ABRATEC Private operators boost Brazilian ports Ministry of
External Relations Trade and Investment Promotion Department Trade
Promotion Programmes Division Brazilian Embassy Rome May 26, 2011
Andreas Klien ABRATEC Associao Brasileira dos Terminais de
Contineres de Uso Pblico
Slide 2
ABRATEC 1. Brazils Port Modernization Program 2. Private
operators boost public ports 3. Bulk cargos predominate in
privately owned terminals 4. Challenges and opportunities ahead
Ministry of External Relations Trade and Investment Promotion
Department Trade Promotion Programmes Division Brazilian Embassy
Rome May 26, 2011 Private operators boost Brazilian ports
Slide 3
ABRATEC Brazil's exports grow 38% and imports 34% - more than
China's! Surprise: Brazil leads in export and import growth Source:
World Trade Organization
Slide 4
ABRATEC ANTAQ* published new General Concession Plan** Source:
ANTAQ * ANTAQ National Waterways Agency ** PGO Plano Geral de
Outorgas (General Concession Plan)
Slide 5
ABRATEC SEP executed ambitious dredging program Source: SEP
Ministry of Ports Investments: PAC 1 R$1.8 billion and PAC 2 R$2.9
billion New Berths New quay length Expansion of current quay
Expanded quay length: 1,960m
Slide 6
ABRATEC Successful and unique port model Public ports Privately
operated Privately owned terminals Implementation Mandatory public
bidding process Authorization granted by the Government (no need
for public bidding process) Term Up to 50 years (including renewal)
Required to provide uninterrupted service Unlimited term for the
specific economic activity Possibility of interruption of service
Assets Return of the assets (reverso de bens) at the expiry of the
concession agreement No return of assets to the government (reverso
de bens) Services Public service Available to any and all users
Price supervision Private service For exclusive use (own cargo) or
For mixed use (predominance of own cargo complemented by third
party cargo) Free to choose users Free to set prices Labor
Restricted to specific regulation (OGMO)Employed according to
national labor laws Regulation Res. 55/2002 Regulates the lease of
the areas and of its facilities and unifies the terms and
conditions applicable to the lease agreements Res. 1,695/2010
Regulates the operation of the private use terminals; applicants
must demonstrate predominance of own cargo, and third party cargo
must be of the same nature of own cargo only on a complementary
basis Public ports operated by private operators (landlord model)
and creation of mixed-use privately owned terminals
Slide 7
ABRATEC President Lula confirms regulatory framework...
Brazilian Constitution 1988 Port operation: by the Government
directly or through the grant of authorization, concession or
permit article 21 Government has exclusive powers to regulate ports
article 22 Mandatory tendering of public services article 175 Port
Modernization Law No. 8,630/1993 and Law 11.518/2007 Law
establishes two different types of port terminals: I Public/Common
Use II Private Use Exclusive, relating to the handling of own cargo
Mixed, relating to the handling of own cargo and third party cargo
Tourist, relating to passengers Transshipment Creation of ANTAq Law
10.233/2001 National Waterway Transport Agency (Agncia Nacional de
Transportes Aquavirios -ANTAQ): in charge of regulating and
supervising port activities of Waterway Transportation Creation of
SEP Law 11.518/2007 Special Ministry of Ports (Secretaria Especial
