brazilian port sector a new model for port development stavanger november 2010 presentation by...

Brazilian Port Sector

A New Model for Port Development

StavangerNovember 2010

Presentation by Engineer José Ricardo Ruschel dos Santos

1. 1. Information on BrazilInformation on Brazil

2. Growth of Containerization2. Growth of Containerization

3. Brazil Takes Off3. Brazil Takes Off

4. Regulatory Framework4. Regulatory Framework

5. Brazil Invests in Its Ports 5. Brazil Invests in Its Ports

6. Fostering Private Investments6. Fostering Private Investments

7. Conclusion7. Conclusion

Brazilian Port SectorA New Model for Port Development

Privatization of Port Operations

Information on Brazil

• Brazil is located in the north east of South America and has a geographical surface area of 8.5 million km2.

• It borders every nation on the South American continent except Ecuador and Chile.

• The capital is Brasilia, and the official language is Portuguese.

• Brazil’s current population is estimated to be approximately 192 million, making it the fifth most populated country in the world ranking behind China, India, the United States and Indonesia.

• Brazil’s population has increased steadily at a rate of 1.2% since 2004 and is forecast to continue to grow over the period from 2008 to 2012 to reach an expected population of approximately 203 million in 2012.

• Brazil is a federative republic comprised of 26 states which are subdivided into 5,560 municipalities and a federal district.



3. Brazil Takes Off 3. Brazil Takes Off

4. Regulatory Framework 4. Regulatory Framework

5. Brazil Invests in Its Ports5. Brazil Invests in Its Ports



Brazilian Port SectorNew Model for Port Development


Brazil’s Ports Cargo FlowBrazil’s Ports Cargo Flow

Cargo Handling - Development and Forecast

Container Handling Development and Forecast

Brazil’s Ports Cargo FlowBrazil’s Ports Cargo Flow

TEU’s



3. Brazil Takes Off3. Brazil Takes Off




7. Conclusion 7. Conclusion

Brazilian Port SectorNew Model for Port Development


• Brazil has the seventh largest economy in the world by

purchasing power parity and the eighth largest at market

exchange rates.

• Brazil's GDP is the highest of Latin America with large and

mature mining, agricultural, technology, manufacturing, and

service sectors.

• Rating agencies have upgraded Brazil’s long-term foreign

currency sovereign debt rating.

• Export products include:

– alcohol, sugar, coffee, orange juice, soy, corned beef,

tobacco, poultry, pork.

– Niobium, iron, manganese, bauxite (aluminium),

magnesite, ornamental stones, tin, graphite.

– Aircraft, automobiles, steel, ethanol, textiles, footwear

and electrical equipment.

AgribusinessAgribusiness

Main ProductsMain Products Brazil´s Position in World RankingBrazil´s Position in World Ranking

ProducersProducers ExportersExporters

EthanolEthanol 11ºº 11ºº

SugarSugar 11ºº 11ºº

CoffeeCoffee 11ºº 11ºº

Orange JuiceOrange Juice 11ºº 11ºº

Soybean ProductsSoybean Products 22ºº 11ºº

BeefBeef 22ºº 11ºº

TobaccoTobacco 22ºº 11ºº

Chicken ProductsChicken Products 33ºº 11ºº

Pork ProductsPork Products 44ºº 44ºº

Brazil Brazil The Impact of New Oil DiscoveriesThe Impact of New Oil Discoveries

The massive oil deposits discovered in the Brazilian off-shore pre-salt layers should provide a huge boost

to the long-term outlook of the energy sector

Port Operations in Brazil – a New Paradigm

12

International ReservesUS$ billion

Source: Brazilian Central Bank* Position in Out/2010

• Brazil’s macroeconomic fundamentals

have significantly improved in recent

years, and its economy is forecast to

grow by an annual average of 5.5% to

2013.




