Port Opportunities in Brazil

Port Finance InternationalCentro de Convenções Bolsa do Rio

Rio de Janeiro - RJ, 5 de outubro de 2011

Fernando Antonio Brito FialhoGeneral-Director - ANTAQ

Área total 8.514.876 Km²

Estados 27

Litoral 8.511 Km

População 192 milhões

PIB 2010 US$ 2.194Fonte: MDICMilhõesAnuário Estatístico-2010

Cobertura vegetal = 28,3%

Brazil: General Data

Total Area 8,514,876 Km²

States 27

Coastline 8,511 Km

Population 192 million

GDP 2010 US$ 2.194Source: MDIC (Millions)Statistical Yearbook -2010

Vegetal coverage = 28.3%

2

Brazil is the largest economy in

South America8th largest worldwide

*Source: International Monetary Fund, World Economic Outlook Database, April 2010

• Created by Law 10.233 of June 5, 2001.

• Law 10.233/01: • Reestructures waterway and land transportation• Creates CONIT, ANTAQ, ANTT and DNIT

• Linked to Ministry of Transportation – MT – and Secretariat of Ports – SEP.

• regulation, supervision and harmonization of port activities and water transportation

ANTAQ: institutional aspects4

Port Authority

(grant)

Brazilian Waterway

Infrastructure

Private Use Terminals

(authorization)

Shipping Companies

(authorization)

RegulationSupervision

RegulationSupervisionAuthorization

Administrative Delegation

Leases (Subconcession)

U n i o n

State Structure5

TransportationMinistry of Transportation

The role of the regulator 6

1967MT arises1960

In the 1960’s the first

Docas Companies arise

1975Portobras

1990Extinctions : Portobras,

MT and creation of

MINFRA

1992Extinction of MINFRA and creation of

MTC

1993Comeback of

MT and publication

of Law 8.630/93 1995

Law 8.987/95Law on

Concessions and Permits

2001Creation of

CONIT, DNIT, ANTT and

ANTAQ: Law 10.233/01

2005Res. 517-ANTAQ

Regulates the exploitation of

Private Use Terminal - TUP

2008Dec. 6.620

Regulates the granting for

exploitation of Public Terminals

and Ports

2010Res. 1.660-ANTAQ

Regulates the exploitation of TUP:

replaces Res. 517

Creation of the new organizational structure for Public Ports with the emergence of the Governing Body of Port Temporary Labor Manpower (OGMO) and the Port Authority Council (CAP) and the Port Authority (PA).

2002Res. 55-ANTAQ

Regulates leasing of Public Port

Waterway Sector: timeline7

Direct grantDirect grant

Delegation AgreementDelegation Agreement (Ministry of Transportation – Government of Maranhão/EMAP)

Grant to the State of Grant to the State of Santa Catarina (state)

Grant by bid of Organized PortGrant by bid of Organized Port

Authorization for Adhesion ContractAuthorization for Adhesion Contract

Private GrantPrivate Grant

Types of port exploitation – Law 8.630/938

UNIONLease

(subconcession)

AuthorizationAuthorization

Exclusive TUP Joint TUP IP4Tourism TUP ETC

Organized Port – granted by the Union to a Port Administration

Port facilities– Law 8.630/939

AMAZONASPARÁ

AMAPÁRORAIMA

RODÔNIA

MATO GROSSO

TOCANTINS

GOIÁS

MATO GROSSODO SUL

MARANHÃO

PIAUÍ

CEARÁRIO GRANDEDO NORTE

PARAÍBA

PERNAMBUCO

ALAGOAS

BAHIA

MINAS GERAIS

SÃO PAULO

ESPÍ

RITO

SAN

TO

PARANÁ

SANTACATARINA

RIO GRANDEDO SUL

SERGIPE

RIO DE JANEIRO

ACRE

MANAUSSANTARÉM

BELÉMVILA DO CONDE

ITAQUI

FORTALEZA

AREIA BRANCA

NATAL

CABEDELO

SUAPE

MACEIÓ

SALVADOR

ARATU

ILHÉUSBARRA DO RIACHO

VITÓRIA

RIO DE JANEIROITAGUAÍ (Sepetiba)

