Brazil pushes ahead with Santos port auctions
May 13, 2020 |
Government releases bidding documents for two terminals ahead of an auction scheduled for late August
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Brazil's has released the bidding documents for two port terminal concessions at the Port of Santos with roughly BRL420 million ($71.5 million) in estimated investments, according to the Infrastructure Ministry.
The government plans to hold the auctions for the STS14 and STS14A cellulose terminals on August 28 at the B3 stock exchange in São Paulo.
The STS14 terminal covers 44,550 square meters and is expected to earn BRL2.19 billion in revenues from BRL187 million in investments, according to federal waterways transport agency ANTAQ.
The STS14A terminal, which covers 45,117 square meters, is expected to earn another BRL2.19 billion in revenues from BRL193 million in investments.
Required investments at the two terminals include building new railway lines and warehouses, installing heavy-duty paving, dredging and reinforcing the quay, according to the tender documents. The 25-year contracts can be extended for up to a total of 70 years.
ANTAQ said it received 546 responses during the the public consultation phase for the planned port terminal concessions, a sign that the auctions could receive wide interest from international investors. The Port of Santos in the state of São Paulo is already the busiest container port in Latin America.
The government cancelled a concession auction in late March for a passenger terminal at the port in Fortaleza due to the coronavirus outbreak, but it has stuck with plans to grant other concessions on schedule.
Infrastructure Minister Tarcísio de Freitas said during a webinar in late April the government has received much interest from foreign investors for highway, port and water concessions and has submitted four more port terminals to the federal audit office TCU for analysis.