4. Regulatory Framework4. Regulatory Framework



7. Conclusion 7. Conclusion



34 MAIN PUBLIC PORTS

AMAZONASAMAZONAS PARÁPARÁ

AMAPÁAMAPÁ

RORAIMARORAIMA

RODÔNIARODÔNIA

MATO GROSSOMATO GROSSO

TOCANTINSTOCANTINS

GOIÁSGOIÁS

MATO GROSSOMATO GROSSODO SULDO SUL

MARANHÃOMARANHÃO

PIAUÍPIAUÍ

CEARÁCEARÁRIO GRANDERIO GRANDEDO NORTEDO NORTE

PARAÍBAPARAÍBA

PERNAMBUCOPERNAMBUCO

ALAGOASALAGOAS

BAHIABAHIA

MINAS GERAISMINAS GERAIS

SÃO PAULOSÃO PAULO

ES

PÍR

ITO

SA

NT

O

ES

PÍR

ITO

SA

NT

O

PARANÁPARANÁ

SANTASANTACATARINACATARINA

RIO GRANDERIO GRANDEDO SULDO SUL

SERGIPESERGIPE

RIO DE JANEIRO

RIO DE JANEIRO

ACREACRE

Port of MANAUSPort of SANTARÉM

Port of BELÉMPort of VILA DO CONDE

Port of ITAQUI

Port of FORTALEZAPort of AREIA BRANCA

Port of NATAL

Port of CABEDELO

Port of SUAPE

Port of MACEIÓ

Port of SALVADOR

Port of ARATU

Port of ILHÉUS

Port of BARRA DO RIACHO

Port of VITÓRIA

Port of RIO DE JANEIROPort of ITAGUAÍ

Port of SÃO SEBASTIÃOPort of SANTOS

Porto de PARANAGUÁPort of SÃO FRANCISCO DO SUL

Port of ITAJAÍ

Port of IMBITUBAPort of PORTO ALEGRE

Port of RIO GRANDE

Port of MACAPÁ

Port of RECIFE

Port of NITERÓIPort of FORNO

Port of ANTONINA

Port of ANGRA DOS REIS

Port of PELOTAS

Port of PECÉM

128 PrivateTerminals

Government confirms regulatory framework...Government confirms regulatory framework...

Brazilian Constitution, 1988

• The Federal Government is responsible for port operations, either directly or through delegation (authorization, concession or permission) – art. 21, XII, f

• Legislation on ports is the exclusive responsibility of the Federal Government – art. 22, X

• Port services may only be delegated through public bidding processes - art. 175

Port Modernization LawsLaw 8.630, 1993

and Law 11.518, 2007

• Two modes of port operation:

I – Public

II – Private– Exclusive, related to throughput of own cargos– Mixed use, related to throughput of own and third-party cargos– Tourism, related to passenger transportation– Transfer stations

Creation of ANTAQLaw 10.233, 2001

• National Waterways Agency responsible for regulation and supervision of port system

Creation of SEPLaw 11.518, 2007

• Ministry for Ports, responsible for the definition of policies, directives and public investment in the Brazilian port system

Decree 6.620, 2008• Strengthens the present regulatory framework and establishes rules for the

concession of new ports

and establishes rules for concession of new ports

Port Modernization: chosen modelPort Modernization: chosen model

Public use terminals Private use terminals

Implementation •Obligatory public bidding process •Authorized by Public Authority

Period• Up to 50 years (including extension)• Obligation to render services in a continues

manner.

• No limit set, limited to original type of service authorized

• Possibility of interruption of authorization in accordance with legal terms

Installations •Revert at end of contract •Do not revert at end of contract

Services• Open to all• Rates charged are subject to supervision

• Not open to all• Serves owner exclusively (own cargo) or mixed

(own cargo, complemented with third-party cargo)• Possibility of selecting users and cargo

Manpower •Hired via OGMO •No hiring restrictions

Regulated by ANTAq

• Resolution 55/2002 – Norm for concession of port areas and installations

Consolidates and standardizes conditions within concession contracts

• Resolution 517/2005 – Norm for construction and operation of private terminals

Required to supply necessary installations and equipment to meet own cargo needs.

Privatization of public port operations and the creation of mixed-use private terminals

Port Operations in Brazil – the New Paradigm

Brazilian Ports Organization Brazilian Ports Organization ChartChart

Brazilian State

Ministry for Ports (SEP)

Port Authority

Concession, authorization and permission holders

ANTAQ

Brazilian Ports Operational Brazilian Ports Operational ChartChart

Ministry for Ports (SEP)

Port Authority

Concession, authorization and permission holders

End Users

CAP (Port Authority Council)






6. Fostering Private Investment6. Fostering Private Investment




BRAZIL – TRANSPORT MODES DISTRIBUTION

5825

133,6 0,4

HIGHWAIYS

RAILWAYS

WATERWAYS

DUCTS

AIR

Brazilian Growth Acceleration Program – PAC IBrazilian Growth Acceleration Program – PAC I

PORTS: US$ 1.9 billion

– National Dredging Program = US$ 900 millionNational Dredging Program = US$ 900 million

– Improvements of Port Infrastructure and Land access = US$ 1.0 Improvements of Port Infrastructure and Land access = US$ 1.0

billionbillion

• Creates the Brazilian Port Dredging Program;Creates the Brazilian Port Dredging Program;

• Introduces the concept of Output Based Introduces the concept of Output Based

Dredging Contracts;Dredging Contracts;

• Establishes the competence of the Ministry for Establishes the competence of the Ministry for

Ports to implement the Program.Ports to implement the Program.

