Megaterminal in Santos: Cade warns of competition risks in auction; details

The Administrative Council for Economic Defense (Cade) sent a technical note to the Federal Court of Accounts (TCU) this Wednesday (24), acknowledging the existence of “competition-related risks” in the auction of the Santos 10 Container Terminal (Tecon) at the Port of Santos. According to Cade’s opinion, these risks could arise if the megaterminal were granted to companies that already operate container terminals at the port (horizontal overlap) or to shipping lines that own vessels (vertical integration).

Even so, Cade emphasized that these concerns are hypothetical and that only a concrete review in a duly filed merger control case would allow definitive conclusions. “The identification of a potential risk is a preliminary and indicative step; therefore, it does not amount to a conclusion that this risk will materialize into anticompetitive conduct,” the document explains.

The Council’s statement was requested by the TCU during the evaluation process of the tender prepared by the National Waterway Transport Agency (Antaq). In the draft, Antaq restricted the participation of companies already active in the segment in Santos, citing risks of market concentration. These companies could only participate in a possible second round if there were no interested parties in the first round.

The Port of Santos is the largest in Latin America. See below a historical record of long-haul container throughput at the Port of Santos starting from January 2022. The chart was prepared with DataLiner data and excludes internal movements, transshipment, and cabotage. Check it out:

Long-Haul Container Throughput at the Port of Santos | Jan 2022 to Jul 2025 | TEU

Source: DataLiner (Click here to request a demo)

Long process
Cade’s opinion marks another step in a debate that has been ongoing since May, when the TCU began examining the tender. In August, the Court’s technical staff supported an open auction with no restrictions, suggesting as an alternative that any winners be required to divest assets already operated in the port.

The Ministry of Ports and Airports (MPor) is also expected to issue its opinion by this Friday (26). Only after receiving these contributions will the TCU make its final decision on the auction model.

Meanwhile, Minister Silvio Costa Filho maintains that the auction will take place between December 15 and 18 at the São Paulo Stock Exchange (B3).

Located at the Saboó dock (STS10), Santos 10 is slated to receive more than R$6 billion in investments and will become the largest container terminal in South America, with a capacity of 3.25 million TEUs (twenty-foot equivalent units) per year.

Source: A Tribuna

Sharing is caring!