de Portos -SEP): empowered to set forth the policies and principles
for the port sector Presidential Decree 6.620/2008 Reinforces
current Brazilian Port Industry Regulation and establishes rules
for granting concession rights for the exploration of new public
port complexes (Portos Organizados) Portaria 108, 2010 SEP-PR
Specifies guidelines for granting concession for new public marine
ports Portaria 131, 2010 SEP-PR Specifies procedures for
establishing, preparation and selection of the basic design for
public marine ports able for concession and establishes rules for
concession of new public ports
Slide 8
ABRATEC 1. Brazils Port Modernization Program 2. Private
operators boost public ports 3. Bulk cargos predominate in
privately owned terminals 4. Challenges and opportunities ahead
Ministry of External Relations Trade and Investment Promotion
Department Trade Promotion Programmes Division Brazilian Embassy
Rome May 26, 2011 Private operators boost Brazilian ports
Slide 9
ABRATEC Private operators boost general cargo Source: ANTAq and
Ministrio dos Transportes Cargo handled in Brazilian ports Million
tons General CargoDry BulkLiquid BulkTotal
19992009%19992009%19992009%19992009% Public ports
3572106%66148124%314029%13226097% Privately owned terminals
1330131%17628562%11415839%30447356% Total
48102113%24243378%14519834%43673376% and privately owned terminals
expand bulk cargo throughput Public ports Privately owned
terminals
Slide 10
ABRATEC Container terminal throughput grows 391% Billion
dollars Source: ABRATEC e BACEN Million containers Container
throughputInternational trade flow and trade flow rises from US$100
billion to US$355 billion
Slide 11
ABRATEC 3 IPOs raised R$2.5 billion and funded second phase of
expansion program Company Share/Unit Price (R$) Equity Value (R$
Million) Enterprise Value (R$ Million) Current52-week high52-week
low Santos Brasil29.8531.3014.00 3,992 4,350 Log-In8.4410.506.00
780 1,121 Wilson Sons30.0133.1618.752,2052,489 Total 6,9777,960 *
IBOV - So Paulo Stock Exchange Index
Slide 12
ABRATEC US$2.85 billion invested in public container terminals
Source: ABRATEC and additional US$4 billion to be invested by 2015
* Productivity (mph) refers to container moves per hour per
ship.
Slide 13
ABRATEC TECON Santos + TEV: 1,290m quay = 1,351,107 TEU in 2010
Source: Santos-Brasil Guaruj, So Paulo Current capacity 2,200,000
TEU
Slide 14
ABRATEC Source: Libra Terminais Santos Santos, So Paulo Libra
Santos: 1,094m quay, 766,187 TEU in 2010 After expansion, 1,700m
quay, capacity 1,800,000 TEU
Slide 15
ABRATEC BTP: Santos new public container terminal MSC and APM
Terminals announce mid 2013 opening with estimated capacity of
1,100,000 TEU and 1.2 million tons of liquid bulk Source: Brasil
Terminal Porturio Santos, So Paulo
Slide 16
ABRATEC TCP Paranagu: 564m quay, 677,623 TEU in 2010 Source:
Terminal de Containers de Paranagu Paranagu, Paran After expansion,
880m quay, capacity 1,200,000 TEU
Slide 17
ABRATEC TECON Rio Grande: 850m quay, 666,242 TEU in 2010
Source: TECON Rio Grande Rio Grande, Rio Grande do Sul Current
expanded capacity 1,500,000 TEU
Slide 18
ABRATEC TECON Sepetiba: 540m quay, 295,429 TEU in 2010 Source:
TECON Sepetiba Itagua, Rio de Janeiro After expansion, 810m quay,
capacity 670,000 TEU
Slide 19
ABRATEC TECON Vila Velha: 450m quay, 249,072 TEU in 2010
Source: LOG-IN Vila Velha, Esprito Santo Current capacity 340,000
TEU
Slide 20
ABRATEC TECON SUAPE: 935m quay (660m private + 275m public),