SÃO SEBASTIÃOSANTOS

PARANAGUÁSÃO FRANCISCO DO SULITAJAÍ

IMBITUBA

PELOTASRIO GRANDE

MACAPÁ

RECIFE

NITERÓIFORNO

ANTONINA

ANGRA DOS REIS

PORTO ALEGRELAGUNA

PUBLIC MARITIME PORT

34

10

AMAZONASPARÁ

AMAPÁ

RORAIMA

RODÔNIA

MATO GROSSO

TOCANTINS

GOIÁS

MATO GROSSODO SUL

MARANHÃO

PIAUÍ

CEARÁRIO GRANDEDO NORTE

PARAÍBA

PERNAMBUCO

ALAGOAS

BAHIA

MINAS GERAIS

SÃO PAULO

ESPÍ

RITO

SAN

TO

PARANÁ

SANTACATARINA

RIO GRANDEDO SUL

SERGIPE

RIO DE JANEIRO

ACRE

MANAUSSANTARÉM

BELÉM

VILA DO CONDE

ITAQUI

FORTALEZA

AREIA BRANCA

NATAL

CABEDELO

SUAPE

MACEIÓ

SALVADOR

ARATU

ILHÉUS

BARRA DO RIACHO

VITÓRIA

RIO DE JANEIROITAGUAÍ (Sepetiba)

SÃO SEBASTIÃOSANTOS

PARANAGUÁSÃO FRANCISCO DO SUL

ITAJAÍ

IMBITUBA

PELOTASRIO GRANDE

MACAPÁ

RECIFE

NITERÓIFORNO

ANTONINA

ANGRA DOS REIS

PORTO ALEGRELAGUNA

14 TUP

13 TUP

Rio = 22 TUP

RS= 16 TUP

SC= 11 TUP

PRIVATE USE PORT TERMINALS

(TUP)

129

ETCETC

ES = 9 TUP

BA = 8 TUP

11

12

PUBLIC PORT BYPUBLIC PORT BYLEASINGLEASING

(BID)(BID)

PRIVATE PORT BY PRIVATE PORT BY AUTHORIZATIONAUTHORIZATION

ORGANIZED PORT BY ORGANIZED PORT BY CONCESSION CONCESSION (BID)(BID)

LEGAL BASE • Laws 8.630/93 and 8.666/93• Decrees 6.620/08, 4.391/02

and 6.413/08• Res ANTAQ 55/02 (under review)• Normative Instruction TCU

27/08

• Law 8.630/93• Decree 6.620/08• Resolution ANTAQ 1.660/10

• Laws 8.630/93 and 8.987/95

• Decree 6.620/08• Ordinance SEP 108/10

PECULIARITIES • Assignment of use of public good

• Evaluation of the enterprise• Term of up to 50 years• Reversibility of goods to the

Union• Use of OGMO

• Term of up to 50 years• Possibility of operation in a

consortium• Authorization for shipyards

and offshore support bases• Exclusive use - just own

cargo• Joint Use – own and third

party's cargo

• Bidding for private initiative

• Granting of the exploitation of PO to corporate or private entity, through public bidding

• Bidding in charge of ANTAQ, subject to the guidelines of PGO

PORT TERMINALS ORGANIZED PORT

Waterway Legislation – Rules

13

Operational Areas and Facilities

Lease

Temporary Use

Passage

Non-Operational Areas and Facilities

Lease (Port Revitalization)

Free Assignment of Use

Onerous Assignment of Use

Use Permit

ANTAQ ACTIONS: Adequacy of ResolutionsRevision of Resolution 55 - new aspects

14

MAIN INNOVATIONS Adhesion Agreement (art. 1, par. 1)

Issuance of Transaction Release Term (TLO). (art. 1, par. 1) Best definition of own cargo (art. 2, IV) Best definition of third parties’ cargo Definition of possible and subsidiary transaction Establishment of Special Purpose Company (SPE) Shipyards and offshore support bases as Exclusive TUP Sharing of docking infrastructure in contiguous TUP Mandatory integration to ANTAQ's SDP system ANTAQ may determine the use of OGMO in TUP with conflict SUDENE, SUDAM and SUDECO: development of own cargo

Adequacy of ResolutionsResolution 517 to Resolution 1.660

Valuing of Planning

• National Plan for Logistics and Transportation - PNLT• PGO - General Port Concession Plan• Update of PDZ of Public Ports• Waterway PGO – Ports and Waterways• PNLP – National Plan for Port Logistics• PNIH – National Plan for Waterway Integration• Current and Reliable Statistics

Investments for Improvement of Port Management

• Port without Paper• VTMS System

Valuing of Multimodal Integration

• Incentive to Cabotage• Investment in Waterways

Change in Behavior Towards the Environment

• Licensing of Ports• Break the Paradigm in Waterways

Improving the Regulatory Framework

• Update of Resolutions

Key developments of the waterway industry15

Source: ANTAQ – Statistical Yearbook 2010 and MDIC, Alice System (http://aliceweb.desenvolvimento.gov.br/)Source: ANTAQ – Statistical Yearbook 2010 and MDIC, Alice System (http://aliceweb.desenvolvimento.gov.br/)

Brazil: export and import(maritime, in tons and US$ FOB)

