The Provisional Measure 595, which changes the rules of ports and opens the sector to private investment, has had several discussions lately. Mainly regarding the extension for more ten years of expired contracts or about to be expired in short term but without bidding.

 The biggest concern would be with the fuel supply in the North and Northeast part of Brazil, and adjustments have been suggested by the National Petroleum Agency (“ANP”), claiming adjustments in contracts for liquid bulk terminals considered essential to supply these regions.

 In this context, the “Provisional Measure of Ports” needs to be amended, since the current rules terminals with expired contracts should be “bided”.

 According to data from a local union “Sindicom”, terminals with near maturity dates and that should have their fuel storage committed are: Belem and Santarem (PA), Itaqui (MA), Cabedelo (PB) and Maceió (AL).

 Among the major changes under discussion are:

 Ø Concession – any business can be a private terminal operator. Previously, only a producer with minimum volume of cargo itself could build a new facility.

Ø Fees – private ports will offer more competitive rates to importers and exporters.

 Ø Bids – will be won by whoever offers greater capacity for freight  by charging lower rates.

 Ø Contracts – terminals with contracts prior to 1993 will have bids necessarily. The sector claims for an additional 10 years without bid.

  • Competition – the Provisional Measure provides public calls for new terminals, opening their value to competitors.