The Brazilian government will not proceed with the privatization of the port of Santos, the largest in Latin America, the incoming Minister of Ports and Airports said on Thursday, quoted by a Brazilian newspaper.
Marcio Franca, chosen to head the ministry in the government of President-elect Luiz Inácio Lula da Silva, told the outlet O Estado de S. Paulo that the decision had been made not to privatize the port, located just southeast of Sao Paulo, and a key gateway for exports of agricultural products, including soybeans and sugar.
Franca could not be reached for comment on the decision, which was widely expected as Lula’s close advisers had publicly said they were against the privatization plan.
The administration of President Jair Bolsonaro had gone ahead with plans to privatize the port of Santos in the second half of 2022, but was unable to overcome obstacles related to the process, including final approval from the Federal Court of Accounts.
“The auction (for privatization) will not take place,” Franca told O Estado. “The port authority will remain state owned.”
The incoming minister said that there was the possibility of contracting private companies to operate private terminals in the port of Santos.
He added, however, that while the incoming government has no problem with private sector involvement in port activities, the state should be able to adequately regulate the sector.