16

Chain of Commerce VS movement in Brazilian ports

17

833.882.797 t833.882.797 t

CABOTAGECABOTAGE188,011,104 t188,011,104 t

22.55%22.55%LONG LONG

DISTANCEDISTANCE616,397,721 t616,397,721 t

73.92%73.92%

INLANDINLAND29,473,972 t29,473,972 t

3.53%3.53%

EXPORTEXPORT489,594,125 t489,594,125 t

79.43%79.43%

IMPORTIMPORT126,803,596 t126,803,596 t

20.57%20.57%

Brazilian Ports: movement in 201018

Brazilian Ports:Most handled goods

91% OF THE TOTAL CARGO

MOVEMENT IN 2010

19

IRON ORE

FUELS AND MINERAL OILS AND PRODUCTS

CONTAINERS

SOY

BAUXITE

SUGAR

FERTILIZERS MANURES

COAL

METALLURGICAL PRODUCTS

CORN

SOY BRAN

CELLULOSE

OIL COKE

WHEAT

NORTE NORTHEAST

SUDESTE SOUTH

Brazilian Regions: participation in cargo movement

20

NORTH

Participation of the Southeast region of Brazil in the movement of cargo by nature of cargo

Statistics: Quarterly Bulletin of ANTAQMovement 1st and 2nd semesters of 2011

21

Indicator Period Status Variation

CONTAINER(TEU)

1st quarter 2011 compared to the1st quarter 2010

+20.93%

CONTAINER(TEU)

2nd quarter 2011compared to the2nd quarter 2010

+16.66%

CONTAINER 1st semester 2011 compared to the1st semester 2010

+18.66%

Só combustível Todos os produtos Sem considerar combustívelPeríodo

Port statistics:1st semester 2010 VS. 1st semester 2011

22

CABOTAGEPeriod Fuel Only All Products Fuel not considered

Só combustível Todos os produtos Sem considerar combustívelPeríodo

Port statistics:1st semester 2010 VS. 1st semester 2011

23

CABOTAGE – VARIATION (%) 2011/2010

Period Fuel only All products Not considering fuels

II 11 / II 10 5.6% 9.5% 18.5%

Accum. 2011/Accum.2010 4.3% 8.2% 16.9%

• New solutions for the exploitation model of ports where there is:

More integration between the various bodies involved More involvement by the private initiative (concessions and leasings) Profissionalized Management More flexible legal framework

• There is high market appetite by the private sector with regard to investment in infrastructure and port services

Ports: actions to meet future demands

24

• Expansion and Modernization of Oil Tanker Fleet (PROMEF)

