Container terminal at the Port of Itajaí is experiencing an unstable moment with the termination of the contract with APM Terminals

The Port of Itajaí contract with APM Terminals will be completed in December and the complex is currently experiencing uncertain times. With the privatization process underway, the administration of the container terminal is still uncertain in place.

Although it is one of the most profitable port complexes in the state of Santa Catarina, the Port of Itajaí is now experiencing moments of instability. This is because the container terminal management contract by APM Terminals is coming to an end. In this way, the port authority is without contracts for the operation of the terminal. The privatization process still threatens the future of port operations in the area.

Completion of the contract with APM Terminals brings uncertainties regarding the management of the container terminal at the Port of Itajaí

The last months of 2022 are being moments of uncertainty for the port authority and the companies present in the Port of Itajaí. 

This is because the management contract for the port terminal, the complex's main cargo handling structure, is coming to an end. 

APM Terminals will finalize the agreement with the port authority in the month of December, and there are still no substitutes for the continuity of the management of the terminal for the following months. 

In addition, the privatization process, which is underway, but has no forecast of being finalized, puts the future of the Port of Itajaí at risk, which may be delivered to the private market next year. 

At the moment, the main concern regarding the termination of the contract with APM Terminals is the risk of discontinuing operations and stopping business at the complex's container terminal, in the midst of the privatization process.

This would be the biggest problem for the Port of Itajaí port authority, as the structure is the biggest lease for the site. 

To resolve this bottleneck, the port administration tried to reach a temporary agreement with the company, but it remains adamant about finalizing the contract. 

In addition, in August, a simplified bidding process was carried out, won by CTIL Logística, but the process was paralyzed by Antaq (National Waterway Transport Agency). 

The CTIL Logística group has experience with bulk areas, but has not previously operated a container terminal. 

That is the main concern, in addition to the fact that she may not be available for continued operations at the site with the end of her contract with APM Terminals. 

APM Terminals would be interested in a temporary contract, but bidding with Antaq has been making business with the Port Complex difficult

While the privatization process does not move forward to finalize the handover of the Port of Itajaí to the private market, the only solution is the temporary contract with open bidding in August. 

Although the contract with APM Terminals is ending and the company is not interested in a new outside deal, it said it would be interested in the temporary contract offered in August. 

She also stated that she did not participate in the August bidding process because the deadline for submitting proposals was very short, around ten days.

The process was paralyzed by Antaq due to irregularities and the need for adjustments, but executive Aristides Russi Junior, superintendent director of APM Terminals Itajaí, says that it is essential for the agency to make an urgent decision regarding the future of the container terminal. 

“When the ship leaves Asia, which is our main route, it takes 45 days to arrive. So the shipowners need to make this decision now, the cargo needs to leave there with a defined destination”, she highlighted. 

Amidst the uncertainties regarding the privatization and the future of the container terminal operation, the Port of Itajaí can only wait for Antaq's decision.