Controversy continues to court Brazilian port reform

However, port unions at Santos, Paranagua and Rio de Janeiro immediately declared a two-day strike against the new measures – albeit with a limited impact on traffic. They were protesting that new ports would be able to openly contract non-unionised labour and also undermine their existing rights.

It had been estimated that if the measure had not been adopted by parliament, Brazil would have made losses in the region of $18bn-$25bn in lost foreign trade. Nevertheless, academics countered claiming that it could also result in multinational shipping lines eventually controlling the ports’ industry by building dedicated terminals.

According to the Ports Commission, a body that brings together 18 operators, businessmen and port users, the new legislation will increase the cost of hiring labour at terminals in existing public ports by 30%. It says the main problem is the complexity of the hiring system, which will raise costs.

Currently, public terminals are free to hire dockworkers from the open market, if there are no contract workers available. However, in future, they will have to hire additional dockers through the managing agency, which will increase the expense.