Learn About the Brazilian Concession Auctions Planned for 2020

RIO DE JANEIRO, BRAZIL – After the beginning of the year, the government is expected to hold the first asset concession auction for the private initiative in February.

It is the concession of part of the BR-101, in the stretch between Paulo Lopes (SC) and the border with the state of Rio Grande do Sul, scheduled for January 21st. The highway concession is part of the forecast of 40 to 44 infrastructure assets that the government intends to auction in 2020.

The projects for the concession of ports, airports, highways, and railroads is expected to reach R$101 (US$25) billion in investments during the period of the contracts. In 2019, 27 assets were sold, which should result in R$9.4 billion in investments and R$5.9 billion in grants.

In addition to the BR-101, six other highways, 22 airports (divided into three blocks), nine port terminals, and two railroads will be granted to the private initiative. Also on the government’s radar is the anticipated renewal of four contracts for rail cargo transport.

The BR-101 concession contract is valid for 30 years. According to the public notice, the bidder offering the lowest value of the basic toll tariff wins. But the BR-101 is not the most awaited by the market. According to the Minister of Infrastructure, the Nova Dutra concession (BR-116/465/101) should be the asset that will most interest investors.

Via Dutra has been managed by CCR transportation company since 1996. The contract expires in March 2021, but the government intends to hold the tender at the end of the second half of 2020. The government intends to hold a new highway auction in the second half of 2020. The stretch to be auctioned connects the two largest metropolitan regions of the country (Rio de Janeiro and São Paulo), passing through 34 cities.

The government’s intention is to hold the auction by the end of the year, but should there be any delay in the schedule, the auction may be moved up to 2021. According to the schedule, the details about the auction are for public consultation by the National Agency of Land Transport (ANTT). Contributions will be received by February 2020.

In addition to the two highways, the government also intends to auction the BR-163, a stretch of 970 km from Sinop (MT) to Miritituba (PA) in the second quarter of 2020 and the BRs-153/080/414, a stretch of 852 km between Anapólis (GO) and Aliança do Tocantins (TO), in the third quarter.

The auctions of BR-116/493, a 711 km stretch from Rio de Janeiro (RJ), passing through Além Paraíba (MG) to Governador Valadares (MG); the BR-040/495 for the 180 km stretch from Juiz de Fora (MG) to Rio de Janeiro (RJ), and the BR-381/262, for the 672 km stretch from Belo Horizonte (MG), passing through Governador Valadares (MG) and heading to Viana (ES) are planned for the fourth quarter.

The BR-262 passes through Belo Horizonte and São Paulo and cuts through municipalities specializing in different agricultural products, in addition to livestock. The highway is also a corridor for the flow of industrial products, such as from the automobile sector, also cutting through the Steel Valley.

The auctions of this modal will be concentrated in the Ferrogrão and Ferrovia de Integração Oeste-Leste (West-East Integration Railway – FIOL). Ferrogrão has not yet defined a concession schedule. The government expects the contract to be valid for 65 years, with operations starting in 2030.

The FIOL will link the municipalities of Ilhéus and Caetité, both in Bahia. Approximately 537 km long, the railroad is expected to take the iron ore produced in the Caetité region and the grain and ore production of Western Bahia through the South Port, a port complex to be built on the outskirts of the city of Ilhéus. The auction is scheduled for the third semester, with 30 years of contract duration.

In regard to the port area, the government intends to auction nine terminals in the states of Bahia, Ceará, Maranhão, Paraná and São Paulo. In Ceará, the auction of the Passenger Maritime Terminal of Fortaleza is scheduled for the second quarter. The contract is valid for 25 years and the winning bidder will be whoever offers the highest value of the award.

In Bahia, the government will auction a solid bulk terminal at the Organized Port of Aratu/Candeias, dedicated mainly to the transport of fertilizers, copper concentrate, and various ores. The contract is expected to be valid for 25 years, but its duration is still under study. The auction is expected to take place in the fourth quarter and will be awarded to the highest bidder.

In Maranhão, four liquid bulk terminals will be rented at the Port of Itaqui, in São Luís. There will be three 25-year contracts and one 20-year contract, with the auction expected to take place in the second quarter. The highest bidder will also be awarded the grant.

In São Paulo, the government will auction two terminals at the Port of Santos. The two areas, located in the Macuco region on the right bank of the port, are dedicated to general cargo handling (pulp). The auction will take place in the third quarter, with a 25-year contract term.

In Paraná, two areas will be auctioned at the Port of Paranaguá. One is a general cargo handling terminal and the other is for vehicle handling. The first contract will be valid for 10 years and the second for 25 years. The first auction is expected to take place in the third quarter and the second in the fourth quarter.

The government will also auction 22 airports (divided into three blocks), as part of the 6th round of airport concessions. The contracts will be valid for 30 years and the grant will be won by the highest bidder. The event is expected to occur in the fourth quarter.

The blocks are divided as follows: North Block comprising the airports of Manaus (AM), Tabatinga (AM), Tefé (AM), Porto Velho (RO), Rio Branco (AC), Cruzeiro do Sul (AC) and Boa Vista (RR), whose annual traffic is 4.4 million passengers.

South Block, which includes the airports of Curitiba (PR), Foz do Iguaçu (PR), Londrina (PR), Bacacheri in Curitiba (PR), Navegantes (SC), Joinville (SC), Pelotas (RS), Uruguaiana (RS) and Bagé (RS), which handle 12 million passengers per year.

The central block includes the airports of Goiânia (GO) and Palmas (TO), located in the Midwest Region; and São Luís (MA), Imperatriz (MA), Teresina (PI) and Petrolina (PE), in the Northeast Region, which handle 7.3 million passengers/year.

According to the government, the joining of airports from different regions is due to the fact that they are located in areas with significant agricultural and agribusiness performance, with the possibility of economic potential for event tourism, business tourism, and regional integration.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error