federal Audit Court approves the Model for Concession of Eight Public Port Terminals

On September 30, 2015, the Brazilian Federal Audit Court (“TCU”) approved the model proposed by the Brazilian Federal Government for the concession of eight public port terminals located in the States of São Paulo and Pará.

The proposed model involves using the highest grant payment as the criteria for the selection of the winner bidder during the public procurement proceeding phase. Also, the winners will be granted the right to commercially explore the terminals for a 25-year period, which may be renewed by an additional 25-year period.

Regarding São Paulo State, the terminals are located in the Port of Santos, specifically in the areas of Macuco, Paquetá and Ponta da Praia. The terminals in Pará State, by their turn, are located in the cities of Barcarena, Belém and Santarém. Exception made to the terminals in Macuco and Paquetá, which are focused on cellulose, all the terminals are focused on solid bulk and grains.

The Federal Agency of Waterway Transportation (“ANTAQ”) will be responsible for carrying out the public procurement proceedings, in the format of public auctions. The contracts must stipulate minimum investments, minimum productivity rates and minimum static capacity.

The public port terminals will be the first ones to be offered to the private initiative for operation after the new Ports Law came into force (Federal Law No. 12,815/2013).

In view of TCU’s approval of the model proposed by the Federal Government, the eight public port terminals located in São Paulo and Pará are expected to be auctioned as early as December 2015.

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