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The Port Modernisation Law (ID: 14423)
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I - OBJECTIVE: Summary of the current situation at the ports managed by CDP, according to the Law nr. 8630/93, of 25/Feb/93, which modifies the legal regimen of the organized ports. II -METTHODOLGY Comments on the various chapters and articles of the law, focusing on their effects upon CDP. We thus recommend that you keep the text of the law at hand while reading these comments. (Law 8630) III - DEVELOPMENTS: 3.1 - CHAPTER I - EXPLOITATION OF THE PORT AND PORT OPERATIONS 3.1.1- All the organized ports of the States of Para and Amapa are managed by the Companhia Docas do Para - CDP, and are not directly exploited by the Federal Union. 3.1.2- Ports managed by CDP: Belem, Santarem, Miramar, Vila do Conde, Barcarena, Itaituba, Altamira, Obidos, Maraba and Macapa. Besides these ports CDP also manages the Waterways of Eastern Amazon, with headquarters in Belem (State of Para) and of Tocantins-Araguaia, with headquarters in Goiania (State of Goias), further to the Administrative Decentralization Agreement nr. 003/90, signed by the Federal Union in 1990, after Portobras extinction. The port of Porto Velho was under CDP's administration, but was handed over to the State of Rondonia, under the same aforementioned agreement, in Dec. 1, 1997, through the Delegation Agreement nr. 06/97. 3.1.3- There are currently twenty (20) Port Operators authorized to work in the organized ports managed by CDP. Besides CDP (first operator), there are the following companies: Alunorte, Albras, Amcel, Agenavi, Aquashipping, Brisa Shipping, Copral, Consulmar, Expresso Mercantil, GRP Maquinas, Intermares, Ocrim, Paranav, Rio Matapi, Rodoviario Vilaca, Transnav, Termaco, Transeixas, and Wilport. With the increasing competition and the need of higher investments by the operators, this number tends to decrease to approximately ten (10) companies. 3.1.4- The areas of the organized ports of Belem (including Miramar), Vila do Conde, Santarem, and Macapa have already been customized according to the new law, with their legal status published in the D.O.U. (Federal Union official daily newspaper). 3.1.5- The main private facilities outside the areas of the organized ports are: Porto Trombetas/PA (Mineracao Rio do Norte), Jari Celulose/PA, and CADAM/PA (Jari Project). Besides these facilities, there are currently six (6) terminals with customs, legally authorized to export their own cargoes (timber) in the island region of the Sate of Para. 3.1.6- The main private facilities within the areas of the organized ports are: Para Pigmentos S/A, and Rio Capim Caulim S/A, both dealing with kaolin processing and exportation, located in the port of Vila do Conde. 3.1.7- There is an harmonious cooperation among all legal authorities working in the organized ports managed by CDP, and it is worth to mention that the PROHAGE (Program for the Harmonization of the Activities of the Authority Agents in the Ports) is one of the most active ones in Brazil. 3.2 - CHAPTER II - PORT FACILITIES 3.2.1- There are several ongoing and concluded leasing processes for some areas of the ports. Among the concluded ones we can list the Texaco Back port Terminal, two areas of Soinco da Amazonia S/A, and one of Fertilizantes Ouro Verde S/A, in the port of Vila do Conde, plus the lot #4 in the port of Santarem. Among the ongoing processes, we can list one area for the Para Pigmentos S/A, in the port of Vila do Conde and the containers area in the port of Macapa. On the other hand, the warehouse Mosqueiro-Soure and the warehouses nrs. 1, 2, and 3 were included in the REVAP, a joint entrepreneurship of the Government of the Sate of Para and CDP, called "Docas Station", as well as another initiative within the same REVAP, initiated by the Mayor of Belem, called "See-the-River", at the end of the port. 3.2.2- The terminals of Para Pigmentos S/A and of Rio Capim Caulim S/A signed an agreement with the Federal Union, instead of CDP, as they own the useful right over the land where the facilities are located, although they are within the area of the organized port. 3.2.3- The regimen for the exploitation of private terminals is public/private, including the handling of cargoes belonging to third parties. 