Strong competition expected in landmark Paranaguá port auction

The project foresees R$1.2 billion in investments and a 25-year contract, renewable for up to 70 years. The main work involves deepening the channel from 13 meters to 15.5 meters, which will allow larger vessels to access the port. The deepening is expected to be completed by the fifth year of the concession. The winning group will also be responsible for maintaining the channel’s depth through regular dredging and managing vessel navigation.

The Paranaguá project is one of the most anticipated in Brazil’s port sector because it is the first concession focused exclusively on a port’s waterway channel. As such, it is expected to serve as a model for other similar projects under study.

According to Frederico Dias, director-general of the National Waterway Transport Agency (ANTAQ), ports that may follow the same model include Santos (São Paulo), Itajaí (Santa Catarina), Rio Grande (Rio Grande do Sul), and several terminals in Bahia.

The Itajaí project has already been submitted to Brazil’s public spending watchdog (TCU) and is the most advanced, with an auction planned for the first half of 2026. The Santos channel concession will enter the public consultation phase in November, Mr. Dias said.

Studies are also underway for a partial concession in Bahia covering the ports of Salvador, Aratu, and Ilhéus, which could include channel management, though discussions are still ongoing. The project for the Port of Rio Grande channel is at an early stage, but authorities are working to hold the auction in 2026.

“The private sector is better equipped to manage port channels, which is why we are pursuing this concession model,” Mr. Dias said. “The public sector faces administrative complexities that hinder quick and efficient delivery, whereas the private sector can ensure better channel maintenance, more frequent hydrographic surveys, and safer monitoring.”

According to Rafael Schwind, partner at Justen, Pereira, Oliveira & Talamini, port authorities—currently responsible for channel maintenance—have long struggled to hire dredging services. “Brazilian legislation does not allow long-term contracts for dredging or construction works. Historically, that has been a major issue,” he said.

The process has also faced a number of challenges from interested companies. ANTAQ has so far disclosed four formal objections to the auction.

DTA Engenharia, Brazil’s leading dredging company, criticized the lack of restrictions on foreign state-subsidized players and requested mechanisms to prevent vertical integration among port operators, especially since the Paranaguá Container Terminal (TCP), the port’s main operator, is owned by China Merchants.

“By failing to consider potential market concentration, authorities overlooked that a Chinese dredging firm like CHEC could result in two Chinese state-owned companies operating in the same port,” said Renan Beloto, DTA’s legal manager. “We have nothing against the Chinese government, but it poses a national sovereignty risk.”

The company also requested clearer rules for vessel operations and docking, arguing that having the channel operator under the same control as one of the terminals could create conflicts of interest in managing ship traffic.

ANTAQ rejected the objections, stating that the project includes legal safeguards to ensure competition and that many of DTA’s criticisms had already been reviewed and dismissed in earlier stages, including by the TCU.

Mr. Dias said that objections are common in complex auctions of this kind, but added that the arguments raised had been properly addressed. “As for foreign participation, restricting it would affect all auctions that allow international bidders. On the contrary, we want more competition,” he said.

The Dutch dredging group Van Oord also filed an objection, arguing that the timeframe to analyze the auction documents was too short and requesting a 60-day deferral, which was denied. The other two objections came from Etesco Construções and CTC Infra, both rejected by ANTAQ. In addition, DTA and Etesco have filed separate petitions with the TCU.