Bidding at Port of Santos raises US$ 36.3 million

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Published in nov 12 2019 - 08:45

The Brazilian government raised US$ 36.3 million with the bidding for two terminals at Port of Santos, this Friday at the São Paulo stock exchange. The area denominated STS 20, designed for salt and fertilizers, has been auctioned by Hidrovias do Brasil for US$ 27.7 million; by its turn, STS 13A, destined for fuels, was won by Aba Infraestrutura e Logística over a US$ 8.5 million bid. The contracts are valid for 25 years with possibility of one same period renewal. The grants are owed to the Brazilian treasury as follows: 25% at the signing, plus five equal-sized annual installments. In an interview after the bidding, Infrastructure minister Tarcisio Gomes de Freitas affirmed that “it is still a possibility” whether the grants for the next biddings may be destined to the ports where the terminals are installed, rather than the National Treasure.

Besides the two areas in Santos, there was also an auction for PAR 01, a terminal destined for cellulose at Port of Paranaguá (in the state of Paraná). Klabin, the largest paper producer, exporter and recycler in Brazil, won the area via a lone proposal of US$ 246.475. In all three cases, the minimum bid was a symbolic R$ 1,00 (approximately US$ 0,25), reason for which the minister described the result as a success. “We had competition indexes this year. It is worth reminding that STS 20 and PAR 01, two of today’s biddings, received no proposals last year. Now we have 26 assets successfully auctioned for in 2019, all with premiums, a clear demonstration of trust”, he said.

Diogo Piloni, national secretary for Ports and Waterway Transport at the Ministry of Infrastructure, highlighted the value of the investments fixed by the new concessions: “It’s over US$ 81.3 million between these two contracts, that will increase even more capacity to the Port of Santos, Brazil’s largest and most important port”.

The CEO of Santos Port Authority, Casemiro Tércio Carvalho, underscored the entrance of a new investor. “The interesting factor is, we have a new player at Port of Santos: Hidrovias do Brasil, controlled by the Pátria trust fund. It is the capital market as a heavy entrant in the infrastructure sector. This is the dynamic we want”, assessed Tércio.

STS 20, won by Hidrovias do Brasil, is more than 29 thousand square meters (approximately 18 square miles). It is currently operational by a transition with the port operator Pérola. The investment prognostic is of over US$ 54 million between installations and the purchase of equipment to improve the current operation. Hidrovias do Brasil already owns logistic operations in the North of Brazil, transporting grains and fertilizers, as well as waterway transport concessions in the rivers Uruguai, Paraguai and Paraná. The company faced two opponents in the bidding: TRH consortium, composed by Rocha Terminais Logística and Harbor Operadora Portuária, and Aba Infraestrutura e Logística, which stopped their bids at US$ 27.6 and US$ 19.7 million, respectively.

By winning STS 13A, Aba Infraestrutura e Logística has increases its participation in the port. The company is a holding that already controls the Adonai (liquid bulk) and Concais (passengers) terminals in Santos. The area of about 34.4 thousand square meters (around 21.3 square miles) is currently inoperative. The company’s estimated investments reach US$ 27.4 million, destined to the implementation of a minimal static capacity of 70.5 thousand cubic meters.

The Brazilian holding Empresa Brasileira de Terminais e Armazéns Gerais, controller of Ageo, has also participated in the bidding with a US$ 12.3 million bid, which wasn’t considered as it went against the dispositions that forbids concentration of installations of a same company in the terminal’s area, known as Barnabé Island. Ageo, that already operates three terminals in the region, could only have their bid validated if it was the sole proposer. Adonai, on the other hand, explores one additional terminal in the island.

Translated from “Leilão de dois terminais no Porto de Santos arrecada R$ 147,5 milhões”.

First published August 13 2019 – 3:56 PM


About Santos Port Authority

Santos Port Authority is a public company connected to the Ntaional Port and Waterway Secretariat (SNPTA) of the Ministry of Infrastructure (MINFRA). It is responsible for the logistic planning and for the administration of the Organized Port of Santos’ infrastructure, the largest of Latin America, through which almost a third of the Brazilian trade balance is moved. With 7,8 million square meters, the port is located 70 Km from the metropolitan region of São Paulo, and contains 43¹ maritime and retroport terminals, distributed among the municipalities that make the two margins of the port’s estuary: Santos (right) and Guarujá (left).

¹Some terminals operate two types of cargo, and have therefore been considered in duplicity.

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