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stability, which has caused the movement of cargo to double in size. The capacity of the ports, however, has not experienced the same growth and should the current situation persist, by 2015 the capacity of public ports will be completely exhausted.
Driven by the need for changes in this picture and for an increase in pri-
vate investments, the Federal Government decided to introduce a set of new rules into the regulatory framework by enacting MP 595 so as to guarantee more legal certainty and wider competition in the sector.
Besides, the Federal Government has also announced a program for in-
vestments in logistics that embraces all the modals: ports, airports, railways and roadways. Among its core goals, this program aims at ending the barriers to the entry of new investors and encouraging an increase of private invest- ments in the sector. Concerning ports, it comprises an estimate of $30 bil- lion throughout all the regions of the country by 2017, besides special financing facilities at more favorable rates.
What are the main concerns and risks that clients interested in port investments should be aware of? Brazil is experiencing important regulatory changes. The former legal frame- work was entirely revoked by MP 595, which is still subject to approval by the National Congress (though it is already binding). Only after approval and promulgation of the New Ports Law will it be possible to know the de- finitive rules, how investments shall be made, the rights and obligations of private investors and the risks involved.
Therefore, it is necessary to wait for the final enactment of the new legal
framework for a better analysis of eventual investments in this sector in Brazil.
What are the main opportunities in the port sector? Infrastructure problems also generate opportunities. If one considers the strong need for major improvements in the infrastructure of Brazilian ports
Claudia Elena Bonelli Head – Administrative Law practice group and Logistics industry group
TozziniFreire São Paulo, Brazil
Tel: +55 11 5086 5380 Email:
cbonelli@tozzinifreire.com.br Web:
www.tozzinifreire.com.br
BRAZIL
due to the current inappropriate situation of their facilities, the new regu- lation imposed by the Government and yet to be enacted by the Congress has eliminated important barriers to the entry of private capital into the sec- tor.
“
Pedro Dittrich Head – Oil and Gas practice group
TozziniFreire Rio de Janeiro, Brazil
Tel: +55 21 3535 2100 Email:
pdittrich@tozzinifreire.com.br Web:
www.tozzinifreire.com.br
Another important and time-consuming aspect to be considered is excessive regulation. Red tape is a long-term issue
Before MP 595, owners of private terminals were obliged to manage their
own cargo together with that of their clients (they could not focus solely on providing transport services to other companies; they were expected to man- age their own goods as well, which meant that they could not have trans- portation as their sole business purpose). According to the new rules, the difference between a company’s own cargo and that pertaining to third par- ties no longer exists. This is an innovation that allows private terminals the possibility of having the specific purpose of transporting third party goods. This factor is expected to be seen by investors as a positive measure.
Thus, the setup of new private ports with the specific purpose of provid-
ing transportation services to the market is also considered to be an out- standing opportunity arising from the new regulation.
About the author Claudia has a deep knowledge of public sector-related matters. She works on issues related to bids, contracts and administrative covenants, public service concessions, public-private partnerships (PPP) and governmental permits, as well as administrative laws and regulations such as the Fiscal Responsibility Act. With a thorough knowledge of public-private relations and broad experience in the infrastructure sector, she has worked on many of Brazil’s largest infrastructure projects. Claudia is a graduate of the Law School of Universidade Federal de Santa Catarina and earned an LLM. degree in International Law from the University of Osnabrück, Germany.
About the author Pedro was one of the coordinators of the technical group that drafted the pre- salt bills at the Office of the Chief of Staff of the President of Brazil. In addition to his expertise as a lawyer in the energy, biofuel, and oil and gas sectors, Pedro also worked for seven years for the Brazilian Government, including the Ministry of Mines and Energy, and served as an audit board member at energy companies and as a legal adviser on the drafting of the Regulation of the Gas Sector. Graduated in Law and in Electrical Engineering from Universidade Federal do Rio Grande do Sul, and specialised in International Law from the same university, Pedro has a master’s degree in Corporate and Business Law from Pontifícia Universidade Católica de São Paulo. He is the coordinator of the Natural Gas work group of the Brazilian Institute for Studies of Energy Law, and member of the Association of International Petroleum Negotiators and of the Energy Institute.
ENERGY & INFRASTRUCTURE | LATIN AMERICA 2013 43
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