340,396 TEUs in 2010 Source: TECON SUAPE S/A. Suape, Pernambuco
Current capacity 600,000 TEU
Slide 21
ABRATEC Rios TECON 1 and 2 + Ro-Ro: 1,258m quay, 443,001 TEU in
2010 After expansion: 1,960m quay, capacity 2,000,000 TEU Source:
Libra Terminal Rio and Multiterminais Rio de Janeiro, RJ
Slide 22
ABRATEC 1. Brazils Port Modernization Program 2. Private
operators boost public ports 3. Bulk cargos predominate in
privately owned terminals 4. Challenges and opportunities ahead
Ministry of External Relations Trade and Investment Promotion
Department Trade Promotion Programmes Division Brazilian Embassy
Rome May 26, 2011 Private operators boost Brazilian ports
ABRATEC New Thyssen-Krupp CSA privately owned terminal 3.8 km
access bridge, dedicated to coal imports and steel exports Source:
Stahllog Itagua, Rio de Janeiro
Slide 25
ABRATEC LLXs Superporto A under construction Inauguration
planned for 2012 Source: LLX So Joo da Barra, Rio de Janeiro
Slide 26
ABRATEC Another privately owned terminal: LLXs Porto Sudeste
Inauguration of iron-ore export terminal announced for 2012 Source:
LLX Itagua, Rio de Janeiro
ABRATEC 1. Brazils Port Modernization Program 2. Private
operators boost public ports 3. Bulk cargos predominate in
privately owned terminals 4. Challenges and opportunities ahead
Ministry of External Relations Trade and Investment Promotion
Department Trade Promotion Programmes Division Brazilian Embassy
Rome May 26, 2011 Private operators boost Brazilian ports
Slide 29
ABRATEC Brazils huge cabotage market 7.367 km of coastline 80%
of the population living within 200 km of the coast Industrial
activity concentrated along the coast Source: IBGE, CNNT Suape
Fortaleza Salvador Manaus Santos Paranagu Itaja Itagua Rio Grande
Rio de Janeiro Vitria NY Miami 1,751 Km Distance Cabotage is
Brazils logical transportation mode Pecm North America Europe Far
East
Slide 30
ABRATEC Significant upside potential remains Source: World Bank
Economy Openness 2009 (Merchandise Trade / GDP) 19962009 India
ArgentinaIndonesia Venezuela MexicoChinaChile South Korea Russia
vis--vis Latin American peers and BRICs
Slide 31
ABRATEC Port reform enables Brazils economic openness Source :
Brazils Central Bank / IBGE International Trade GDP 2.09x
199620102011* GDP (US$ billion)84016791755 International Trade (US$
billion)101355443 Openness of the economy (%)122125 4.38x
*Estimated figures 2011 AEB Brazilian Exporters Association * * *
3.55x 2.00x
Slide 32
ABRATEC Links Thank you Andreas Klien [email protected] Private
operators boost Brazilian ports Link to this
presentationHTTP://WWW.TINYURL.COM/3BLZ3UW ABRATEC
homepageHTTP://WWW.ABRATEC-TERMINAIS.ORG.BR Multi-Rio Operaes
Porturias S/AHTTP://WWW.MULTITERMINAIS.COM.BR Tecon Salvador
S/AHTTP://WWW.TECONSALVADOR.COM.BR Libra Terminais Santos
S/AHTTP://WWW.T37.COM.BR Santos Brasil
S/AHTTP://WWW.SANTOSBRASIL.COM.BR Tecon Rio Grande
S/AHTTP://WWW.TECON.COM.BR Libra Terminal Rio
S/AHTTP://WWW.TERMINAL1RIO.COM.BR TCP Terminal de Contineres de
Paranagu S/AHTTP://WWW.TCP.COM.BR Terminal de Vila Velha S/A
HTTP://WWW.LOGINLOGISTICA.COM.BR/SERVICO/TERMINAL- PORTUARIO.ASPX
Tecon Suape S/AHTTP://WWW.TECONSUAPE.COM.BR TECONDI Terminal para
Contineres da Margem Direita S/AHTTP://WWW.TECONDI.COM.BR Sepetiba
Tecon S/A HTTP://WWW.CSN.COM.BR/IRJ/PORTAL/ANONYMOUS?GUEST_
USER=USER_TECON_PT TESC Terminal Santa Catarina
S/AHTTP://WWW.TERMINALSC.COM.BR CONVICON Contineres de Vila do
Conde S/AHTTP://WWW.SANTOSBRASIL.COM.BR ABRATEC