Ports and Terminals

Brazil’s likely new Ports minister pledges anti-privatization stance for Santos Port

Aug, 31, 2023 Posted by Gabriel Malheiros

Week 202336

One of the most likely candidates to take over the Ministry of Ports and Airports in Brazil, Congressman Silvio Costa Filho, has been expressing to allies and fellow party members that he is against the privatization of the Port of Santos, even though this is a campaign promise of the State Governor, Tarcísio de Freitas, who is also a member of the Republicanos party.

According to close sources, the congressman advocates for “enhancing the governance of the Port” instead of handing over the country’s most important terminal to private enterprise. As explained by an insider, the idea is to maintain ongoing projects and expand new initiatives, fostering dialogue with all stakeholders of the port, both in terms of investments and infrastructure as well as social programs.

The remarks given by Silvio Costa’s aides bear some resemblance to the viewpoint of Márcio França’s administration, who is expected to step down from his position. Since the start of his term, the ministry’s secretaries have advocated for possible concessions of services related to the port and water transportation — such as the administration of the navigation channel — but have rejected any offer concerning the Port Authority itself.

Silvio Costa Filho’s stance on the matter is a topic that has raised concerns within the government of Luiz Inácio Lula da Silva. Insiders at the President’s office acknowledge apprehension behind the scenes regarding the possibility that the appointment of the congressman to the ministry could pave the way for the privatization of the Port of Santos.

The idea of privatizing the Port of Santos is one of the key campaign promises of Tarcísio, but it has faced obstacles, primarily due to the stance of the current Minister of Ports and Airports, Márcio França, who opposes the measure and is a political rival of the Governor of São Paulo.

In the view of some members of the Workers’ Party (PT), with the potential replacement of França by Costa Filho, the path toward privatization could become smoother, potentially allowing the Governor of São Paulo to orchestrate the handover of the port to private enterprise, given that the likely new minister and Tarcísio are from the same party.

Occupying the Ministry of Ports and Airports holds strategic importance for the Republicanos. Apart from its considerable capacity to receive parliamentary amendments, the appointment of Silvio Costa Filho will clear Márcio França’s path. The current minister has his political base in Santos, precisely where the largest Brazilian port is located. In practice, losing the ministry could represent a significant setback for him and the Brazilian Socialist Party (PSB), which is also the party of Vice President Geraldo Alckmin.

In an attempt to navigate the situation, Lula will move Márcio França to another seat in his administration.

In this context, the trend is that the PSB’s name will be announced in the coming days as the head of the future Ministry of Micro and Small Businesses, which Lula confirmed he will create on Tuesday. Initially, França was considered for the Ministry of Science and Technology as well, but this would require finding a new position for Luciana Santos, the current head of MCTI and a representative of the Communist Party of Brazil (PCdoB) in the PT government.

Source: Valor Econômico

To read the original news report, visit: https://valor.globo.com/politica/noticia/2023/08/30/cotado-para-assumir-ministerio-dos-portos-avisa-aliados-que-e-contra-privatizar-terminal-de-santos.ghtml

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