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US$26bn plan to modernise Brazil’s ports

US$26bn plan to modernise Brazil’s ports

“We want to inaugurate a new era with the modernisation of infrastructure and port management,” she said.

First launched in August for the roads and railway sectors, this new programme has been created to increase productivity gains and boost competitiveness in the country’s ports. The measures will establish a new regulatory framework for Brazilian ports with the goal to regulate pilotage services, increase access and entry to ports, make public announcements for applicants who wish to build Private Use Terminals (called TUPs in Portuguese), and expedite the process of leasing ports and issuing environmental licenses.

Other measures will focus on the improvement of the country’s port’s planning capacity, including an institutional reorganisation of the ports sector and the establishment of logistic integration between transportation sectors.

The Secretariat of Ports of the Presidency of Brazil (SEP/PR) will be responsible for centralising port planning activities, as well as the management of sea ports, fluvial (river) ports and lake ports. The Ministry of Transport (MT) will be responsible for land and waterway-based transportation infrastructure.

In total, approximately R$54bn (US$26bn) will be invested in new leasing operations and TUPs, of which R$31bn (US$14.9bn) will be invested by 2014/2015 and R$23.2bn (US$11.2bn) by 2016/2017.

The ports to receive investments are in four different regions of Brazil: Espírito Santo, Rio de Janeiro, Itaguaí and Santos in the Southeast; Cabedelo, Itaqui, Pecém, Suape, Aratu and Porto Sul/Ilhéus in the Northeast; Porto Velho, Santana, Manaus/Itacoatiara, Santarém, Vila do Conde and Belém/Miramar/Outeiro in the North; and Porto Alegre, Paranaguá/Antonina, São Francisco do Sul, Itajaí/Imbituba and Rio Grande in the South.

Also earmarked for investment is R$2.6bn (US$1.25bn) for waterway, road and railway access and for the ship yards at Brazil’s 18 main ports. Of this amount, R$1bn (US$481m) will be funded by Brazil’s Ministry of Transport; the rest will be funded mainly by Brazilian states and the private sector.

This investment complements the on-going activities currently included in other government programmes, such as the Growth Acceleration Programme (PAC).