+55 11 3041 5135

Brazilian government starts the privatization of ports in the country, creating new business opportunities

The Brazilian Government started the procedures for the privatization of CODESA (Companhia Docas do Espírito Santo), which is responsible for managing the Ports of Vitória and Barra do Riacho, both of them strategically positioned in the State of Espírito Santo, in the Southeast of Brazil.

 

The winner of the bid will assume the concession of both ports for 35 years and should invest BRL 1.3 billion over this period. The interested parties must present their proposals by March 22, 2022, from 9 am to 12 pm (Brazilian time), and the Public Auction session is scheduled for March 25th, 2022, at 2 pm (Brazilian time). Brazilian and foreign legal entities, including financial institutions, Equity Investment Funds (“FIP”), and supplementary pension plan entities, acting alone or in a Consortium, may participate in the bid.

 

It is expected that the privatization of CODESA results in an increase in the movement of cargo through the Port of Vitória from 7 million to 14 million tons per year. In addition, the winner of the bid will be entitled to commercially explore new areas of the Barra do Riacho port, since, from the total area of 860 thousand square meters, 522 thousand square meters are currently greenfield and could be destined for other activities in the port zone.

 

The next Brazilian port to be privatized will be the Port of Santos, which is the largest port complex in Latin America and currently handles around 145 million tons of cargo per year, which could reach 290 million tons after privatization. The publication of the bid invitation is initially planned for November 2022 and investments in the amount of BRL 16 billion are expected.