Ports and Terminals

Gov’t agency proposes solution to Port of Itajaí bidding crisis

Jun, 30, 2023 Posted by Gabriel Malheiros

Week 202325

The Brazilian National Waterway Transport Agency (Antaq) has authorized the Superintendence of the Port of Itajaí to issue a new bidding notice for a buffer contract, this time for two years. The previous attempt to temporarily contract a company to run the terminal provisionally until the official concession auction takes place resulted in an unsuccessful bid.

According to the Superintendent of the Port of Itajaí, the lack of market interest can be attributed to the short term of the contract, which was only six months in the first rendition of the buffer contract.

The resolution, signed by Antaq’s general director, Eduardo Nery Machado Filho, also resolves another pending bidding issue at the Port of Itajaí. It mandates that the port submit a proposal to rent the equipment from APM Terminals, which will cease operations in Itajaí in July.

It was unclear until now if the port would retain equipment such as portainers and cranes, which are necessary for operations. Many were concerned that the company would choose to remove the assets from the terminal, as these equipment pieces are costly and difficult to transport and install. Their removal would render a contract with another operator impractical.

Please see below a chart displaying the Port of Itajaí’s container movement from Jan 2019 to Dec 2022. The data is from DataLiner.

Container movement – Itajaí | Jan 2019 – Dec 2022 | TEU

Source: DataLiner (click here to request a demo)

Furthermore, Antaq requested the Port of Itajaí to clarify whether there is an actual need for establishing a minimum container handling requirement in the buffer contract, considering the current state of the terminal.

As per the document, the temporary contract will remain valid until the completion of the auction and the successful transition from one operator to another.

Source: NSC Total

To read the original news report, please visit: https://www.nsctotal.com.br/colunistas/dagmara-spautz/antaq-resolve-dois-problemas-para-o-porto-de-itajai-que-enfrenta-tempestade

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