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Brazil auctions three major port terminals for R$148.5m
Transactions - AUGUST 15, 2019

Brazil auctions three major port terminals for R$148.5m

by Kali Persall

Brazil has auctioned three 25-year port terminal concessions on the Sao Paulo Stock Exchange for around R$148.5 million ($37.5 million), media sources reported Aug. 15.

Two of the terminals are located in Santos, the largest port in Latin America, and are used to transfer fuel, fertilizer, chemicals and salt, according to Alianza News. They span 29,300 square meters (314,969 square feet) and 38,400 square meters (412,792 square feet), and were purchased by Hidrovias do Brasil and Aba Infraestructura

of 112.5 million ($28 million) and R$35 million ($8.8 million), respectively.

The other terminal is located in Paranagua, Brazil’s main agricultural port, and also handles general cargo like paper products and cellulose. Klabin won the bid for the port with R$1 million ($252,525).

The Brazillian government expects the ports to receive investments totaling R$417 million ($105 million) over the 25-year concession period.

Around R$37.12 million (about $9.6 million) of the funds raised by the auction will be paid when the contracts are signed, which the companies must do within 120 days. The remaining funds will be paid in five annual installments.

This is the third port auction the Brazilian has conducted this year.

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