Brazil Loosens Its Grip on Airports and Ports Privatizing and Leasing Facilities

Galeão Airport in Rio de JaneiroThe Brazilian government is expecting to raise US$ 1.3 billion with the leasing of facilities at its ports in the states of Pará and Santos, São Paulo, said government officials. The government announced it planned to offer 30 new areas for investment at the locations, expanding and modernizing terminal facilities.

“We want more cargo and cheaper and faster operations.” said Ports Minister Leonidas Cristino.

The facilities are scheduled to be auctioned for lease on November 25. The government is expecting some 1.6 billion reais in investments at 20 facilities in the state of Pará, and 1.4 billion reais in investments at 11 facilities in Santos.

With the leases, the government seeks expansion of port operations for grains, fertilizers, containers, cellulose and liquids.

Ports minister Cristino said the government would also focus on expanding railroad access to the port terminals. “We want the larger amount of capacity to be met by trains to reduce problems with truck traffic,” he said.

In all, the new investments should increase the ports’ cargo capacity by 48 million tons annually.

Brazilian presidential chief of staff Gleisi Hoffman, also present at the announcement, said the leasing contracts would include a reference rate of return of 7%.

“The rate of return should be around 7%, but it could be much more than that if the conditions of the contracts are adequately met,” she said.

Financing terms for the investments will be set at Brazil’s TJLP long-term interest rate plus 2.5 percentage points, over a period of 20 years.

Airport Concessions

An auction to privatize airports in Rio and Belo Horizonte, two host cities for the 2014 World Cup, will be held on October 31, Brazilian authorities have announced.

Presidential chief of staff Gleisi Hoffmann announced the date for the auction to sell concessions to run. Rio’s Galeão airport and Belo Horizonte’s Confins at a Brasília press conference.

Officials said bidders will have to make a minimum offer of 2.1 billion dollars for the Galeão concession and 450 million for Confins,

In February 2012, 20-year concessions were granted to manage three airports: two in São Paulo and one in Brasília, breaking the monopoly of Infraero, the federal agency that runs more than 70 airports.

Brazil, a continent-sized country of 196 million, has moved to modernize its aging and congested airports in preparation for handling tens of thousands of tourists expected for next year’s World Cup and the 2016 Rio summer Olympics.

Mercopress

Tags:

You May Also Like

Brazil Wants to Restart Work on Nuclear Plant Paralyzed in 1988

The director of Planning, Management and Environment at Eletronuclear – the Brazilian company that ...

Castor oil plant in Brazil

Brazil Invites You to Plant the Oil of the Future with Us

The 21st century will be marked by a crucial debate: how can we make ...

Brazil Spends Over US$ 400,000 in Books by Indian Authors

Brazil’s Ministry of Education (MEC) allocated US$ 414,000 (1 million reais) from the Literate ...

Gabrielli Cristina Eichholz was raped and killed inside a church in Brazil

Brazil Looks for Rapist Who Strangled 1-Year-Old Girl Inside Church

The Brazilian police have already interrogated without success over 20 people in connection with ...

Sinatra Revealed Me the Sounds of Brazil

Bossa nova combines the textures and rhythms of samba, jazz, 20th century classical music, ...

Brazil: Rush in Congress for Biosecurity Law

The Brazilian government once again placed the issue of Genetically Modified Organisms (GMOs) in ...

Whole Indian Tribe in Brazil Falls Ill for Lack of Water and Sanitation

Since the beginning of the year, the 65 families of Brazil's Maxakali people who ...

Better Control Brings 14% More Tax Money to Brazil Treasury

From January until May this year, the Brazilian federal government collected, in taxes and ...

US Tourists Still Number 1 in Brazil

Rio de Janeiro remains Brazil’s most popular tourist destination. And Americans continue to be ...

Brazil: Indians Unhappy with Lula

Indigenous peoples and their allies want indigenous policy of the Lula administration to be ...