Industry wants to become free

Presidential decree encourages investors in port systems

Marked by historic delays that resulted in low competitiveness, the Brazilian port structure got a victory that was denied several times to the road modal. The Republic Presidency signed last May the Decree 9048 that will allow reducing bureaucracy and easing operations, concessions and leasing. This will open new doors for the entrance of private investments.

Among the most expected changes, the decree allows the revision of the time chart of mandatory investments—object of desire of road concessionaires—due to “supervening motive, provided that the original economic and financial equation is maintained”. Therefore companies may allege that the economic crisis reduced load transport demand and does not justify immediate investments.

However, this allegation is difficult to be sustained, since that—according to data issued by the Ministry of Transports—the port industry had an increase of 4.4 percent in load handling at the first quarter of this year, compared to the first quarter of 2016. According to the Ministry, the other modals also presented positive figures.

The new regulatory mark aims to make the system more attractive for new concessions, generating investments of R$ 25 billion. At the document’s signature, the Ministry of Transports, Ports and Civil Aviation, Maurício Quintella indicated as its main points the enlargement of contract deadlines. One of the examples is the enlargement of port concessions and leasing from 25 to 35 years, with the possibility of renovation that allows the concessions to reach a total of 70 years.

The new decree allows the leasers to carry out investments in common port areas that were currently restricted to the grantor (dredging, pier, land accesses); to reduce bureaucracy and simplify the granting and investments; to end the obligations of guarantees for designing and building private terminals (TUPs); and to cancel the restriction of 25 percent for the enlargement of TUPs.

For the terminals already leased there was progress in the possibility of adjusting the current leasers to the new deadlines; possibility of relocation of leased areas inside the organized ports; and possibility of investments in common-use infrastructure anticipating tariff incomes.

“We will unblock the authorizations for new terminals. The current paperwork can take currently up to three years to authorize new investments. With this decree, we hope to reduce this time to 180 days”, said Quintela. The decree also eases to increase the area of private-use terminals (TUPs), with no need of new contracts.

Quintella also said that—in addition to establish rules for private investments—the decree will allow anticipating incomes and balancing contracts again. “We will promote competition, and ensure legal safety for contract signing, in a way to be aligned with the modern practices of developed countries”, added him.