By Christian Fernandes Rosa and Beatriz Wehby

Decree No. 10,045/2019 was published in the Official Gazette of the Union on October 7 of this year, qualifying the Company of Entrepostos and General Warehouses of São Paulo (CEAGESP) within the scope of the National Privatization Program, which aims to transfer to the private sector activities previously explored by the public sector, in order to contribute to the economic restructuring in the public sector. 

The privatization of CEAGESP was recommended in September by the Investment Partnerships Program Council (PPI), which promotes studies on public-private partnerships in the Union. According to the PPI, the justification is that the federal public company has not had good economic and financial performance in its operations and has been offsetting its current losses with financial revenues from the sale of assets. 

Under the terms of the Decree, the National Bank for Economic and Social Development (BNDES) will be responsible for executing and monitoring the acts necessary for privatization. 

The privatization regime has not yet been defined, but some areas for possible relocation of the company are being considered. Currently, CEAGESP has a total area of approximately 640,000 m², which should be available for real estate developments.  

The Public Law & Compliance team at Mazzucco & Mello Advogados will monitor the progress of the project and will be available to provide any clarifications.