Brazilian Government Unveils New Plan for Privatization and Expansion of Ports
The Brazilian government recently announced a bold initiative for the privatization of its port sector. The new plan is expected to garner around $3 billion in private investments, leading to the upgrade of the country’s ports.
The plan involves investments in more than 50 listed projects that would involve a collective investment of around $3 billion from the private sector.
Among the upcoming events, the government plans to auction off 35 port terminals, with 22 of these auctions expected to take place before the end of 2025 and three auctions to take place in the last month of 2024 alone.
Five of these leases are for the Port of SANTOS, the largest port in Brazil. In addition to this, there are also concessions to be offered for the three terminals in the port and for the navigation channel. One of the terminals, the ITG 02 at Itaguai, is slated for auction this month.
In a bid to attract private investors, the Brazilian government is offering competitive lines of credit and tax rebates. The regulatory landscape for the privatization of these assets has also been streamlined, reducing the overall time of such paperwork by 3 months. Furthermore, the Merchant Marine Fund has earmarked 30% of its budget for this privatization effort of the port sector. This plan, through the modernization and expansion of the port infrastructure, is expected to boost Brazilian trade and its competitiveness in the international landscape.
