Maersk announces plans to enter delayed Brazilian port auctions

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Maersk Line has announced plans to compete in delayed auctions over the operating of terminals located in the north and north east of Brazil, when they are initiated.

A subsidiary of Denmark-based A.P. Moller-Maersk, Maersk Line, alongside several other private companies, has been denied bidding privileges in the past as the Brazilian government has attempted to strengthen its economy independently.

Speaking to Reuters, President of Maersk Line Brazil, Peter Gyde, noted that the company was prepared to invest in projects in Suape, near Recife and in Manaus. However, in order for them to do so they’ll “need the concessions to happen”.

Gyde noted the benefit of privatisation could already be seen with the opening of AMP’s BTP and DP World’s Embraport located in Santos, Brazil’s largest port.

The company sees fit to invest in the northern and north eastern coast of Brazil, which it sees as having the most potential to grow. However this can only happen, if the areas gain the correct infrastructure.

He noted that despite the successes in Santos, road quality must be improved if break-bulk transport rates are to increase.

President Dilma Rouseff’s US$100 billion plan to upgrade infrastructure with private capital has seen successes in both airport and road operations despite initial setbacks.

However the shipping industry is yet to have such luck.

Ports Minister Antonio Henrique Silveria has suggested that auctions to private companies could begin as soon as next month, despite objections from a federal court audit.

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