Brazil gov’t makes $57.8 million in port concessions

The auction of the four port areas, held today (Mar. 22) by the government at the São Paulo Stock Exchange, raised $57.8 million. The opening bid of each area was a nominal $0.26.

The areas located in Cabedelo, in Paraíba state, had a single buyer. The Nordeste consortium, represented by Corretora Ativa, paid $14.3 million for the three areas.

The fourth and last lot, VIX30, located in the Vitória port, was won by the Navegantes Logística consortium, represented by Itaú, the only bidder, with $43.4 million.

Investments forecast for all four terminals add up to $52.4 million. The areas located in Paraíba are concession with a lease term of 25 years classified as brownfield (existing areas to receive operational improvements with more modern and efficient contracts).

Terminal VIX30, in the state of Espírito Santo, is a greenfield project (new area, no physical structure). The lease term is also 25 years, with predicted investment at $33.7 million. The area under lease is 74 m² and is dedicated to the transport of liquid bulk cargo (fuel).

After the auction, Infrastructure Minister Tarcísio de Freitas told the press the government’s expectations were surpassed in the auctions, which shows the confidence the market has in the current administration, which may be positive for the coming auctions in the sector.

“We’re happy with the result because it exceeded  expectations, which re-affirms the confidence the market has in the present government, as the outcome surpassed our expected premium,” the minister declared. “But the premium is not our purpose, which is stimulate and boost investment [in the enterprises],” he added.

Winners in these auctions were the ones who placed the highest bids.