The Privatization of the Port of São Sebastião

SÃO PAULO – The National Waterway Transportation Agency (Antaq) is about to release the concession project for the Port of São Sebastião, in the state of São Paulo, and now, the documentation prepared by the Ministry of Infrastructure and the National Bank for Economic and Social Development (BNDES) is heading for analysis by the Federal Court of Accounts (TCU). The auction is expected to take place in the fourth quarter of this year, before the end of the current President’s term.

Similar to the port of Itajaí in Santa Catarina, the auction of the Port of São Sebastião was modeled differently because there will be no privatization, but only the concession of the port complex. The new operator will have the right to operate not only the common infrastructure but also handle cargo at terminals. This format was chosen because São Sebastião and Itajaí are small ports with specific vocations. Therefore, there would be no viability in conceding only common areas.

Located in a region of deep waters, the Port of São Sebastião offers a greater draught than Santos, namely, 25 meters compared to 14.4 meters, which means it requires fewer dredging services expenses. With two independent entrances, it is 100 kilometers away from the Paraíba Valley, a region that houses a vast industrial park, including glass factories and others in the electronics, automotive, railway, and aerospace sectors.

With its privileged location, the port is also 100 kilometers from the metropolitan region of São Paulo and 150 kilometers from the Campinas region. In total, it has five berths and four storage yards, as well as five silos with a static capacity of 4,000 tons each. One of its differentiators is its ability to handle high-value-added cargo. Additionally, it houses the Almirante Barroso Private Use Terminal (TUP), exclusively dedicated to Petrobras cargoes. It is an environmental reference among Brazilian ports and has received ISO 14.001 certification twice, ranking first in the Antaq Port Performance Index.

The port handles around 750,000 tons per year of solid bulk such as soda ash, sulfate, ulexite, glass silicate, malt, barley, and fertilizer inputs. Soda ash is a raw material for the glass and cosmetics industries and indirectly supports the automotive and construction industries.

Since 2007, it has been managed by the São Sebastião Dock Company, a company under the State Transportation Secretariat, which has invested in modernizing port infrastructure, increasing its operational capacity from 100,000 square meters to the current 400,000 square meters. In total, it has an area of 900,000 square meters, which is considered an obstacle to its expansion, as experts believe an area of 2 million square meters would be ideal to meet growth expectations.

The privatization project for the Port of São Sebastião foresees R$ 23 million in private investments. With the concession, it is expected that port management will generate greater investment flow and more dynamism in port activity, as well as modernization and improvement of service levels and increased efficiency, as well as the incorporation of international best practices.

However, privatization has been contested by workers’ representative entities, and it seems that the concession’s effectiveness may still depend on the guidance of the federal government that will emerge from the October elections. Regardless, the important thing is that privatization allows for new investments and provides more autonomy to the port, attracting more cargo with increased operational capacity. This will not only contribute to maintaining jobs and the livelihoods of the 1,200 families dependent on the port but also create new jobs, contributing to the growth of the region, as only then will the process have been worthwhile.

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Liana Lourenço Martinelli, lawyer, postgraduate in Business Management and International Trade, is the Manager of Environmental, Social, and Corporate Governance (ESG) at the Fiorde Group, consisting of Fiorde International Logistics, FTA Transport and Warehouses, and Barter International Trade. Email: lianalourenco@fiorde.com.br. Website: fiorde.com.br.

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