3.2.4- The port of Vila do Conde, despite being a public port, operates in partnership with the companies Albras and Alunorte. These companies handle the operation of their own cargoes. For this agreement, Alunorte committed an investment of US$ 40,800 (four million and eight hundred dollars) to build port extensions in exchange for a tax exemption during twenty-five (25) years, being the sole responsible for handling 4,100,000t/year of cargo as of 1996. The total cargo handled in 1999 was 5,800,000t, which represents around 64.54% of the total cargo handled by CDP. In the year 2000, the port of Vila do Conde operated around 6,506,000t, with an increase of 12.17% percentage points, or 65.93% of the total cargo operated by CDP. 3.2.5- CDP, has never denied any application for construction, renting or exploitation of port facilities. Thus, there is no need to file appeals to CAP or to the Ministry of Transports. 3.3 - CHAPTER III - PORT OPERATORS 3.3.1- As already mentioned, the ports managed by CDP have twenty authorized port operators. 3.3.2- It is mandatory the employment of a port operator for vessels carrying small farm products and for cabotage navigation (article 8th, 1st paragraph, topics II b and c). The reason for this is that the absence of port operators would disturb the operations in the warehouses 9 and 10 of the port of Belem (used for small farm products loading/unloading). The users would not use the port stevedores (which is expensive) and would use their own crews to handle their cargoes. 3.3.3- The rules for port operations have been approved by the CAP?s (Port Authority Councils) and are now in force. 3.3.4- With the beginning of operation of OGMO (Labor Management Office), in Santarem, as of Nov. 1, 1997, all cargoes of the organized ports managed by CDP are operated by private port operators. 3.4 - CHAPTER IV - AUTONOMOUS LABOR OF THE PORT WORKERS 3.4.1- CDP has now three (3) OGMO's (Labor Management Offices): one for Belem and Vila do Conde, one for Macapa, and one for Santarem. The OGMO in Belem is active since 1994 and is chaired by Mr. Paulo Roberto Brandao and Mr. Marcelino Cavalcante da Silva Filho; the OGMO in Macapa is active since 1997 and is chaired by Mr. Luiz Gonzaga Rodrigues, and the OGMO in Santarem is active since 1997 and is chaired by Mr. Agostinho Raiol da Cunha (CDP). 3.4.2- The OGMO in Belem and Vila do Conde has an office in warehouse nr. 9 and operation facilities in warehouse nr. 4-A, occupying large rooms within the port of Belem, being fully able to perform the tasks provided by law. It has an administrative, operation and security staff, with adequate equipment (including fax and computers) and furniture to implement the process of autonomous labor work in the ports of Belem and Vila do Conde. According to the norm NR-29, the OGMO of Belem and Vila do Conde has established the SESSTP (Special Security Service for the Port Workers), with a Security Engineer, Security Technicians, Security Medical Doctor, Labor Medical Doctor and nurse. It has an ambulance to rescue injured workers. Part of CDP's medical unit room in the port of Belem is also available for the use of the SESSP. The OGMO has also established the Commission for Prevention of Labor Injuries in the Port (CPATP), which is now fully operational. It is worth mentioning that between the years of 1998 and 2000, the OGMO has provided basic courses for Cargo Conference, Cargo Coopering, Port Worker I and II, Port Security, Cargo Arrangement & Technical Stevedore, Dangerous Cargo Operation, Teaching Techniques, and Technical English, with 26 classes. Up to the present date, 1983 autonomous workers and 33 workers of CDP have been enrolled in the port services. From the total number of autonomous workers, 1060 individuals were paid-off by AITP, and the following have remained: - CAPATAZIA (Stackers) = 295 - CAPATAZIA (Cargo Handling) = 51 - ESTIVA (Stevedores Union) = 280 - CONFERENTES (Tallymen and Coopering Union) = 44 - CONSERTO (Tallymen and Coopering Union) = 6 - BLOCO (Block Union) = 44 - VIGIAS (Watchmen Union) = 20 TOTAL = 740 3.4.3- All OGMO's are fully operational. 