Ports and Terminals

Privatization seeks efficiency and reduction of logistical costs in the country, says Secretary

Jun, 09, 2021 Posted by Ruth Hollard

Week 202125

According to Diogo Piloni, the National Secretary for Ports and Waterway Transport at the Ministry of Infrastructure (MINFRA), the purpose of privatizing Brazilian public ports is to build a management model more suited to these projects, with more efficient service and lower costs.

The statement took place during the secretary’s participation in the 32nd edition of ASPEN (the permanent assembly for national efficiency), promoted by the BESC Institute on June 8th. “It certainly feels good. We have to remember the industry’s motto that the cargo doesn’t wait. The port needs to quickly meet the demands of logistical chains, which is not the case today with the state-owned model”, he said, while participating in a debate titled ‘The Privatization of State-Owned Ports: Is this Good or Bad? For Who?’

According to him, the well-known landlord lease model was not implemented in its entirety in Brazil, resulting in a stalemate in the administration and efficiency of public ports.  It needs to be reformulated. “All the restrictions in the model we have are not viable for the dynamism in the sector. What we are looking for is management agility and efficiency”, he summarized.

As he explained, the concessions program in the sector has taken into account the peculiarities of each port, but without giving up the pillar defended by MINFRA: guaranteeing the public interest and the necessary investments, with legal certainty and respect for signed contracts. “It is not a standard model for everyone, but models that generate synergies for cargo handling, with more adequate port capacities and cost reduction for the country’s logistics,” he reinforced.

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