Brazil and Saudi Arabia Move Toward Port Sector Investment Deal

The Brazilian Minister of Ports and Airports, Silvio Costa Filho, presented the country’s largest portfolio of port and waterway concession investments to Sultan Khayat, Head of External Relations at Red Sea Gateway Terminal (RSGT), and Jens Floe, CEO of the Jens Floe Group—two major players in Saudi Arabia’s maritime sector. The meeting, held via videoconference on Tuesday morning (11), provided an opportunity for the minister to showcase Brazil’s upcoming port infrastructure projects to one of the world’s leading container terminal operators, highlighting assets set to go up for auction by 2026.

During the discussion, Costa Filho emphasized Brazil’s strong performance in the port sector, citing key economic indicators. “We are pleased to strengthen this partnership between Saudi Arabia and Brazil. Our country is experiencing its best economic phase in years. Over the past two years, our economy has grown by more than 3%. In 2024, the port sector saw an expansion of over 5%, while container throughput surged by 18%,” he stated. The minister also noted significant growth in agribusiness and industry. “Under this administration, we have witnessed the highest industrial growth in Brazil in the last 15 years. Additionally, Brazil has moved from the world’s 11th largest economy to the 9th, with substantial gains in GDP,” he added.

RSGT expressed strong interest in acquiring federal port assets, particularly in Itaguaí (RJ), Bahia, and the Tecon Santos 10 project—a mega container terminal at the Port of Santos designed to significantly boost Brazil’s port capacity. The Saudi company is a major global port operator and manages the newest container terminal at Jeddah Islamic Port in Saudi Arabia, a facility that received an investment of approximately $1.7 billion.

According to Brazil’s National Secretary for Ports, Alex Ávila, the country will offer investment opportunities in over 40 port auctions over the next two years, covering key concessions in solid bulk, liquid bulk, and agricultural commodities, among others. “We are also looking to expand partnerships in the mining sector. The ITG02 terminal auction, which is dedicated to solid bulk handling, is expected to process around 20 million tonnes per year and was the largest auction in the history of our port system. We are leading these concession and auction processes to expand infrastructure and enhance port capacity nationwide,” Ávila said.

Strengthening Brazil’s Port Infrastructure

Brazil has been ramping up investments in port modernization, leveraging concessions and public-private partnerships to increase efficiency and competitiveness. The entry of global operators such as RSGT is expected to further drive the country’s logistics development, attracting foreign investment and expanding port capacity.

Minister Costa Filho reaffirmed that the port sector remains a top priority for Brazil’s economic growth. “In the two years of President Lula’s administration, we have already invested R$20.8 billion, and by the end of the term in 2026, private sector investments will surpass R$50 billion,” he stated.

The meeting reinforced the growing interest in collaboration between Brazil and Saudi Arabia in the port sector, laying the groundwork for future negotiations and strategic partnerships. “Brazil has been identified as a key market for our company, with immediate investment opportunities. Other firms have already entered the Brazilian market, and we are inclined to follow the same path. We will soon meet with the technical team at the National Secretariat for Ports to align our investment plans,” said RSGT’s CEO, Jens Floe.

Sharing is caring!