Brazil’s ports ministry backs restrictions on Santos container terminal auction

The Ministry of Ports and Airports (MPor) has officially expressed support for the restriction imposed by the National Waterway Transport Agency (Antaq) in the bidding notice for the Santos 10 Container Terminal (Tecon). The measure prohibits the participation of companies that already operate container terminals in the Port of Santos, with the justification of preventing a small number of groups from further expanding their dominance in the sector. According to MPor, this is the most appropriate solution to ensure long-term competition, lower tariffs, and higher-quality services.

The opinion is set out in a statement submitted to the Federal Audit Court (TCU), filed at 10:41 p.m. this Friday (26), the last day of the deadline granted by the Court for comment. In the document, accessed by A Tribuna, the ministry argues that public interest requires a neutral operator without prior involvement in the Port, thereby reducing the risks of market concentration.
“What appears to be the most competitive scenario is the entry of a new player into the Santos port complex, especially an operator without ties to pre-established market players—either by legal conditions or by already owning assets in the Santos port complex,” the text states.

The position aligns with Antaq’s board of directors’ decision and reinforces a warning from the Administrative Council for Economic Defense (CADE), which concluded in a technical note published on Wednesday (24) that granting the concession to companies already active in Santos could pose risks to competition. MPor, however, is at odds with the TCU’s technical staff, which recommended holding the auction without restrictions.

The Ministry argues that the purpose of a public port is not to maximize immediate revenue but to provide efficient and competitive services. Although the absence of restrictions could increase competition in the auction and raise the upfront concession fee (the amount paid to the government by the winner), MPor believes this would undermine the terminal’s neutrality and reduce the diversity of options for users and shipping lines. The ministry emphasized that in concentrated markets, behavioral solutions alone—such as access rules and monitoring—are costly, difficult to enforce, and often ineffective.

Therefore, the document advocates for structural measures, with clear limits on who can compete for the asset. “A proper structural remedy is necessary to keep the country open to new routes and avoid the bargaining power of specific groups from disrupting the entire chain—something that could expose Brazil to vulnerabilities given the complexity of a reconfigured global geopolitical landscape. Conversely, ensuring the existence of a neutral port would allow the entry of independent shipping lines and the development of competing routes,” the opinion states.

The Ministry also suggests that the TCU consider adopting a two-phase auction model, as proposed by Antaq. In the first round, there would be stricter requirements and a minimum concession fee aligned with the asset’s importance. If no bidders come forward, a second round would be opened with more flexible conditions.

MPor reaffirmed its commitment to holding the auction in 2025, in compliance with the TCU’s determinations and in coordination with Antaq. The ministry stressed that, more important than maximizing concession fees, is ensuring that the largest container terminal in South America is awarded to an independent operator capable of boosting competitiveness in the national logistics chain.

Source: A Tribuna

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