• Demand by Petrobras for Exploration of Pre-Salt

• Public Policy for the Protection of Cabotage

• Construction of New Container Vessels

• To ensure the Flow of Resources for the Necessary Expansion

• To equate the offer of Labor of Maritime

• To maintain the Public Policy of Investment in the Industry

• To overcome Operating Costs Barriers

Maritime transport: needs25

• Exploration and Exploitation of Oil : offshore support

• Shipyards: inducing Transpetro demands

• Installation of chemical and petroleum industries in clusters

Exploration and exploitation of oil26

Opportunities: Northern Region27

Containers

Bulk solids

Bulk liquids

General cargo

Installing company

Tourism

Opportunities: Northeast28

Containers

Bulk solids

Bulk liquids

General cargo

Installing company

Tourism

Opportunities: Southeast29

Containers

Bulk solids

Bulk liquids

General cargo

Installing company

Tourism

Containers

Bulk solids

Bulk liquids

General cargo

Installing company

Tourism

Opportunities: South Region30

Opportunities - TUP31

AUTHORIZED – IMPLEMENTATION UNDER WAY

COMPANY MUNICIPALITY STATE AUTHORIZATION MODALITY

1 EMBRAPORT- EMPRESA BRASILEIRA DE TERMINAIS SANTOS SP TA 246/06 MIXED

2 IMBITUBA EMPREENDIMENTOS E PARTICIPAÇÕES S/A IMBITUBA SC TA 362/07 MIXED

3 LLX AÇU OPERAÇÕES PORTUÁRIAS S.J. DA BARRA RJ CA 03/2010 MIXED

4 LLX MINAS – RIO LOGÍSTICA S.J. DA BARRA RJ TA 443/08 MIXED

5 LLX SUDESTE OPERAÇÕES PORTUÁRIAS LTDA ITAGUAI RJ CA 01/2010 MIXED

6 PETRÓLEO BRASILEIRO S/A – PETROBRAS ARACRUZ ES CA 04/2011 EXCLUSIVE

7 PETRÓLEO BRASILEIRO S/A – PETROBRAS RIO DE JANEIRO RJ TA 516/09 MIXED

8 RIO TURIA SERVIÇOS LOGÍSTICOS LTDA BARCARENA PA TA 314/07 MIXED

9 TPM – TERMINAL PORTUÁRIO DO MEARIM LTDA BACABEIRA MA TA 459/08 MIXED

10 VALE S/A (PIER IV – AMPLIAÇÃO) SÃO LUIS MA CA 04/93 MIXED

CONCESSION REQUESTS UNDER EXAMINATIONCOMPANY MUNICIPALITY STATE AUTHORIZATION MODALITY

1 EAS – ESTALEIRO ATLÂNTICO SUL S/A IPOJUCA PE EXCLUSIVE

2 FERROUS RESOURCES DO BRASIL S/A PRESIDENTE KENNEDY ES EXCLUSIVE

3 NUTRIPETRO ARACRUZ ES EXCLUSIVE

4 PETRÓLEO BRASILEIRO S/A – PETROBRAS ILHA DO FRADE BA MIXED

5 SÃO PAULO EMPREENDIMENTOS LTDA SANTOS SP MIXED

6 SUBSEA 7 DO BRASIL SERVIÇOS LTDA PONTAL DO PARANÁ PR EXCLUSIVE

Leasing Opportunities - North32

PORT STATE OBJECTIVE AREA (m²) TIME PERIOD

Belém PA Container Handling and Storage 61,685,59 25Santarém PA Implementation of 2nd Plant-Based Solid Bulks Terminal 31,690,00 25

Belém PA Fuels and mineral oils – Miramar 14,216,00 25Vila do Conde

PA TMU2 – Plates and Bobbins Terminal and Coal Terminal 213,413,00 25

Belém PA Fuel Storage

Vila do Conde

PA Aluminum Industrialization 25

Leasing Opportunities - Northeast33

PORT STATE OBJECTIVE AREA (m²) TIMEPERIO

DMaceió AL Handling and Storage of Sugar 71,260,00 25Maceió AL Implementation of company project for the assembly of industrial

equipment26,500,00 25

Aratu BA Handling and Storage of Agricultural Bulks 31,303,50 25Aratu BA Handling and Storage of Liquid Bulks 10,137,92 25Aratu BA Liquefied Gas Terminal 25,019,33 25Aratu BA Gas Products Terminal 25,202,12 25Ilhéus BA Handling of Containers and General Cargo 40,257,00 25

Salvador BA Handling and Storage of Containers and General Cargo 34,539,12 25Aratu BA Storage for Solid Bulks 31,303,50 25

Salvador BA Handling and Storage of Containers – Improvement 44,471,32 25Itaqui MA Handling and Storage of Agricultural Bulks 161,308,00 25Itaqui MA Improvement of Port Facilities not included in leasing contract 13,491,24 20Itaqui MA Handling and Storage of Agricultural Bulks 8,279,00 25

Cabedelo PB Grains Terminal 6,475,00

Suape PE Storage, Bottling and Distribution of Liquefied Petroleum Gas 24,000,00 25Suape PE Handling and Storage of Sugar 72,542,00 25Suape PE Handling of General Cargo 9

Suape PE Handling of General Cargo 20,000,00 25Suape PE Handling of General Cargo

Suape PE Handling and Storage of Containers 25

Suape PE Handling and Storage of Solid Bulks 337,876,00 25Suape PE Handling and Storage of Liquid Bulks 80,000,00 25Suape PE Customs Terminal and Bonded Warehouse 10,000,00 25Suape PE Bulk and Packaged Chemicals Terminal 25

Suape PE Integrated Hotel, Convention and Exhibition Commercial Complex 34,224,92 25Suape PE Container Terminal Expansion 25

Suape PE Container Handling at Port 20,000,00 25

Leasing Opportunities: Southeast34

Leasing Opportunities: South35

PORT STATE OBJECTIVEParanaguá PR Investment in terminal modernization by the acquisition of a

Porto Alegre RS General Cargo, Containerized or Not

Porto Alegre RS Commercial, Hotel, Conventions and Exhibitions Complex

Imbituba SC Handling and Storage of Fertilizers and Animal Feed

Imbituba SC General Cargo, Containerized or Not

Imbituba SC Handling of Containerized Cargo

Vitória ES Handling and Storage of Bobbins of Umbilicals and Flexible Tubes

Vitória ES Handling and Storage of Malt

Vitória ES Industrial Unit for the production, repair and conditioning of flexible tubes for oil extraction on Brazilian ocean shelf

“Many people have ideas and are creative. Some people turn ideas into dreams, and they are persistent. But few turn dreams into reality, and these are the ones who change the world.” Steven Jobs

36

Fernando Antonio Brito FialhoGeneral-Director

fernando.fialho@antaq.gov.br

0800-6445001www.antaq.gov.br