Navigation channel of the Port of Santos is going to be privatized; auction scheduled for 2025

[[legacy_image_358881]] The navigation channel of the Port of Santos is expected to go for auction in 2025. The preliminary meeting to discuss the legal framework for concession, investment value and costs took place on Wednesday afternoon (22nd) at the headquarters of the Santos Port Authority (APS). A public-private partnership (PPP) model and a 25 year contract for management and exploration are being considered, which also includes dredging for deepening and maintenance to 17 meters. In March, APS announced R\$ 6.5 billion for this service.

"The guidance from the minister of Ports and Airports, Silvio Costa Filho, is to prioritize the preparation of the tender to make it available to the market as soon as possible. Our agenda is to hold this auction in 2025," said the National Secretary of Ports and Waterways Transportation, Alex Sandro de Ávila, during an agenda in Santos.

Regarding the dredging for deepening the channel, Ávila stated that it would be divided into two phases. "The dredging up to 16 meters, which will be carried out by APS by the end of this year, and maintenance until 2026. The obligation to go from 16 to 17 meters will be with the concessionaire. In 2026, we should be signing this contract".

The president of APS, Anderson Pomini, the director-general of the National Waterway Transportation Agency (Antaq), Eduardo Nery, and a representative of the Brazilian Development Bank (BNDES) also participated of the meeting.

"This is the kick-off (first meeting) of the concession study of the Santos Port channel together with BNDES. We already have as a parameter the model developed for the Paranaguá Port Channel, which is the first and is at a more advanced stage. BNDES will bring us the best legal framework, investment value and costs, which will allow us to make decisions and progress", says Alex Ávila.

Pomini commented that the idea is to create a timeline with the actions. "BNDES has been with us because, in principle, it was responsible for the legal and economic framework. We are attentive to what may happen in the canal concession model that was built for Paranaguá, a great laboratory for us".

The president of APS emphasizes that the delivery of the service for 25 years cannot have mistakes. "We seek efficiency, as well as deepening and the implementation of technology services so that the Port of Santos turns even more competitive, being able to receive ships of 366 meters in length every day and at any time. Today, we receive, but we depend on the tide's luck", he recalls.

Eduardo Nery explained that the agency conducts the bidding process. "The studies are prepared by APS in conjunction with the Ministry (of Ports). Antaq approves these studies and conducts the entire bidding process, mainly from the perspective of tariff regulation".

Nery exemplified: "It is up to Antaq to regulate the tariff to be charged for the use of waterway access and to oversee the concession contract according to the performance indicators established in the contract regarding the depth of the channel and even discounts on tariffs if the performance is not achieved, so that the service level is reached".