Panel SA: Lula should receive the green light from TCU for privatization of the port of Santos

The privatization of the port of Santos must be approved by the Federal Audit Court (TCU) next week with reservations. The rapporteur, Minister Bruno Dantas, was elected president of the court and the case will be his last case to be put to a vote in plenary next Tuesday (13).

Although the auditors criticized the proposed model, they recommended its approval. They claim that there is a majority in the plenary, but there are chances of a minister asking for a view, which would paralyze the trial.

According to reports, in his vote, Dantas considers the change of government. For this reason, he will recommend that the future minister of the area monitor the performance of the already privatized ports — smaller ones — in order to, later, move forward with Santos. The idea is to leave the project released to Lula so that the elected government can decide which path to take.

The model to be approved by the TCU provides for around R$ 30 billion in private investments.

The project was led by the former Minister of Infrastructure, Tarcísio de Freitas, elected governor of São Paulo.

The privatization of Santos was linked to railway concessions —especially those that reach the port. By having their contractual renewals renegotiated in Tarcísio’s management, the concessionaires committed themselves to making more investments in expanding the cargo transportation capacity.

Therefore, if there is no privatization, it will be up to the government to carry out this expansion of the cargo handling and storage network in the port to avoid contractual imbalances in the railroads.

Julio Wiziack (interim) with Paulo Ricardo Martins and Diego Felix