Brazil has started tender processes for the first 50 private use terminals (TUPs) that will be built in the country, with a majority of them in the North Region.

With a private investment of approximately R$11 billion ($4.9 biilon), the 50 new terminals are expected to handle 105 million tonnes a year of general cargo, containers, solid and liquid bulk.

Brazil's President Dilma Rousseff unveiled the list of tenders on July 3rd:

• 27 terminals will be set up in the North Region (totalling R$ 1.8 billion in investment);
• 12 terminals in the Southeast Region (R$ 4.6bn);
• 5 in the South Region (R$ 150 million);
• 3 in the Northeast Region (R$ 4.5 billion); and
• 3 more in the Central-West Region (R$ 43 million).

The deadline for submission of proposals is August 5th and the issuance of permits will begin on September 21st. The process will last no more than 120 days, says the Brazilian government. Once a building authorisation is granted, the concessionaire will have three years to start operating the terminal.

On June 28, 2013, a new legislation that regulates investments in ports was published in the Official Gazette.

The Ports Law contemplates a new regulatory structure for the sector and contains provisions on direct and indirect exploitation of ports and port facilities by the Federal Union and activities undertaken by port operators. The Regulating Decree introduces the rules applicable to some of the major changes contemplated by the Ports Law, such as the change in the criteria used in tenders and mechanisms to authorize private terminals.

In order to increase competition, the criterion formerly used in tenders proceedings (highest bid) has been replaced by greatest capability to move tons and lowest cost. Therefore, in concession and lease tenders the following criteria will be used separately or in combination: (a) greatest capability to move, (b) lowest fees or (c) shortest time to move freight.

Source: Brazil Government