An injunction granted by a local judge in the city of Cubatao, in the state of Sao Paulo, reversed a city’s decision that resulted in the shutdown of a Usiminas port terminal.
Judge Luciana Castello Chafick Miguel granted Usiminas permission to continue its activities at its port terminal in the city of Cubatao, despite the announcement last week by the city’s mayor that the facility would be shutdown due to the lack of proper permits.
The judge ruled that the mayor’s decision didn’t follow “good sense”, as an abrupt closure of a terminal port would increase unemployment in the city and would result in a decline in the city’s revenue, as Usiminas pays local taxes.
Cubatao’s city said it wasn’t immediately notified of the injunction requested by Usiminas that granted the steelmaker permission to continue its activities at the port terminal.
Usiminas used to operate its port terminal through a provisional permit, which was granted due to the company’s acceptance of a conduct adjustment commitment term (TAC), in which the steelmaker was expected to meet a series of obligations, including qualifying its workers and preserving job positions. As Usiminas failed to comply with these requirements, the port license, which requires the occupancy permit, was suspended.