Brazil’s Aquatic Transportation Agency approves Codesa’s first port privatization project

RIO DE JANEIRO, BRAZIL – Brazil’s first port privatization project took an important step forward on Friday, January 14, with the National Agency of Aquatic Transportation (Antaq) approval of the tender announcement for Companhia Docas do Espírito Santo (Codesa).

The concession contract will have a term of 35 years, extendable for another five years, and provides for US$60.4 million in private investments, in addition to approximately US$180 million to cover operating expenses.

With the approval, it is expected that the public announcement will be formalized by BNDES in the Official Federal Gazette (DOU) next week, and in March, the bidding will be made on the B3, the São Paulo Stock Exchange.

The bid covers the port’s administration and the indirect operation of the facilities of the organized ports of Vitória and Barra do Riacho. More than 15,000 direct and indirect jobs and an income effect will be generated throughout the concession contract.

With the privatization of Codesa, the port of Vitória is expected to double cargo handling from 7 million tons to 14 million tons per year. For the Barra do Riacho port terminal, the expectation is to explore new areas since 522,000 square meters are greenfield out of a total of 860,000 square meters. It corresponds to land destined for new projects planned and executed from scratch.

DETAILS OF THE BIDDING PROCESS

The privatization project also brings the amount of US$59 million for the sale of Codesa shares held by the Union, as determined by the Court of Accounts (TCU) for the treatment of the value of the company’s equity, including unamortized investments. The minimum subsidy is estimated at US$86.7 million.

It will be allowed to participate in the bidding consortium with up to 15% of the capital individually or 40% jointly. The participation of concessionaires and private terminals that use the navigation channel of the ports, private operating terminals located in Espírito Santo State, and that mobilize relevant cargo to the Port of Vitória is prohibited.

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