Companies call for fair tariffs and APS oversight in Port of Santos channel concession

Tariff fairness and continued access management by the Santos Port Authority, or APS, were the two main points raised by private users during discussions on the proposed Port of Santos channel concession.

The bidding model was presented by a representative of Brazil’s national development bank BNDES during a public hearing held by waterway regulator Antaq on Tuesday, September 1, in Brasília. The public consultation will remain open for contributions until September 29.

The project provides for the partial concession of the port’s access channel for 25 years, with possible extensions up to a maximum of 70 years. The contract is estimated at R$688.1 million.

The auction will be held in two stages. The first criterion will be the largest discount on the tariff ceiling, capped at 5.8%. In the event of a tie, or if the difference between proposals is less than 20%, bidders will move to an oral-bid round. If the tie persists, a second stage will be held based on the highest concession fee.

Specialized dredging companies may participate individually or as part of a consortium, provided they meet technical qualification requirements, including proven experience, equipment availability and qualified professional staff.

Division of responsibilities

The model establishes a division of responsibilities between public agencies and the future private concessionaire.

The federal government, through the ports and airports ministry MPor, will be responsible for contract management. Antaq will handle regulation and oversight. APS will retain strategic functions, including control and supervision of vessel entries and departures through the waterway channel.

The concessionaire will be responsible for deepening dredging to 17 meters, maintenance dredging, nautical signaling, hydrographic surveys, traffic operations, studies on deepening the channel to 18 meters and environmental management.

The concession will cover the full length of the organized port’s channel, the turning basins and the maintenance of depths at public berths.

Of the R$688 million planned, about R$300 million will go toward deepening the channel from 15 meters to 16 meters. Another R$315 million will be allocated to the second stage, from 16 meters to 17 meters. Around R$58 million will be used to implement VTMIS, the Vessel Traffic Management and Information System, and about R$4 million will be earmarked for environmental actions.

Retention account

One of the project’s financial rules is a so-called retention account.

During the first three years, while the channel operates at a depth of 15 meters, the concessionaire will receive 70% of revenue.

After making the investment required to increase the depth to 16 meters, that share will rise to 90%. Once the channel reaches 17 meters, the company will receive 100% of revenue.

According to the model, the mechanism is intended to encourage the concessionaire to carry out mandatory investments as quickly as possible.

The project estimates gross revenue of about R$23 billion over the 25-year contract. Operating costs are expected to exceed R$6 billion, while estimated operating cash flow is around R$2.8 billion.

The concessionaire will also have to make a fixed contribution of R$200 million per year to APS, totaling R$5 billion over the period, in addition to a variable contribution estimated at 23% of gross revenue, equivalent to R$5.4 billion.

Dredging Committee

Governance of the project will include different segments of the port sector.

A consultative Dredging Committee is expected to bring together representatives of the federal government, the concessionaire, APS, the Maritime Authority, the state, the municipality, terminals, workers, port operators and pilots, among others. The structure may also include subcommittees and transparency mechanisms.

Despite the transfer of operational activities under the concession, APS will remain responsible for strategic decisions set out in the port’s Development and Zoning Plan, known as PDZ. The concessionaire may provide technical input, but will not have autonomy to change the strategic planning of the port area.

Industry comments

Cristina Rodrigues, adviser to the Infrastructure Directorate at APS, said during the hearing that the Santos port administration is concerned about fragmented governance and investment.

“The model we defend keeps all governance, tariff fairness and public management with the Port Authority. In addition, we want speed in investments and in the operation of services,” she said.

Angelino Caputo, president of Brazil’s association of bonded terminals and facilities, Abtra, focused on governance. He argued that “it will be up to the Port Authority to define the sequencing and line-up,” referring to vessel entries and departures, in order to avoid conflicts of authority with the future concessionaire.

Caio Morel, CEO of Brazil’s container terminal association Abratec, said the investment plan must be reviewed.

“There is no point in deepening the channel to 17 meters if essential works are not carried out to receive a 366-meter vessel at the berths and mooring bollards,” he said.

Fábio Lavor, executive director of the Transatlantic Navigation Center, or Centronave, asked for shipowners, who pay tariffs, to be included in the Dredging Committee.

“It is important to have the shipowners’ perspective in the process, bringing more transparency and efficiency,” he said.

The debate over the Port of Santos channel concession is central to the future of Brazil’s largest port complex, where deeper draft, clearer governance and predictable tariffs will shape the port’s ability to receive larger vessels and maintain competitiveness in long-haul trade.

Source: A Tribuna 

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