1 FEDERAL REPUBLIC OF BRAZIL Brazilian Port Sector New Model for Port Development Japan November, 2009 Pedro Brito Minister of Ports - Brazil
2 Economic Environment
3 Economic Environment Brazil has the ninth largest economy in the world by purchasing power parity and tenth largest at market exchange rates. Brazil's GDP is the highest of Latin America with large and mature mining, agricultural, technology, manufacturing, and service sectors. Rating agencies upgraded Brazil s long-term foreign currency sovereign debt rating to the investment grade of BBB and BB+.
4 Economic Environment Export products include: ethanol, sugar, coffee, orange juice, soy, corned beef, tobacco, poultry, pork Niobium, iron, manganese, bauxite (aluminium), magnesite, ornamental stones, tin, graphite Aircraft, automobiles, steel, textiles, footwear and electrical equipment.
5 Brazil Brazil s Ranking (production) by Product 1º. 2º. Soy Beef Tobacco Iron Manganese Bauxite Ethanol Sugar Coffee Orange Juice Niobium
6 Economic Environment Brazil s macroeconomic fundamentals have significantly improved in recent years. Brazil s economy is forecast to grow by an annual average of 5% over the period versus the average of 4.5% for
7 Economic Environment The massive oil discovery at Brazilian offshore oil field ( pre-salt deposits ) should provide a huge boost for the long-term outlook of the Brazilian energy sector.
8 BRAZIL Market Expectations GDP: US$ 1,605,600 millions Annual Inflation Rate % 4,3 EXPORTS: US$ millions Average Exchange Rate R$/US$ 1,80 IMPORTS: US$ millions GDP % 1,0 INTERNATIONAL RESERVES: US$ millions Commercial Balance US$ bi 25,30 Foreign Investment US$ bi 25,00
9 ACRE Porto de MANAUS AMAZONAS RORAIMA RODÔNIA 34 MAIN PUBLIC PORTS Porto de SANTARÉM AMAPÁ PARÁ MATO GROSSO MATO GROSSO DO SUL TOCANTINS GOIÁS PARANÁ RIO GRANDE DO SUL Porto de MACAPÁ SÃO PAULO SANTA CATARINA Porto de BELÉM Porto de VILA DO CONDE MARANHÃO PIAUÍ BAHIA MINAS GERAIS RIO DE JANEIRO CEARÁ ESP ESPÍRITO RITO SANTO SANTO Porto de ITAQUI Porto de PECÉM Porto de FORTALEZA Porto de AREIA BRANCA RIO GRANDE DO NORTE PARAÍBA PERNAMBUCO ALAGOAS SERGIPE Porto de NATAL Porto de CABEDELO Porto de SUAPE Porto de MACEIÓ Porto de SALVADOR Porto de ARATU Porto de ILHÉUS Porto de BARRA DO RIACHO Porto de VITÓRIA Porto do FORNO Porto do NITERÓI Porto do RIO DE JANEIRO Porto de ITAGUAÍ Porto de ANGRA DOS REIS Porto de SÃO SEBASTIÃO Porto de SANTOS Porto de ANTONINA Porto de PARANAGUÁ Porto de SÃO FRANCISCO DO SUL Porto de ITAJAÍ Porto de IMBITUBA Porto de PORTO ALEGRE Porto de PELOTAS Porto de RIO GRANDE Porto de RECIFE 128 Private Terminals
10 Brazil s Ports Cargo Flow Cargo Handling - Development and Forecast
11 Brazil s Ports Cargo Flow Container Handling Development and Forecast
12 Port Regulatory Framework
13 Brazilian Ports Legal Regime 1988 Brazilian Constitution: Section 21(XII)(f): the Brazilian State ( União ) has the right to exploit ports directly or indirectly through concession, permission or authorization regime. Section 22(X): the Brazilian State has the exclusive right to regulate port matters. Section 175: Public Authorities have the obligation to prepare public bids for port authorizations, concessions or permissions.
14 Brazilian Ports Legal Regime Federal Law 8,666/93 Public Bidding Law Federal Law 8,987/95: Provides for the rules of permission and concession regime of public services rendered in connection with Section 175 of the 1988 Federal Constitution.
15 Brazilian Ports Legal Regime Federal Law 8,630/93 Ports Modernization Law Port terminals can be exploited under two regimes: private and public. Private Regime is divided into 4 categories: (i) exclusive use for own cargo, (ii) mixed use for own and third party cargo, (iii) tourism for passengers transportation, and (iv) transhipment operation.
16 Brazilian Ports Legal Regime Federal Law 10,233/2001: Provides for the creation of ANTAQ, an independent regulatory agency responsible for the regulation and fiscalization of ports and waterway transportation. Federal Law 11,518/2007: Provides for the creation of the SEP - Special Secretariat of Ports (Ministry of Ports) with powers to assist Brazil s President in the definition and implementation of public guidelines, policies and investments in Brazil s ports system, and to promote the execution of programmes and projects of support to organized ports and port infrastructure.
17 Brazilian Ports Legal Regime Federal Decree 4,391/2002: Provides for Brazil s leasing programme of public port areas and facilities referred to in the Ports Modernization Law.
18 Brazilian Ports Legal Regime Federal Decree 6,620/2008: Policies and guidelines Preserves previous lease/concessioning contracts and authorizations Cleary defines own and third party cargoes Promotes private investments in port projects Adequate return of capital investments through port tariffs New Organized Ports Concession period up to 25 years renewable for the same period Interested investor can propose projects and prepare feasibility studies New projects can be included in the PGO (General Concessioning Plan) at any time Simplified analysis and approval process Grant of concessions/leases through bidding conducted by ANTAQ
19 Brazilian Ports Organization Chart Brazilian State Ministry of Ports (SEP) ANTAQ Port Authority Concession, authorization and permission holders
20 Brazilian Ports Operational Chart Ministry of Ports (SEP) CAP (Port Authority Council) Port Authority Concession, authorization and permission holders End Users
21 Public Investments
22 Public Investments Brazilian Growth Acceleration Program PORTS: US$ 1,800 mi Dredging National Program = US$ 800 mi Improvements of Port Infrastructure and Land access = US$ mi
23 Brazilian Port Dredging Program - Law n / 2007 Creates the Brazilian Port Dredging Program; Introduces the concept of Dredging based on Results; Establishes the contract default; Establishes the competence for the Brazilian Secretariat of Ports.
24 Brazilian Port Dredging Program Areia Branca Fortaleza Natal Cabedelo Recife Suape Maceió Salvador Aratu Vitória Barra do Furado S. Francisco do Sul Rio de Janeiro Itaguaí Fase 1 Itajaí Angra dos Reis Imbituba Rio Grande Santos Paranaguá Itaguaí Fase 2
25 Improvements of Port Infrastructure Construction of berths and ramps Mooring systems Port avenues Breakwater expansion Infrastructure modernization
26 Improvements of Port Infrastructure Vila do Conde US$ 69 mi Itaqui US$ 214 mi Luis Correia US$ 36 mi Areia Branca US$ 86 mi Suape US$ 50 mi Maceió US$ 28 mi Vitória US$ 74 mi Santos US$ 120 mi São Francisco do Sul US$ 25 mi Rio Grande US$ 298 mi
27 Fostering Investments
28 Private Investments - Infrastructure Vila do Conde Pecém Suape Porto Sul Barra do Riacho Açu Rio de Janeiro Itaguaí Santos Imbituba
29 See you soon in Brazil Thank you! November 2009