ABSTRACT
This chapter examines China’s role in Brazilian ports, which features both successes and failures. It highlights that openings for China’s increased involvement in Brazilian ports flowed from Brazil’s political and economic crisis which spurred the government to launch privatizations and concurrently reduced the ability of local firms to compete against Chinese ones. Chinese companies already were attracted to Brazil because of the country’s great economic and political significance, but the favorable investment environment and their strong interest in Brazil did not guarantee they would win projects or complete them. This is shown by, respectively, the cases of the Babitonga Grain Terminal and the Private Use Terminal in the Port of São Luís and Porto Sul, where red tape, politics, and other factors prevented or restricted Chinese participation. The Container Terminal of Paranaguá (TCP), in contrast to these three cases, was a total success. This resulted from the port’s features (e.g., existing railway connections and high quality development under previous management), a supportive regulatory environment, and CMP Holdings’ corporate strengths. CMP Holding’s involvement has resulted in the expansion and modernization of TCP, which, in turn, has fueled increases in TCP’s cargo volumes and new business links.
