30 Brazilian port terminals operating with expired contracts

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Wednesday, November 5, 2014

Thirty port terminals in Brazil are operating under expired concession contracts after long-term extensions were rejected last year, said port terminals association (ABTP) president Wilen Manteli.

In most cases, the federal government has granted six-month emergency extensions to terminal operators. "The concession holders are now awaiting resolutions that will give them rights to modify their contracts as permitted by previous legislation," Manteli told BNamericas.

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In the meantime, some 10bn reais (US$4.16bn) in investments are scheduled for the terminals, he said.

Last year, President Dilma Rousseff sanctioned the port reform law, MP dos Portos, but vetoed a provision extending pre-1993 public port terminal contracts by 10 years.

As the country prepares for the first wave of port concession tenders, at least four lease agreements in São Paulo state's Santos port are set to expire in the first half of 2015.

Some post-1993 contracts holders, meanwhile, are lobbying for concession extensions of 25 years. Among them are local port terminal operators Libra Terminais, Wilson Sons and Santos Brasil.