EPL presents lease studies for a Port of Santos terminal at a public hearing

The National Waterway Transportation Agency (Antaq) held, on the 19th, a public hearing to discuss the lease studies conducted by Brazil’s state-owned Planning and Logistics Company (EPL) for the STS 10 terminal in the Port of Santos (SP). The terminal, which will handle containerized cargo, will likely generate R$3.28 billion in revenue, with R$2.5 billion in the first five years of the contract, with a total term of 25 years.

With an area of 601,101 m², the terminal will be leased for 25 years and have an operating capacity of 2.3 million TEUs/year. The studies conducted by EPL also include the terminal’s demand potential and the engineering solutions needed for the venture, in addition to economic-financial modeling,

To analyze the potential for attracting cargo to the STS10 terminal, the EPL team conducted a technical visit to the Port of Santos to assess the port complex’s installed handling capacity for containerized cargo. In addition, the studies analyzed information from the Santos PDZ and Santos Master Plan.

EPL’s Management Director, Marcelo Caldas, stated that the project will reduce operational costs, on top of facilitating the modernization of the port infrastructure and the reduction of the port’s carbon footprint, in addition to expanding the capacity of Latin America’s largest port complex.

“The opportunity for EPL to apply its expertise in yet another port leasing study demonstrates the confidence that the Federal Government and the marketplace in the state-owned company’s model,” said Caldas.

Innovation – EPL developed a methodology for assessing the competitive environment to ensure that those interested in the terminal auction face stiff competition. The “Analysis of the Competitive Impact of New Grants of Port Terminals (AIC-TP)” aims to assess whether the terminal to be leased or granted gives rise to competition concerns in light of the Competition Law (Law No. 12,529/2011).

The analysis’s premise is to look for competition in two places: during the auction and afterward and a healthy competitive environment after the grant. This is the first study of port terminal leasing to employ AIC-TP.

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