PROVISIONAL MEASURE OF PORTS – UPDATE
If the Provisional Ports is not approved until May 16th, the Federal Government will study an “alternative exit”, making adjustments to the regulation of ports by means of Decrees and Regulatory Rules to try to make at least the 32 bids for leases that were due later this year.
However, this “output” does not compare with the scale compared to the original law project.
In view of the port sector, if the Provisional Measure expires, the Federal Government’s strategy to make investments in the port sector would be through “administrative process”, for example, change Decrees as the one related to the limiting construction of new ports whom has its own cargo to move it.
However, could be missed a chance to make a modernization and surely generate more productivity.
Among the main concerns under discussion we could emphasize:
ØCreation of the “terminal industries” – installation, which is part of a chain, could be accessed without bidding;
ØApproval of Provisional “opens space” for the expansion of the “Port of Açu” (RJ) for transporting containers and a new port at “Peruíbe” (SP). Entrepreneurs with independent acting from the production system may have opened the way for investments;
ØSome important groups may lose leadership in containers market with the entry of new operators. In other words, these groups may be the slice of the market committed to new entrants on more favorable commercial terms;
ØBusiness installed more than 20 years, can be addressed with the possibility of renewal of contracts for up to five years.
NOTE: In the Brazilian Constitutional Law, provisional measure (“Medida Provisória”) is an act of the President (Chief of Executive), with the force of law, without the participation of the Legislature, which will only be called to discuss it and approve it at a later date. The assumption of the provisional measure is urgency and relevance, cumulatively.