SOUTH AMERICA

Legal challenges dominate Brazilian port reform

13 years ago

Since Brazil introduced major changes to ports legislation on June 5, at least 20 legal actions involving the Federal government and port terminal operators have been filed.

In São Paulo, disputes are mostly linked to the inability of incumbent operators who received their concessions before 1993 to obtain extensions to these upon expiry.

Local legal experts suggest that the number of lawsuits will grow by 20% before the end of the year.

Of the 11 concessions to be offered at the port, the majority relate to terminal contracts that have already expired, some of these having been awarded prior to 1993. Of the 27 terminal operators represented by the Brazilian Association of Port Terminals (ABTP), 20 are now embroiled in legal action, with more set to follow.

A port consultant analysing three of the eleven tenders to be offered by the port of Santos found no fewer than 93 inconsistencies.

The draft documents in question were prepared using information supplied by EBP, a company formed by banks and mandated by the Ports Secretariat (SEP) to carry out the work. However, the criteria and methology used has been widely criticised by consultants, as well as companies and businesses interested in investing in Santos.