Brazil raises $551m in first port auctions

The government of Brazil has awarded three port concessions in the area of Santos.

The first auction leasing for port areas under the Logistics Investment Program has delivered $551m ($2bn reales) to the government. 

The winning companies are the LDC Brasil consortium, Marimex Orders and Fibria Celulose. 

They will pay in total $114.7m ($430m reales) for the auction and $274m ($1bn reales) for the 25-year concession to the Society of São Paulo State Dock (CODESP). Under the deal, the winning companies will also invest a total of $159.4m ($608m reales) in buildings.

LDC Brasil, comprised of Louis Dreyfus and Cargill, has been awarded a terminal in Ponta da Praia. The area is dedicated to solid granaries of plant origin and the firms will be funding $303m reales ($79.4m).

Marimex Orders has been awarded a terminal in Paqueta region, dedicated to the transport of pulp and paper. The firm will be funding $12.5m reales ($3.2m).

The last terminal to be awarded in this batch is the Macuco area, also dedicated to pulp and paper, and was won by Fibria Celulose, which paid $115m reales ($30.1m). 

These three areas comprise the first phase of the so-called Block 1, and are part of a total package of 93 concessions that the government is planning to rent to private companies.

"For our respect on the contracts, the potential that we have to increase productivity, the potential to increase profitability or the pent-up demand in infrastructure, I am sure that these projects will be successful, "said Nelson Barbosa, Brazil’s Minister of Planning, Budget and Management.