Maersk Could End Tecon’s Monopoly at Suape Port and Generate More Jobs, But Future of the Economy Is Uncertain

The Justice of Ipojuca (PE) Scheduled the Auction of the Internal Pier of the Port of Suape for June 21

To meet the judicial recovery plan devised by the creditors of the Atlântico Sul Shipyard, located at the Port of Suape, the Justice of Ipojuca (PE) has scheduled the auction of the internal pier for June 21. The bidding is open for companies that wish to compete, but they will have to contend with the giants Tecon and Maersk. The former, from the Philippines, already operates a public terminal in the organized port, tied to the control of Union rules. The latter, a Danish company and one of the largest shipping lines in the world, has already submitted a proposal of R$ 895 million. There is also an expectation for job creation.

Everything indicates that the Atlântico Sul Shipyard at the Port of Suape will accept the proposal offered by Maersk through APM Terminals, as it is under judicial recovery, selling assets to pay creditors. Thus, new investments and job opportunities should arise, although it is not known exactly how many at this time.

Another positive aspect, seen by naval industry experts, is that a new holder of the space could promote improvements to the structures and systems for loading and unloading container operations at the Port of Suape. The venture suffers from the highest rates in the sector globally, precisely due to the prices charged by Tecon Suape, the current operator of the container terminal of the Pernambuco port.

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According to the National Agency of Waterway Transportation (Antaq), the Filipinos charge the highest cargo handling fees at port terminals (Terminal Handling Charge) in Brazil. According to Antaq, a 20-foot container from the shipping company CMA CGM at the Port of Suape costs US$ 308 in THC, while at Santos (SP) it costs US$ 185 and in Pecém (CE), the price is US$ 195.

President of the Port of Suape Says Tecon’s Participation in the Auction “Will Be Bad for Pernambuco”

The possibility of Tecon participating in the auction was already considered a certainty among entrepreneurs operating in Pernambuco. However, there are lamentations. The president of the Port of Suape, Roberto Gusmão, confirmed the participation of the Filipinos in the bidding to compete with Maersk’s proposal.

In an interview with an important local news blog about politics and the economy, Gusmão said that Tecon’s participation in the port’s bidding – which is already the most expensive in Brazil – will be negative for the state due to the monopoly that already exists.

“Tecon Suape is qualifying and it will be bad if they participate. It will be exchanging six for half a dozen,” said the president of the Port of Suape. The situation is that if the Filipinos win, they will abandon the public terminal to have a private terminal. Therefore, they would likely abandon the public terminal. “We will be forced to conduct a new bidding process,” explained Gusmão.

The Atlântico Sul Shipyard at the Port of Suape is managed by the contractors Queiroz Galvão and Camargo Correa. The companies aim to pay off debts with the National Bank for Economic and Social Development, through the sale of assets. The BNDES is the largest creditor of the old naval industry project.

In 2021, the group of creditors tried to sell the areas of the venture as a block, but there were no interested parties. The new strategy is to sell in parts. The sides received an offer from Maersk, but the central area will remain available to the contractors for ship repair activities.

The minimum bid for acquiring the Fully Constituted UPI B is R$ 895,000,000.00 (eight hundred and ninety-five million); UPI-B South Pier is R$ 300,000,000.00 (three hundred million).

Numbers of the Atlântico Sul Shipyard

Currently, the Atlântico Sul Shipyard has about 500 employees. Between 2007 and 2014, it generated over 11,000 jobs. At that time, Pernambuco was identified as a state in a situation of almost full employment. In 2021, the company serviced 11 vessels, generating revenues of R$ 65.4 million, leading to a net cash generation of R$ 26.6 million.