Ports and Terminals

Container Ships Turned Away at Brazil’s BTP Amid Capacity Strain

Oct, 08, 2024 Posted by Gabriel Malheiros

Week 202439

Brasil Terminal Portuário (BTP) at the Port of Santos was forced to turn away two container ships last week due to its congested facilities. BTP, a joint venture between APM Terminals and Terminal Investment Ltd (TIL), is currently operating at 95% capacity.

The situation has become critical, as vessels attempting to divert to Santos Brasil and DP World terminals also found no available space. Industry operators warn that the port has reached its contingency limit, underscoring a lack of capacity to manage demand spikes.

The Organization for Economic Co-operation and Development (OECD) recommends keeping terminal occupancy at 70% in container yards and 65% at berths to ensure operational efficiency. However, the Port of Santos has been operating at its 70% capacity threshold since 2019, the year it handled 4.2 million TEUs (twenty-foot equivalent units), pushing it to the operational brink.

The chart below reveals the performance of container exports and imports at the Port of Santos between January 2022 and August 2024, measured in Twenty-Foot-Equivalent Units (TEUs). The information comes from DataLiner, a Datamar-developed product.

Santos Container Exports & Imports | Jan 2022 – Aug 2024 | TEUs

Source: DataLiner (click here to request a demo)

Expansion plans that could have alleviated the congestion were halted during Lula’s administration, including a new terminal auction initially scheduled for 2022. Then-minister Márcio França stated that the need for expansion would be reassessed to avoid losing competitiveness.

Private entities advocate full privatization as the best route to ensure faster investments and resolve capacity issues.

Source: O Petróleo

Click here to read the original text: https://opetroleo.com.br/congestionamento-no-porto-de-santos-provoca-recusa-de-navios-e-acende-alerta-para-expansao/

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