Santos port mega-terminal auction pushed to mid-December

The Federal Audit Court (TCU) is expected to review the auction model for the new container superterminal at the Port of Santos (SP) in October, according to Minister of Ports and Airports Silvio Costa Filho. He made the statement during the event “Brazil on the Tracks: Sustainability in Motion” on Wednesday (1).

If the schedule is met, the government plans to hold the auction between December 15 and 25. Last week, Silvio Costa Filho had indicated that the bidding was scheduled to take place between December 15 and 18.

Last Friday (26) marked the deadline set by the TCU for the Ministry of Ports and Airports and CADE (the Administrative Council for Economic Defense) to submit their opinions on the concession model.

A technical note from CADE’s General Superintendence sent to the TCU identified competition risks if the auction is won by companies already operating in the port or by shipping lines.

“We once again expressed our concern about market concentration. The TCU itself has already spoken on several occasions about this issue, which is our greatest concern. The ministry will follow the TCU’s ruling,” Costa Filho told journalists.

The TCU’s preliminary report on the Santos auction concluded that the restrictions imposed by Antaq (the National Waterway Transport Agency) violate constitutional principles of equality and proportionality, as it relies on hypothetical risks without sufficient technical evidence to prevent competitors from participating in the process.

Antaq defined a two-phase auction model. In the first round, current container operators in Santos are barred from participating. The proposal was endorsed by the Ministry of Ports and Airports.

Under Antaq’s suggestion, if no bids are submitted in the first phase, companies already operating in Santos would be allowed to participate in a second phase. If they win, the companies would be required to sell their assets before signing the Tecon Santos 10 contract.

Following the timeline, Costa Filho said he expects a “roadshow” to be held in November with Brazilian and international companies interested in joining the auction. The minister advocates for greater diversity of operators at the Port of Santos.

“We need to attract more international players so we can increasingly democratize the Port of Santos. I doubt it is healthy to have such strong concentration in the hands of just a few when we have the opportunity to open participation to all who want to operate at the Port of Santos,” Silvio said.

São Sebastião
The minister also indicated that the government will hold the tender for the new container terminal at the Port of São Sebastião (SP) in the first quarter of next year. The project is expected to expand São Paulo’s operational capacity.

Source: CNN

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