Brazil ports ministry seeks extension on Santos 10 terminal case, risking delay to record auction

The Ministry of Ports and Airports (MPor) has requested an additional 15 days from the Federal Audit Court (TCU), beyond the original deadline of this Thursday, to issue its opinion on the technical area’s report regarding the auction of the Santos 10 Container Terminal (Tecon), located at the Saboó wharf (STS10).

The extension, now running until September 26, was granted by Minister Antonio Anastasia, the case’s rapporteur at the TCU. However, the move could delay the auction of Brazil’s largest terminal and even jeopardize its completion this year as planned.

When asked to explain the reasons for the extension request, the ministry gave no justification.

The ministry must send the Court its position on the final opinion of the TCU’s Specialized Audit Unit for Port and Rail Infrastructure (AudPortoFerrovia), which recommended that the auction be open to all participants. This conclusion runs counter to restrictions imposed by the National Waterway Transport Agency (Antaq), which barred companies already operating container terminals in Santos from taking part in the process.

Anastasia also ruled that the Administrative Council for Economic Defense (Cade) must submit its view on the technical report within the same timeframe. No date has been set for the TCU to complete its analysis and present the report, and access to documents has been restricted, as the case is classified as confidential.

The federal government intends to hold the auction for the future megaterminal in the second half of December. However, the extensions granted are likely to further slow the bidding process, making it less likely that the timetable will be met in 2025.

Background
The process has dragged on because the restrictive rules proposed in the draft notice have sparked opposition from part of the international maritime cargo sector, as well as from the Santos Port Authority (APS) and the state government.

Antaq approved a two-phase auction model that would bar major industry players—such as Switzerland’s MSC, Denmark’s Maersk, France’s CMA CGM, and DP World of the UAE—from participating in the first round. They would only be allowed to take part in a second phase if there were no bidders in the first—an unlikely scenario. Antaq has argued that this model is needed to prevent excessive market concentration.

The restriction has placed heavy pressure on the regulator and the MPor itself.

Process
Once the TCU completes its review, the documentation will return to Antaq for adjustments before the final notice is published. After the auction is launched, companies will have at least 30 days to submit proposals.

The asset
Tecon Santos 10 will occupy 621,900 square meters, with capacity for 3.25 million TEUs per year, in addition to 91,000 tonnes of general cargo.

With planned investments of R$6.45 billion, the contract will run for 25 years, with operations expected to begin in 2026.

The megaterminal will also enable the transfer of the Giusfredo Santini Passenger Terminal, currently operated by Concais in Outeirinhos, to the Valongo area. To make this possible, the future concessionaire will be required to build the platform for the new cruise terminal.

Opinion
The technical report by the TCU unit was published under seal on August 25, but A Tribuna gained access. The document, prepared by AudPortoFerrovia, which oversees and evaluates this type of project, recommends that the auction proceed without restrictions. It also suggests that if a company already operating in Santos wins the bid, it must divest its current asset before taking control of Tecon Santos 10.

Source: A Tribuna

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