Brazil delays Santos STS10 port terminal auction again amid regulatory debate

Brazil’s ports ministry has postponed once again the auction of the STS10 terminal at the Port of Santos as discussions continue over the tender’s design, following a recommendation by the federal audit court that limits the participation of shipowners in the initial bidding phase, according to reporting by Folha de S. Paulo.

International shipowners, particularly Asian carriers, were excluded from the first round of the auction under guidance issued by the Federal Court of Accounts (TCU). Industry executives told the newspaper that potential bidders have been holding talks to assess strategies as the government reviews possible adjustments to the tender documents.

The debate centers on whether the auction should follow the model proposed by Brazil’s waterway transport regulator ANTAQ, which suggested a two-phase process. Under that approach, only shipowners that already operate terminals at the Port of Santos would be barred from the first phase, affecting three of the world’s largest carriers: Maersk, MSC and CMA CGM. These companies would be eligible to bid only in a second phase, although market participants say the auction would likely be concluded in the first round.

In a December 2025 ruling, the TCU instead backed a broader restriction. The deciding vote, cast by audit court minister Bruno Dantas, argued that vertical integration and the risk of excessive market concentration justified barring all shipowners, regardless of origin or business scope, from the first phase of the auction, even if partnered with other companies.

The decision surprised parts of the private sector and prompted renewed discussions within the government. Ports and Airports Minister Silvio Costa Filho had previously said the ministry would fully follow the TCU’s guidance, while other government officials, particularly within the Chief of Staff’s office, favored a single-phase auction without restrictions.

According to people familiar with the matter, the TCU’s position was issued as a recommendation rather than a binding requirement, and it did not deem ANTAQ’s proposal illegal. The court has indicated only that it would not support a single-phase model, as its analysis was based on a two-round structure.

Documents submitted to the case’s rapporteur, audit court minister Antonio Anastasia, showed that Brazil’s finance ministry and the TCU’s technical staff favored a single-phase auction. Prosecutors attached to the audit court also questioned the legality of the restrictions. Anastasia voted for an open auction, but his position was overruled.

On Thursday (the 15th), Costa Filho announced a new delay, saying the tender could now take place by the end of April. The auction had previously been expected in March, after earlier government statements pointed to a launch by the end of 2025.

“Our expectation is to hold the auction by April 30. It will be the largest in Brazil’s history,” the minister said.

The revised timeline is intended to allow further alignment on the tender terms and to provide time for a government-led roadshow aimed at presenting the project to the market and encouraging broad participation. Costa Filho has said that ten or more companies have expressed interest, which would be unusual in a sector where many port auctions have attracted only a single bidder.

Further delays cannot be ruled out. Last year, Maersk sought a court injunction arguing that no public hearing had been held to discuss a restricted auction model, as well as raising competition concerns. In an interview with Folha, Patricio Junior, investment director for terminals at Terminal Investment Limited (TiL), an MSC subsidiary, said the company could also pursue legal action. Other international shipowners may consider similar steps.

About STS10

The STS10 project involves a 621,000-square-meter terminal dedicated to container and general cargo handling. It is expected to further expand capacity at the Port of Santos, Latin America’s largest port complex and Brazil’s main foreign trade gateway, accounting for 29% of the country’s total trade flows.

The chart below provides an overview of containerized exports and imports at the Port of Santos, featuring Datamar data.

Port of Santos | Exports x Imports | Jan 2022 – Nov 2025 | TEUs

Source: DataLiner (click here to request a demo)

The terminal will have four berths, with total investment over the 25-year concession estimated at up to 40 billion reais.

Source: Folha de S. Paulo

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