RIO DE JANEIRO, BRAZIL – The Companhia Docas do Espírito Santo (Codesa) tender, the first port privatization in Brazil’s history has already been scheduled. Following the approval of the tender documents by the National Bank for Economic and Social Development (BNDES), the tender, which provides for the transfer of control of the company and the concession of the ports of Vitória and Barra do Riacho, will take place on March 25 at B3, the São Paulo Stock Exchange.
With a term of 35 years, renewable for another five years, the contract provides a private investment of US$61.7 million, to which about US$184 million will be added to cover operating costs. More than 15,000 direct and indirect jobs and revenues will be created over the contract’s life.
Codesa is a federal public enterprise under the National Secretariat of Ports and River Navigation of the Ministry of Infrastructure. The company is responsible for the management and commercial operation of the organized ports of Vitória and Barra do Riacho. BNDES developed the model for its privatization through its Project Factory.
The concession for the ports of Vitória and Barra do Riacho is the first to be awarded under the 2013 Ports Act. The project aims to attract private partners with the technical, operational, and financial capacity to make port management more flexible and facilitate investment and the development of new businesses in organized ports.
The concession contract, approved by the National Agency for Waterway Transport (Antaq), also stipulates that the concessionaire must comply with service level indicators to ensure the quality of operations in the port complex.
PORTS OF VITÓRIA AND BARRA DO RIACHO
The Port of Vitória, located in the state capital, has a consolidated cargo portfolio and a favorable location for road and rail access. Studies have shown that cargo throughput could double from 7 million tons to 14 million tons per year during the concession period.
In terms of available space, Vitória alone has 500,000 square meters and 14 berths, most of which are currently operated by the Port Authority. About half of this space is available for the development of new businesses.
The concession of the Port of Barra do Riacho, which specializes in the shipment of cellulose and currently handles 8 million tons per year, offers excellent opportunities for the development of new areas. Of the total 860,000 square meters of available space, 522,000 square meters are “greenfield” (unused). The port has two berths for liquid bulk handling and land access by rail and road.