Brazilian Port Dredging Program - Law n° Brazilian Port Dredging Program - Law n° 11.610 / 200711.610 / 2007

Fortaleza

Natal

Rio de Janeiro

Santos – DredgingItajaí

S. Francisco do Sul

Rio Grande

Recife

Suape – Outside Canal

Salvador e Aratu

Cabedelo

Paranaguá

Angra dos Reis

Itaguaí – Phase 2

National Dredging ProgramNational Dredging Program

Procurement to be initiated

Under procurement

contracted

Concluded

Legend:

Suape – Internal Canal

Santos – Rock Blasting

Itaguaí – Phase 1

US$ 900 millionUS$ 900 millionVitória

Improvements of Port InfrastructureImprovements of Port Infrastructure

• Construction of berths and ramps

• Mooring and V.T.M.S. systems

• Port avenues

• Breakwater expansion

• Infrastructure modernization

VitóriaUS$ 77,2 million

Vila do CondeUS$ 70 million

Santos - US$ 135 million

Rio Grande - US$ 314 million

SuapeUS$ 53,4 million

São Francisco do Sul - US$ 45 million

MaceióUS$ 16,4 million

Luis Correia

US$ 21 million

Itaqui US$ 177 million

Areia Branca Us$ 91 million

Improvements of Port InfrastructureImprovements of Port Infrastructure

Ongoing ConstructionOngoing Construction ::

US$ 1.0 billionUS$ 1.0 billion

GROWTH ACCELERATION PROGRAM – PAC IIGROWTH ACCELERATION PROGRAM – PAC II48 Seaport Development Projects

21 PortsUS$ 3,0 billion

Projects Quantity

Dredging 12

Port Infrastructure 24

Logistic Intelligence 5

Passenger Terminals – World Cup 2014 7

Growth Acceleration Program – PAC IIGrowth Acceleration Program – PAC II2011-20142011-2014

Santos – Left and Right Marginal highways, underpass, Piers Alamoa and Barnabé, Wharf Reinforcement,

Dredging and Wharf Realignments

US$ 795,5 bi

Rio Grande – Porto Novo Wharf Phase 3, Dredging

US$ 80,5 mi

Areia Branca – Dredging

US$ 54,4 mi

Imbituba – Dredging

US$ 30,5 mi

Vitória – Berth, Storage Area and Deep Water Port

US$ 111,1 mi

Itaguaí – Dredging 3 and 4

US$ 147,2 mi

Paranaguá – Grain Silo

US$ 25 mi

Itajaí – Berth Reinforcement and Retroarea

US$ 80,5 mi

Salvador – Breakwater Extension and Passenger Terminal

US$ 55,5 miBarra do Riacho – Dredging

US$ 43,3 mi

Pecém – 2 Berths for Solid Bulk

US$ 111.1 mi

Natal – Extension to Wharf and Passenger Terminal

US$ 60 mi

Maceió – Dredging - US$ 13,8 mi

Barra do Furado – Dredging - US$ 30,5 mi

Santarém – Extension to Multi-Use Terminal 1 and

Construction of MUT 2

US$ 84.4 miLuís Correia – Dredging

US$ 15.5 mi

PAC 2

LOGISTIC INTELLIGENCE

Paperless Port

National Port Logistics Plan

Implementation of VTMS

Intelligent Cargo

Management of Solid Waste

Rio de Janeiro – Wharf Reinforcements, Dredging, Passenger Terminal and Pier

US$ 163,8 mi

Mucuripe – Container Terminal - US$ 33.3 mi

Itaqui – Grain Terminal

US$ 155.5 mi

Suape – Solid Bulk Terminal

US$ 166,6 mi





5. Brazil Invests in Its Ports 5. Brazil Invests in Its Ports




Private Terminal Ponta Ubu

US$ 167 million

Vila do CondeUS$ 859,0 million

SantosUS$ 3,1 billion

SuapeUS$ 27 million

ItaguaíUS$ 1.4 billion

Private Investments – InfrastructurePrivate Investments – Infrastructure

Private Terminal Cotegipe

US$ 73 million

Rio de JaneiroUS$ 366.0 million

AçuUS$5,5 billion

ImbitubaUS$ 269 million

Ongoing ConstructionOngoing Construction ::

US$ 15.3 billionUS$ 15.3 billion

Rio GrandeUS$ 248 million

ItaquiUS$ 1,5 billion

Port of AratuUS$ 4 million

ItapoáUS$ 350 million

FerrusUS$1,4 billion

Brazilian Port Sector A New Model for Port Development

Thank you!


brazilian port sector a new model for port development stavanger november 2010 presentation by...

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