Brazil’s Congress has approved a port reform package, the Provisional Measure of the Ports, that will provide a new legal and institutional framework to increase the nation’s port system efficiency and reduce port-related logistics costs by encouraging competition and private sector participation, according to Drewry Maritime Research.
As expected, the country’s President Roussef vetoed parts of the text adopted by the Congress in order to restore consistency with the government’s objectives, Drewry said. The changes applied to extension of existing concessions, labor-related issues and participation of shipping lines in private companies’ bidding for port projects.
However, Roussef did not alter two major items in the bill, including private terminals’ allowance to handle third-party cargo and the selection criteria for future terminal concessions, which will be the lowest tariff to the user instead of the highest concession payment to the government.
Brazil’s government plans to publish the implementation decrees within 15 days.