Brazil's large-scale terminal auction may exclude existing operators

      According to local media reports, the Brazilian Water Transport Authority (Antaq) has approved the Tecon Santos 10 terminal leasing bidding model, which includes restrictions on existing terminal operators within the port complex. 

      To solve the logistics dilemma in ports, Brazil has initiated a revision of the Port Law and launched a large-scale port leasing bidding program. Among them, Tecon Santos 10 has attracted attention, which is a container terminal at Santos Port with an annual throughput of up to 3.5 million TEUs and an investment of approximately 1.1 billion US dollars. The draft tender announcement has been approved for public consultation and hearing, and submitted to the Federal Court of Audit (TCU) for review. It is reported that the bidding requirements include restrictions on existing terminal operators within the port complex. 

      According to reports from reputable media, based on the suggestion of Caio Farias, the director of the Brazilian Water Transport Agency, restrictions have been proposed on existing terminal operators to prevent the container loading and unloading business at Santos Port from becoming more centralized. In fact, most existing terminals are controlled by shipping companies around the world.  

      The bidding for the Santos Port container terminal has attracted much attention, and this process has been discussed for over a decade. Market forecasts indicate that by 2028, the container throughput of the port complex will reach full capacity.

      If confirmed, the Tecon Santos 10 terminal leasing auction will be the first-ever public port leasing tender in Brazil. Brazilian Minister of Ports and Airports Silvio Costa Filho is the main advocate for the project and has been in contact with international investors.

      According to local media reports, due to restrictions imposed by the Brazilian Water Transport Authority on existing port operators, this may also bring some challenges. The affected groups may file lawsuits or consider other pressure strategies.

      In short, this decision by the Brazilian Water Transport Authority may open the door for other port operators to enter Brazil. According to reports, investment funds are also very interested in bidding.