3.5 - CHAPTER V - PORT WORKERS 3.5.1 - There are two types of port workers: the employees and the autonomous. 3.5.2- The employees are the current workers on the payroll of Companhia Docas do Para and of the port operators; the autonomous are those mentioned in item 3.4.2 in this work. 3.6 - CHAPTER VI - THE ORGANIZED PORT ADMINISTRATION SECTION I - THE PORT AUTHORITY COUNCIL 3.6.1- The CAP (Port Authority Council) of the ports of Belem, Santarem and Vila do Conde is already established according to the Article 30, 1st paragraph, items I, II, III, VIII, X, XIV, and XV. 3.6.2- The CAP of Macapa is established likewise. SECTION II - THE ORGANIZED PORT ADMINISTRATION 3.6.3- CDP is the administrator of the ports of the States of Para and Amapa and has been conducting its business according to Article 33, 5th paragraph, item I, after signing a contract, in Jan. 1, 1998, with CAMAR - Centro de Sinalizacao Nautica e Reparos Almirante Moraes Rego (Nautical Signing and Repair Center). SECTION III - CUSTOMS IN THE ORGANIZED PORTS 3.6.4- The Customs Officers in the ports of Belem, Vila do Conde, Santarem, and Macapa have been carrying their duties in the organized ports. 3.6.5- According to Article 36, 1st paragraph, the Tax Income Office has come up with specific instructions for customs in the organized ports. The ports of Belem, Santarem, Vila do Conde, and Macapa have their customs already renewed. The remaining ports do not need customs as they do not operate international cargoes. 3.7 - CHAPTER VII - INFRACTIONS AND PENALTIES 3.7.1- The infractions and penalties for transgressions to the port operation rules, approved by the CAP's, as well as the proceedings for their application, can be found in the mentioned rules. 3.8 - CHAPTER VIII - FINAL CONSIDERATIONS 3.8.1- According to Article 26 of the Law nr. 8630/93, the port operations of capatazia, stewage, cargo tally, block, and watchmen can be performed both by employees and autonomous workers. At CDP the majority of the workers in cargo operations are autonomous and only a small number of employees are used. The labor negotiations between the Unions have been initiated in 1996 and have been carried on until the present, except for the Union of Arrumadores of the State of Para, with a lawsuit still pending at the Labor Court. 3.9 - CHAPTER IX - TEMPORARY ISSUES 3.9.1- A new tariff structure was approved by the CAP's in order to replace the old one. The major setback was that the company hired to structure the tariffs has detected that, technically, the prices should be increased in order to cover the facility expenses and services available at the organized ports. Therefore, the CAP's have decided that a study should be made in order to move the current prices into the new tariff structure. This was done and submitted to the CAP's approval. The tariffs of Belem, Santarem, and Vila do Conde are in force since May 1, 1996 and the tariff of Macapa, since July 1, 1996. 3.9.2- The average indemnity paid to autonomous workers who require the cancellation of their registrations is around R$ 21,000 (twenty-one thousand reais). Such indemnity payments have only started after the survey ordered by the Decree nr. 1596/95, which provided the documentation needed for working proof of the unionized workers. The State of Para has stood out as one of the States that paid more indemnities, although there are still some pending lawsuits. 3.9.3- CDP has come up with an incentive plan for the workers who chose to quit, dully approved by SEST and the Labor Ministry. CDP has currently 300 administrative employees to manage and operate its 10 ports and 2 waterways. It is expected that this number will be reduced to 285 with the voluntary dismissing plan. IV - CONCLUSION As one can see in the present work, CDP and the other involved entities (CAP's, Tax Income Office, Port Captaincy, IBAMA, Agriculture Ministry, Federal Police, Health Ministry, Labor Ministry, OGMO, and the autonomous workers union) are now speeding to the final implementation of the Law nr. 8.630/93. Belem, January 5, 2001 The Port Modernisation Law