1st Brazilian port authority soon to go into auction

Brazil’s first port authority to be included in the national program for concessions and privatizations - Companhia Docas do Espirito Santo (Codesa) - will go into auction next March 25th, at the São Paulo-based B3 exchange.

The process will work as a combination of privatization and concession, in which the company will be sold and cease to exist as a state-owned company and the administration of the ports will be transferred for a period.

This is how it's going to work. First, state-run Codesa will have its shares sold and will become a private-sector company. This company will then hold a concession to operate the ports of Vitória and Barra do Riacho for 35 years.

Investment funds and port operators present in the country and international port authorities,such as those operating in Europe and Asia, have shown interest. Private investments of R$334.8 million are expected, in addition to operating expenses estimated at more than R$1 billion.