São Paulo – Brazilian ports should receive investment of 17.8 billion Brazilian reals (US$ 10.7 billion) from 2011 to 2014, according to a study by the Brazilian Development Bank (BNDES). The need for more container terminals, works under the Growth Acceleration Programme (PAC), mainly in the dredging of canals for access to ports, and investment of private capital in port terminals are among the main motivators for investment, explained the manager of the Logistics Department of the Infrastructure Area at the BNDES, Dalmo Marchetti.
The expansion of container terminals, for example, is greater than the expansion of the Brazilian economy, said Marchetti. "Ten percent a year over the last ten years." The ports to receive investment in the area include Paranaguá (in Paraná), Santos (in São Paulo), Rio Grande (in Rio Grande do Sul) and Suape (in Pernambuco). "Brazilian trade is rising, and the throughput of cargo that did not use to be traded has started," said Marchetti, recalling products like granulated plastics and coffee.
Container terminals should, in fact, be one of the areas in the port sector to attract foreigners. Currently, said Marchetti, Brazil has a foreign share in the sector that is much smaller than the world average. One of explanations, believes the executive, is the fact that the greatest movement in the sector is not South American, but to the United States, Europe and the Middle East. As this share is still low, however, Marchetti believes there are opportunities for growth.
There are already, however, several international operators in Brazil. One of them is DPWorld, from Dubai, majority owner, alongside Odebrecht, of Embraport, in Santos. The enterprise is under construction and should start operating in 2013, with investment of R$ 2.3 billion. It was designed to be the largest in Latin America and will be operated by DPWorld. Leaders in other states have also met with Arab businessmen in the sector, aiming at attracting investment from the region.
Of the total to be turned to the sector, half should come from BNDES financing lines, according to Marchetti. The lines, according to him, are also available for foreigners if they have offices in Brazil. There is, in fact, a chance for foreign participation in the development of ports. Decree 6620, of 2008, authorised private organisations to invest in the area. That will, however, be done through tenders. The BNDES manager believes that it should take place up to 2014.
The mapping by the BNDES shows that of the forecasted US$ 10.7 billion investment, 28% should go to construction of public ports, 26% to direct public investment through the PAC, 25% to greater offer of container movement and 21% to modernisation and expansion of existing terminals. In its study, the financial institution pointed out the great growth of projections for investment between 2011 and 2014, 27% a year.
*Translated by Mark Ament
