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Brazil to hold roadshow for US$590mn Itajaí port concession

Bnamericas Published: Friday, April 08, 2022
Brazil to hold roadshow for US$590mn Itajaí port concession

The Brazilian government will hold a roadshow from April 12-14 for the 2.8bn-real (US$590mn) concession of the Itajaí port in Santa Catarina state.

Itajaí is the country’s second largest container port and handles almost all the southern state's exports.  

"The event will consist of holding one-on-one meetings of up to one hour, pre-scheduled with registered participants," federal investment partnerships program PPI said in a press release about the roadshow meetings, which will be held online. 

The government has not yet set a date for the auction, which is expected to see the participation of port operators and investment funds. 

"All infrastructure associated with activities linked to commodities, such as ports, railways and certain highways, attracts the interest of funds. Brazil is a global powerhouse in terms of various commodities and this will continue for many years to come, regardless of domestic and global crises," Clovis Meurer, founder of Brazilian private equity and venture capital association ABVCAP, told BNamericas in a recent interview. 

Last month, the government held a successful auction of a concession for Espírito Santo state port operator Codesa, with Quadra Capital outbidding investment fund Vinci Partners with 106mn reais compared with the latter’s 101mn-real bid. 

"[Investment funds’ interest] is likely to show other participants in the port sector that its assets are very attractive and that the upcoming auctions may be processes that involve more diversified stakeholders, not just investment funds," Camilla Affonso, a partner at infrastructure and investment consultancy Leggio Consultoria, told BNamericas. 

Itajaí is expected to generate stronger interest than Codesa as it offers more expansion potential. The government has therefore set the minimum bid at 603mn reais. 

The concession is for a contract of 35 years, which can be renewed up to 70 years. 

Of the 2.8bn reais that the concessionaire will have to invest, 920mn reais will be invested during the contract’s first three years to develop a port terminal, purchase equipment and improve the berthing and waterway systems, PPI said. 

Along with Codesa and Itajaí, the government plans to auction two more port concessions this year, one for the Santos port authority and the other for the São Sebastião port, both in São Paulo state.

In the first two months, the country's ports registered 180Mt of cargo moved, up 1.8% from the previous year, according to waterways regulator Antaq.

Besides container cargo, the main types of bulk cargo handled by the ports are iron ore, oil and soy.

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