Businesses push for Port of Santos urgent expansion

The constant growth of operations, combined with inadequate planning over the last decade and delays in releasing new areas, threatens to exhaust the container storage and handling capacity at the Port of Santos. Business leaders warn that the port is nearing its capacity limit, with significant space constraints at the terminals. This concern is echoed by the National Center for Transatlantic Navigation (Centronave), which represents shipowners.

In the first quarter of this year, the berth occupancy rate in Santos was 71%, exceeding the Organization for Economic Cooperation and Development (OECD)’s recommended level of 65%. “Today, a ship needs to wait an average of 20 hours to dock at the port due to the high terminal occupancy,” says Centronave’s executive director, Claudio Loureiro.

Eduardo Heron, director of the Brazilian Coffee Exporters Council (Cecafé), underscores the infrastructure and capacity issues. “The limited capacity in port terminal yards restricts container reception, leading to high and unforeseen costs for exports,” he states.

In April, 95 coffee-exporting ships, or 80% of the total, faced delays or changes at the Port of Santos. “More concerning is that 42 ships did not even receive a gate opening at the terminal,” Heron adds.

Terminal Investments

The terminals are continually investing to optimize their operations. Bruno Stupello, director of Port Terminal Operations at Santos Brasil, mentions that Tecon Santos, the company’s primary asset, is expanding. “This year, R$250 million to R$300 million will be invested to increase the terminal’s capacity from 2.4 million TEU to 2.6 million TEU by year-end, with expectations to reach 3 million TEU before 2027.”

Brasil Terminal Portuário (BTP) currently handles 1.5 million TEU per year but managed 1.8 million last year.

“BTP will invest R$1.9 billion to increase operational capacity by 40%,” the company states, noting that recent studies indicate a critical capacity point that could become unsustainable by 2026.

DP World Santos has also increased its capacity from 1.2 to 1.4 million TEU per year and is investing further to expand capacity to 1.8 million TEU within the next five years.

Ecoporto contributes to the port’s capacity with an additional 300,000 TEU, included in the Port’s container capacity estimates.

The Port of Santos is South America’s largest. The chart below illustrates container exports and exports between January 2021 and April 2024.

Santos Port Container Exports & Imports | Jan 2021 – Apr 2024 | TEUs

Source: DataLiner (click here to request a demo)

Capacity Outlook

According to the Santos Port Authority (APS), the Port handled a record 5 million TEU in 2022 and 4.8 million TEU in 2023. The current capacity is estimated at 5.9 million TEU. “This indicates that the Port has not yet reached its capacity limit,” assures APS, which expects to handle 6.1 million TEU by the end of this year.

The Development and Zoning Plan (PDZ) of the Port of Santos, reflecting estimates from 2020, projected a container movement capacity of about 5.3 million TEU per year. Since then, terminals have been expanding their capacities. APS predicts that, even without new terminals or densification, the capacity will reach 7.5 million TEU by 2030, aligning with projected demand until at least 2035.

State Admits Importance of Increasing Port Capacity

Despite asserting that the Port of Santos has not yet reached its capacity limit, the Santos Port Authority (APS) acknowledges the necessity of expanding capacity beyond current demand.

“APS maintains constant dialogues with all terminals in Santos, aiming to effectively serve 100% of the cargo within the port’s region of influence,” APS stated in a note.

The port authority is working on updating the Development and Zoning Plan (PDZ) of the Port of Santos, a planning tool that must be continually monitored and revised to align terminal capacity with market dynamics, ensuring efficient cargo flow to and from the port.

APS highlights the allocation of areas in Saboó, Santos, including greenfield sites to the BTP terminal, and Prainha, Guarujá, to Santos Brasil.

“If densification of these areas is achieved at the Santos Brasil and BTP terminals, we will surpass the scenario initially projected in the PDZ, reaching 9 million TEU of capacity by 2040,” APS projects. “Furthermore, there are other proposed projects within the port complex that could enable new capacities in the long term.”

Addressing Bottlenecks

To resolve existing bottlenecks in container storage and movement, Centronave’s executive director, Claudio Loureiro, suggests resuming auctions, promoting investments in terminals capable of accommodating larger, more efficient ships, and expanding cargo storage while maintaining high ship productivity.

Operational Challenges

The Regional Coffee Growers Cooperative in Guaxupé (Cooxupé), which operates shipments solely from Santos, is experiencing significant logistical challenges. The cooperative receives and sells coffee from over 18,000 members in 300 municipalities across Minas Gerais and São Paulo.

Ronald Pires de Moraes, administrative manager of Cooxupé Exports, explains that while reservations are made on ships, arrival delays in Santos lead to changes in docking dates. “With these delays, terminals claim they are full, preventing us from delivering cargo where the ship docks,” Moraes explains.

As the coordinator of the Chamber of Coffee Exporters of the Santos Commercial Association (ACS), Moraes notes that this situation incurs extra costs due to the lack of storage space for containers, adding further complications.

“As a result, loads are redirected to back areas. Carriers manage this scenario, overloading vehicles within the Santos complex and causing additional pollution. Ideally, truck drivers would deliver directly to the port terminal, completing the operation efficiently.”

Due to the capacity shortage, containers are frequently moved to back areas, necessitating additional truck transfers to the port. “These extra costs, not accounted for initially, impact exporters significantly,” adds Moraes.

Seeking Alternatives

In response to the capacity constraints in Santos, the executive director of the Brazilian Association of Cotton Producers (Abrapa), Marcio Portocarrero, reveals that studies are being conducted on logistical alternatives for Mato Grosso, Mato Grosso do Sul, and Goiás. The aim is to transport future harvests through ports like Salvador (BA), Itaqui (MA), and Itaguaí (RJ), with potential container stuffing at the dry port of Anápolis (GO) and rail forwarding to Itaguaí and Paranaguá (PR). “We are exploring other options for producers and traders needing to ship their cotton bales to Asia,” Portocarrero explains.

Source: A Tribuna

Click here to read the original text: https://www.atribuna.com.br/noticias/portomar/empresarios-veem-risco-de-esgotamento-no-porto-de-santos-e-pedem-ampliac-o-de-areas-1.422847

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