The working group will comprise senior members from the Ministry of Transport, the Santos port authority (Codesp), and the regulatory body for waterways (Antaq).
"Santos is the key port for Brazil and Sao Paulo state, and if it is to remain competitive we must resolve this dredging problem," the president the National Federation of Port Operators (Fenop), Sergio Aquino, was quoted as saying in a report by IHS Media.
"On top of that, the port of Santos simply cannot continue with this instability, so the private initiative must be given a chance, as it proposes to guarantee the dredging," added Mr Aquino.Santos is Brazil's largest container port, and has been beset by draft restrictions and complications regarding dredging that the Santos and Sao Paulo Shipagents Association says have resulted in rolled cargo and losses of "hundreds of millions of dollars" for carriers and shippers alike.
One idea that is backed by the country's biggest shipping lobbies is the establishment of a specific purpose company, which would be a nonprofit tasked with ensuring that dredging occurs in a timely fashion. Backers include Fenop, the Sao Paulo and Santos Association of Port Operators, the Brazilian Association of Port Terminals, and the Association of Private Terminals.
Leading executives for shipping lines operating in Brazil are keen for the privatisation of dredging, but are concerned they would be asked to pay twice.
"Sure, we can pay port tariffs for a privatised process, but we will need a rebate for the tariffs we are already paying to Codesp," said one executive.
However, some in the industry have raised doubts about privatisation. "I cannot really see the new equation playing out well," said director for Navegantes-based maritime consultancy SOLVE Shipping, Robert Grantham, who has worked as a commercial director for the Itajai Port Authority.
"Dredging tariffs are used to support Codesp, and without that they will be short of funding, and it would be unfair if the carriers had to pay twice over.
"Perhaps a better solution would be for a consortium of port authorities to set up their own company and possibly even buy a dredger to carry out permanent maintenance dredging for clusters of ports. Santos would probably need its own, but in Santa Catarina the dredger could be operated at three or four different ports: Itajai, Navegantes, Itapoa, Imbituba, [and] Sao Francisco do Sul."
"Santos is the key port for Brazil and Sao Paulo state, and if it is to remain competitive we must resolve this dredging problem," the president the National Federation of Port Operators (Fenop), Sergio Aquino, was quoted as saying in a report by IHS Media.
"On top of that, the port of Santos simply cannot continue with this instability, so the private initiative must be given a chance, as it proposes to guarantee the dredging," added Mr Aquino.Santos is Brazil's largest container port, and has been beset by draft restrictions and complications regarding dredging that the Santos and Sao Paulo Shipagents Association says have resulted in rolled cargo and losses of "hundreds of millions of dollars" for carriers and shippers alike.
One idea that is backed by the country's biggest shipping lobbies is the establishment of a specific purpose company, which would be a nonprofit tasked with ensuring that dredging occurs in a timely fashion. Backers include Fenop, the Sao Paulo and Santos Association of Port Operators, the Brazilian Association of Port Terminals, and the Association of Private Terminals.
Leading executives for shipping lines operating in Brazil are keen for the privatisation of dredging, but are concerned they would be asked to pay twice.
"Sure, we can pay port tariffs for a privatised process, but we will need a rebate for the tariffs we are already paying to Codesp," said one executive.
However, some in the industry have raised doubts about privatisation. "I cannot really see the new equation playing out well," said director for Navegantes-based maritime consultancy SOLVE Shipping, Robert Grantham, who has worked as a commercial director for the Itajai Port Authority.
"Dredging tariffs are used to support Codesp, and without that they will be short of funding, and it would be unfair if the carriers had to pay twice over.
"Perhaps a better solution would be for a consortium of port authorities to set up their own company and possibly even buy a dredger to carry out permanent maintenance dredging for clusters of ports. Santos would probably need its own, but in Santa Catarina the dredger could be operated at three or four different ports: Itajai, Navegantes, Itapoa, Imbituba, [and] Sao Francisco do Sul."