What happens then is unclear, as the incoming administration of President Luiz Inácio Lula da Silva may not proceed with wide-scale port privatisations.

A temporary contract, involving a simplified tender, was issued in August and won by CTIL Logística. However, Antaq, which oversees development of Brazil’s ports and waterways, suspended the award, on the grounds that CTIL is a bulk handler with no experience of container handling and would be “out of its depth”.

Antaq also wants to know how APMT will be indemnified in relation to the handling equipment it has installed in the terminal. This has been valued in the region of US$8.57M and will have to be bought by the port if no other solution is found.

CTIL has dismissed concerns about its competence to run the terminal, claiming it could easily double current throughput levels using existing equipment. APMT said it would like the interim concession, even though it declined to bid in August, claiming that it had not been given enough time to consider an offer. Indeed, bids had to be made in just 10 days. Nevertheless, APMT said channels remain open and it is talking to the port authority.

CTIL still expects to be allowed to go ahead and take over terminal operations, convinced that Antaq will find that its bid complies with the terms and conditions set out in the temporary tender. Even if it loses, APMT said it would cooperate with CTIL to ensure a smooth transition of operations. No equipment will be removed from the terminal, whoever eventually wins out.

In theory, Brazil’s Ministry of Infrastructure will go ahead with the privatisation auction for the entire port in December. On offer will be a 35-year concession, in exchange for investment in the region of US$545M. However, this awaits approval by the Federal Audit Court (TCU).