Alarm in Brazil over new concession pricing structure

The proposed hike is said to be to compensate for losses brought about by the withdrawal of a concession fee.

This has prompted some in the industry to accuse the Brazilian government of giving with one hand only to take with the other.
According to governing body Antaq, concessions for the first private terminals in Santos and the state of Pará to be granted under new ports legislation will be awarded by October 23 at the latest.

In all, 20 terminals are up for grabs, with a basic 25-year concession on offer, although with the possibility to extend this. Santos alone has 11 new terminals scheduled, which will have a combined capacity of 27m tons, although will require investment of around $1.2bn. In total, Antaq says that 130 projects for new terminals are in the pipeline.

Nevertheless, terms and conditions for tenders covering concessions for terminals at the ports of Santos and Belem have met with criticism from port users because of the change in pricing structure. Industry representatives have been highly critical of overall high leasing costs, the amount of concessionaire risk, a lack of clear rules, low levels of competitiveness and potential transfer costs.

In the meantime, 18 permits granted for the establishment of new dry ports have been cancelled as they were issued without competitive bidding taking place, according to sources.