Brazil's federal government plans to hold the auction of Santos port's massive Tecon 10 container terminal in the first half of March, Ports and Airports Minister Silvio Costa Filho said on Friday.
The auction has drawn interest from more than 10 potential bidders, he said, citing Philippines-based ICTSI and groups including JBS and JSL, as well as unnamed Arab investors.
The minister said the minimum bid value will be under 6.4 billion reais ($1.19 billion), which is the amount the winning bidder is expected to invest to build and operate the terminal during the contract.
Roberto Lopes, CEO of Rio Brasil Terminal, controlled by ICTSI, confirmed the group will participate in the auction and will bid alone, with no partners.
JBS, which is now listed in New York and has a contract to operate containers in southern Brazil, did not immediately return comment requests. Neither did JSL.
Earlier this week, Brazil's Federal Audit Court (TCU) voted six to three to recommend that operators of existing container terminals at the Santos port be barred from participating in the first phase of bidding, citing concerns over market concentration.
The decision has dealt a blow to companies such as Danish shipping group Maersk, MSC and others already operating container terminals in Latin America's largest port.
According to the recommendation, these companies would only be able to enter a second phase of the auction if the first does not attract valid bids.
($1 = 5.3876 reais)
(Reuters)