Agribusiness backs open, unrestricted auction for STS 10

Key Brazilian agribusiness groups — the coffee exporters’ lobby group CECAFÉ, the sugar and ethanol exporters’ association AEXA, the corn ethanol producers’ group UNEM, and Logística Brasil, an industry association representing more than 30 logistics companies directly and over 10,000 corporate entities indirectly — are calling for the immediate launch of the Tecon Santos 10 container terminal auction under an open and unrestricted format. They warn that halting or delaying the process in an election year would jeopardize long-term investments and worsen the logistics crunch for containerized cargo at the Port of Santos.

At stake, the groups argue, is a clear public policy decision. The federal government must set guidelines that ensure an open, transparent and non-discriminatory auction model, avoiding any perception of favoritism and strengthening competition under free-market principles. Failure to do so, they say, would heighten the risk of legal challenges, further delaying what is set to be the largest port tender in Brazil’s history and pushing the country toward a critical scenario: without urgent expansion, the Port of Santos could reach capacity collapse as early as 2030.

Industry specialists say the bidding process for the flagship project in the federal government’s port leasing pipeline lacks solid technical justification and supporting evidence for the restrictions proposed in earlier models. The most recent framework — a two-phase auction — was rejected by all technical bodies involved, including the waterway regulator Antaq, the antitrust authority Cade, the economic oversight unit Seae at the finance ministry, and the federal audit court TCU.

The model would have barred companies already operating in Santos from participating in the first stage, based on what TCU technical staff described as hypothetical and speculative scenarios. Labeled illegal by technical teams, the structure has been criticized for restricting free competition and carrying a high risk of litigation, potentially stalling development at Latin America’s largest port and weighing on Brazil’s economy.

Ports and Airports Minister Silvio Costa Filho said the tender is once again under review and that restrictions on shipping lines are being reassessed following a meeting on Monday (2) at the presidential palace with President Luiz Inácio Lula da Silva and Chief of Staff Rui Costa. The expectation among industry groups is that the auction will be opened without restrictions, allowing all interested parties — regardless of whether they already operate in Santos — to compete, with the winning bid determined by what best serves Brazil’s interests.

Ground Reality at Santos

Berthing queues, congested yards, a shortage of berths, vessel delays and cargo rollovers have become routine at the Port of Santos, reflecting insufficient infrastructure and generating billions of reais in losses. In 2025 alone, Brazil’s coffee sector recorded R$66.1 million in logistics-related losses, with 55% of vessels delayed and an average of 1,824 containers per month left unshipped, translating into $2.64 billion in lost export revenue. Industry representatives say the port is operating beyond its limits and can no longer absorb further delays.

Sector Positions

The groups reiterated their support for a broad, technically grounded auction:

• AEXA: As the world’s largest sugar producer, Brazil exports around 80% of its output and already faces Santos as a structural bottleneck. The association fully backs the position advocated by former minister Antônio Anastasia and says the auction should have taken place long ago.
• CECAFÉ: The coffee exporters’ group says that given the severity of the situation and the losses borne by exporters, decisions must be technical, swift and grounded in real indicators, as well as in the technical opinions issued by Antaq, TCU and Cade. For the sector, an open auction is essential to expand yard and berth capacity, reduce losses, restore efficiency and prevent a repeat of the damage seen in 2025.
• UNEM: The corn ethanol producers’ association supports a fully open auction with no restrictions, ensuring full competition among global operators. For corn ethanol — one of Brazil’s fastest-growing industrial segments — logistics efficiency is critical to accessing new markets. Limiting competition, the group warns, would curb investment, modernization and integration with international trade routes.
• Logística Brasil: One of the sector’s most representative industry bodies, which on Jan. 15, 2026, formally submitted a letter to the presidency (LOGBR/Dirpre/515/2026) in defense of a single-phase auction with divestment. The position complements a joint letter signed by CECAFÉ, AEXA and Logística Brasil advocating the same approach.

Industry leaders argue that an open, unrestricted tender is the only way to unlock urgently needed capacity, restore predictability to container logistics at Santos and safeguard Brazil’s export competitiveness.

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