• Categories
  • Archives

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:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Leads Latin America in Raw Steel Production

Brazilian steel exports from January to May grew 31.3% this year, compared with the ...

Brazil: Bahia’s Elite Preventing Indians from Getting Land

The torture case of five Brazilian Tupinambá Indians in the state of Bahia, in ...

Brazil’s Lula Wants More Trading with Algeria

Brazilian President Luiz Inácio Lula da Silva received yesterday, at the Planalto Palace, in ...

Less Profit to Cut Brazilian Amazon Reduces Deforestation by 1/3

Destruction of Brazil's Amazon rainforest has dropped by nearly a third during the last ...

Brazil Pays Off US$ 3 Billion of Foreign Debt

Brazilian stocks moved tentatively higher, as investors refrained from significant buying prior to the ...

Brazil and IMF Discuss How to Grow with Fiscal Responsibility

The International Monetary Fund mission that is discussing a pilot project which would permit ...

Public Admission of Being Gay Lands Brazilian Army Officers in Jail

Two Brazilian Army sergeants were arrested Tuesday, June 3, yesterday at a TV Network ...

A Plan to Juice Up Brazil’s Fruit Exports

Brazilian fruit industries want to produce and export more fruit juice. For this reason, ...

Best-seller Books, Plays and Movies

In a city brimming with earthly delights, one’s thoughts turn to finding a little ...