Equipment spending boom in Brazil?
Seven Brazilian container terminals are investing US$82.8m in new equipment to expand capacity on average by around 30%. In part, they are taking advantage of the Reporto programme, which waives federal taxes on national and imported assets for use by ports. This tax break, which will end in 2007, is estimated to save between 30% and 40% of the total cost of any investment.
The companies are worried that the present financial chaos afflicting the port authority will prevent them from eventually being paid.
At the port of Santos, the Santos Brasil and Rodrimar terminals are investing US$32.5m; Tecon Suape, US$17m; Tecon of Rio Grande, US$16m; Paranagua Container Terminal (TCP), US$12.6m; Tecon Itajai, US$3.2m; and Tecon Salvador, US$1.5m.