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Changes in the Brazilian Ports Law will bring more dynamism and competitiveness to the sector

Home > PPI English > News > Changes in the Brazilian Ports Law will bring more dynamism and competitiveness to the sector

25 de agosto de 2020

Changes in the Brazilian Ports Law will bring more dynamism and competitiveness to the sector

paranaguaenglish

Less bureaucracy and idle capacity in the port sector, accelerated investments and job creation. Thus can be summarized the changes brought about by the conversion into law of Provisional Measure 945/2020, which was sanctioned on 8/25 by President Jair Bolsonaro.

In order to provide greater efficiency and dynamism to the management of public ports in Brazil, the PM 945/2020 Law Conversion Project, authored by Deputy Felipe Francischini, have introduced important changes to the Ports Law (12815 / 2013).

The process was strongly supported by the Ministry of Infrastructure (with direct supervision by Minister Tarcísio de Freitas and the National Secretariat for Ports and Water Transport, Diogo Piloni) and by the Special Secretariat for the PPI / Ministry of Economy.

Changes

The adaptations brought by the PM 945/2020 Law Conversion Project will bring more flexibility to the management of public ports, favoring a more rational use of space, the attraction of investments, as well as increased efficiency and expansion of the cargo handling capacity.

Freedom of pricing. Changes in the wording of art. 3 of the Ports Law reinforced the logic of freedom of pricing in port operations, repressing practices that are harmful to competition.

Simplification. Important changes were made in order to simplify and make the leasing contracts for port facilities easier. Some contract clauses are no longer considered essential, such as: reversal of assets; adoption of customs inspection measures for goods, vehicles and persons, etc.

ANTAQ. The new law clarifies the competence of the National Waterway Transportation Agency (ANTAQ) in regulating other forms of occupation and exploitation of port areas and facilities which are not provided for in specific legislation. This provides the Agency with more tools to encourage the use of idle areas in ports.

Competitive Bidding Exemption. The new law also created the possibility of competitive bidding exemption when it is proven that there is only one player interested in exploring the area, after a public call issued by the Port Authority.

Before, it was necessary to go through all the procedures and controls necessary to carry out a bidding process in order to meet the legal rites of port leasing, even when there was no competition (something relatively frequent in the sector, given that more than 60% of the demand for port leases is for cargo handling of companies with vertical operation).

Temporary use. The bidding will not be mandatory under the regime of temporary use for exploration of areas, allowing interested parties to test the feasibility of moving cargoes without a consolidated market through a contract with a maximum term of 48 months. In the event that there is more than one interested party and it is not possible to allocate them all, the port administration will promote a simplified selection process to choose the project that best serves the public and port interests. It is worth mentioning that, after the four-year period has elapsed, if the exploration of the new cargo proves to be viable, the government will hold a standard tender for the lease.

Legal certainty. The reform of the port law also made it explicit that the contracts signed between the concessionaires of the organized port (which exercise the role of private port administration) and third parties will be governed by the rules of private law, which reinforces legal security and increases the attractiveness of concessions.

Essential service. The new text changes the legislation of port workers and includes the category as an essential service. In addition, the daily escalation of independent workers must be carried out electronically (through a cell phone application), avoiding the agglomerations generated by the face-to-face escalation format at ports.

 

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