Portuguese 
ANTAQ Concludes Public Hearing on Concession for Access Channel at Santos Port, Plans to Deepen Channel from 15 to 17 Meters in Two Phases and Transfer Operation to a 25-Year Contract, Extendable Up to Seven Decades.
The session took place on September 1 and was disclosed by the agency two days later. However, the deadline for submitting contributions remains open until September 29.
According to ANTAQ, representatives from society, research centers, the productive sector, users, and other market participants attended. The session was led by Ygor Costa, the Special Secretary for Concession Bidding at the agency.
Two Meters That Mean a Generation of Ships
The core number of the project may seem modest until you understand what it means in saltwater. The access channel to Santos Port would increase from the current 15 meters to 16 meters in the first phase and then from 16 to 17 meters.
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A nearly 80-meter blade leaves Pecém, traverses four states and over a thousand kilometers to Bahia, and DNIT’s rule states that above 70 meters it requires two accredited escorts and one from the PRF in front
Channel depth determines draft, and draft determines which ships can enter. Every additional meter allows larger vessels to arrive fully loaded at the dock instead of operating with partially empty holds to avoid scraping the bottom.
In practice, it is the difference between welcoming a state-of-the-art container ship at full capacity or receiving the same ship with weight restrictions. Thus, the benefit lies not just in how many ships dock, but in how much cargo each can bring per trip.
Santos is the largest port in the country and accounts for a significant portion of Brazil’s foreign trade. Therefore, any physical restriction there impacts the entire supply chain, from grain exporters in the Midwest to industrial input importers in São Paulo.
And the costs add up quickly.
A ship leaving with an incomplete hold spreads the same fixed travel costs over less cargo, and this higher unit freight rate is passed along the chain until it reaches the final product price. This is why the discussion about channel depth, which seems like an engineering issue, ultimately turns into a matter of national competitiveness.
Why the Access Channel at Santos Port Becomes a Concession
Dredging in Brazil has always been done through construction and service contracts, with the public sector hiring the dredger, paying for the execution, and then contracting maintenance again. The problem with this model is the discontinuity.
The channel becomes silted. Every year, sediment enters, and the project depth is only maintained if there is constant maintenance dredging. When the contract ends, or when the budget tightens, the depth diminishes, and the port once again imposes draft restrictions without warning.
The concession inverts this logic. Instead of contracting the work, the state turns the entire channel over to a private operator, who takes on the deepening, maintenance, and the responsibility to deliver that depth throughout the contract period.
This is why the contract duration is long. It spans 25 years, with the possibility of extension that could bring the concession to 70 years. The initial investment in dredging for deepening is significant and front-loaded, meaning it only makes financial sense if the return horizon is extended.
On the flip side, a lengthy contract demands robust regulation. Seventy years exceeds the lifespan of nearly any traffic forecast established today, and periodic contract reviews become essential to prevent users from being locked into outdated fees.
Outstanding Questions
The public hearing does not mark the end of the process; rather, it serves as a phase where the regulator gathers input from the market before finalizing the plan. During the open period until September 29, any interested party can submit formal contributions.
The predominant concerns typically revolve around who bears the costs and how. The fees charged to vessels using the channel must adequately fund the investment while ensuring the port remains competitive against other terminals along the coast.
Environmental licensing also factors into the discussion. Dredging involves altering the seabed material and requires a designated disposal area, which is often a major cause of delays in port construction projects in Brazil.
The execution risk is another concern, particularly in access channels where the inherent difficulties are pronounced. Construction occurs in the same operational area as the port, without interruptions, with ships continually entering and leaving.
This situation restricts the working window and necessitates daily coordination with pilotage and the port authority, raising costs for every cubic meter removed. Anyone who has witnessed dredging in an active port knows that the official schedule and the reality on-site rarely align.
Another point that the consultation should address is the performance guarantee. A contract promising 17 meters must clarify what happens if that depth is not achieved: what penalties apply, who measures, how often, and who arbitrates any disputes.
For port users, this clause ultimately holds more weight than the depth itself. Contracted depth without independent verification is just a promise, and Brazil’s track record of silted channels reveals how much such promises are worth when budgets tighten.
Viewed in this light, the project carries the merit of treating the channel as a permanent asset rather than an episodic project that appears in budgets sporadically. This shift in perspective may prove more significant than the two additional meters themselves.
In the meantime, the agenda moves forward. Following the contribution deadline, the next steps will include consolidating the material, adjusting technical and legal documents, and only then will the auction date be set. For those relying on Santos, the timeline to watch begins on the 29th of this month.
Do you think handing over the Port of Santos under a contract of up to 70 years solves the siltation issue or creates another problem?
