Brazil awards three port terminal concessions

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Brazil awards three port terminal concessions

Brasil has recently awarded a total of three port terminal concessions at the Santos port, the busiest port in South America.

The winning bidders in Brazil's first auction of port terminals under the 2012 law were the following:

  • LDC Brasil consortium, a joint venture between multinationals Louis Dreyfus Commodities and Cargill;
  • Marimex Despachos; and
  • Fibria Papel Celulose.

Helder Barbalho, the minister of the Special Ports Ministry (SEP) and Brazil's president DIlma Rousseff said the auction was a success but, in fact, only five companies made a bid for the three terminals. Not many international investors participated in the auction process.

The LDC Consortium will pay a total of R$1.32 billion (US$338.8 million), of which R$303 million (US$77.8 million) has to be invested in the terminal. The consortium will obtain the right to operate a grain terminal at Ponta da Praia for a period of 25 years.

Marimex Despachos will pay a total of R$307.5 million (US$78.9 million), of which R$12.5 million (US$3.2 million) has to be invested in the terminal. The consortium has won the auction for a 25-year concession in the Paqueta area of Santos. The terminal will be used for paper and pulp transport.

Fibria Papel Celulose will pay a total of R$439.12 million (US$112.7 million), of which R$115 million (US$29 million) has to be invested in the terminal. The consortium has won the auction for a 25-year concession in the Macuco quarter of Santos.  The terminal will be used for paper and pulp transport.

The three port terminal concessions are part of a package of a total of 93 that the Brazilian government plans to auction off to private companies.

According to sources, the government had plans to auction off a fourth terminal area in the northern state of Para, but finally it scrapped the plans due to a lack of interest.

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