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The Port of Santos is preparing to receive the largest investment in the history of the Brazilian port sector. With R$4 billion at stake, the concession of the new container terminal promises to revolutionize national logistics and transform the country's foreign trade.
A colossal project is underway in port of Santos, and it promises to change the country’s logistics scenario.
The concession for the construction of a new container terminal is about to become the largest ever granted in the Brazilian port sector.
But the true magnitude of this undertaking goes far beyond the numbers.
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What the government has in store for the future of Latin America's most important port may surprise even the most optimistic.
Although the details are still being adjusted, the expectation is around billions of reais in investments, making this a unique opportunity for Brazil.
With investments expected to exceed R$4 billion, the auction for the new container terminal at the port of Santos, known as Tecon Santos 10, is set to break records.
The government reviewed studies carried out in 2022 and is already in the final stages of adjustments to send the draft notice to the TCU (Federal Court of Auditors).
The R$3,51 billion initially forecast was corrected, both for monetary updating reasons and for changes in the supply itself, increasing the total amount.
Historic expansion: Santos in the spotlight
The new terminal, also called STS10, will be transferred to the private sector for a period of 25 years, with the possibility of extension for up to 70 years.
The auction, which will take place at B3 in the first half of 2024, will have as its winning criterion the highest value offered for the concession, that is, the amount that will be directly reverted to the National Treasury.
Additionally, we bring the winner of the auction must commit to the stipulated investments, ensuring the expansion of infrastructure.
According to the national secretary of the Ministry of Ports and Airports, Alex Sandro de Ávila, the contract provides for the construction of four new berths for container ships, each with the capacity to move around 700 thousand containers per year.
In total, the expansion could mean an increase of 2,8 million containers per year, potentially reaching up to 3 million, which would represent an increase of around 50% in the port's total capacity.
Increase in port capacity
Today, the port of Santos already handles approximately 6 million containers annually, thanks to the three existing terminals: BTP, Santos Brasil and the private DPW terminal.
With the new structure, total capacity could jump to 9 million containers, further solidifying Santos' position as the largest port in Latin America.
“Santos will receive the largest investment in the history of the port sector,” stated Ávila in an interview with Folha de S. Paulo, reinforcing the impact of the project.
In addition, the government also has plans to modernize the Santos passenger terminal, geared towards maritime cruises.
This sector, which already handles around 1 million passengers per year, will be able to count on a more modern and efficient terminal.
“The port of Santos is already a powerhouse in the cruise sector, and deserves a dedicated structure,” highlighted Avila.
Side projects and more concessions in sight
Although the focus is on the Tecon Santos 10 auction, the government has other plans for the Brazilian port sector.
As revealed by Folha, the Ministry of Ports and Airports wants to auction up to 22 port terminals by the end of 2025, with an estimated investment of R$8,7 billion.
Another 13 auctions are scheduled for 2026, totaling another R$2,3 billion.
Since the beginning of 2023, 15 auctions have already been held, which shows the government's commitment to attracting private investment to modernize the country's port infrastructure.
Minister Silvio Costa Filho reinforced that, by the end of 2026, the total number of concessions could reach 58, totaling more than R$20 billion in new investments.
This strategy seeks to ensure that Brazilian ports can keep up with growing demand and international competitiveness.
The government aims to modernize and expand the country's logistical capabilities, boosting foreign trade and ensuring greater efficiency in the transportation of goods.
Challenges and expectations
With so many ambitious projects, it is natural that doubts arise about the viability and execution of these plans.
The constant review of studies and adjustments to contracts aim to minimize risks and ensure that Brazil receives the expected return on investments.
However, the complexity involved in port management and the high stakes make this a significant challenge for the government.
With a growing demand in foreign trade and the strategic importance of ports for the national economy, the success of these auctions could define Brazil's logistics future in the coming decades.
The port of Santos, in particular, will be a crucial thermometer to assess whether the country is on the right track in terms of port infrastructure.
Will Brazil be able to ensure the success of these auctions and transform the Port of Santos into a model of logistics efficiency for the world? Will the impact be enough to change the country's foreign trade scenario?
This misgovernment is going all over Brazil, and where is the money?
Brazil's debt triples every day!