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The Objective Of Termination Of Contract With Portofer Is To Seek Investments Of More Than R$ 2 Billion, Through New Contracts To Expand The Internal Railway Of The Port
The Port Authority of Santos – SPA, formerly the Dock Company of the State of São Paulo (Codesp), intends to terminate the contract with Portofer early, the company responsible for coordinating the arrival of trains at the Santos terminal and seeks investments of more than 2 billion reais with the new contract to expand the internal railway of the port.
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Currently, the railway network operates within the port’s condominiums and transports 50 million tons annually. Traditionally, this was sufficient to absorb all the items from the wagons arriving at Malha Paulista (Rumo) and MRS Logística.
However, in recent months, the situation has changed, and major bottlenecks have emerged. The federal government extended the concession of Malha Paulista until 2058. Rumo’s multi-billion investment will increase its transport capacity from the current 35 million tons to 75 million tons per year.
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The MRS Logística contract is still under negotiation with the government, but the process is advanced. The early renewal will increase the transport volume of its network in the southeast from 10 million tons per year to 15 million tons. This is a forecast that has exceeded the capacity offered by Portofer today and has put pressure on the port.
Fernando Biral, the president of SPA, said that “Today, the internal railway is not a major bottleneck, but it will be in a very short time. What we are arranging is a course correction in this trajectory to avoid a mismatch between what arrives by rail and our operational capacity. We will do everything in a way that is well aligned with the investment schedule on land.”
The port authority will initiate a 45-day public consultation to gather the cost of the new contract. Portofer will be called the Internal Railway of the Port of Santos, or FIPS for short, but with the same dynamics as the current contract: integrated management of all parties involved, self-regulation of operations between the railway concessionaires, and costs. The sharing and expenses are proportional to the cargo movement.
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