Eldorado Brasil and Bracell sign contracts for cellulose terminals at Santos

On Monday, November 16th, the Minister of Infrastructure, Tarcísio Gomes de Freitas, signed the contracts for cellulose terminals auctioned in August (STS14 and STS14A) with Eldorado Brasil Celulose and Bracell Celulose. The leases yielded R$ 505 million in grants to the Federal Government under a 25-year contract. Investments in the terminals are expected to reach R$ 420 million – including railroad access – with another R$ 110.9 million in fixed leases to Santos Port Authority (SPA), the port administrator.

STS 14 was bought for R$ 250 million by Eldorado Brasil, which will invest another R$ 186.9 million in the area. By leasing STS 14A, Bracell Celulose offered R$ 255 million and expects to invest R$ 193 million. Construction is expected to begin in early 2021.

Brazil is the largest producer of cellulose in the world, a product with the highest annual growth rate in the Port of Santos. With the improvements, the handling of this type of cargo should jump to 5 million tons per year.

“We have to celebrate the signing of these two contracts, they are the first auctions held after the start of the pandemic. At the end of the day, we are celebrating trust in Brazil,” said Tarcísio.

The Minister reinforced the importance of the Federal Government’s concession program which plans more than 50 auctions in 2021. Included are two liquid fuel bulk terminals (STS08 and STS08A), which can yield about R$ 1.2 billion. The project, awaiting approval by TCU for the publication of the concession notice, is considered the largest port lease in the last 15 years.

“The Port of Santos will undergo a revolution with new accesses and terminals that are part of the preparation to become the port of the future. We want the Port of Santos to be the largest in the southern hemisphere, ”said the minister. “A port that was causing us losses now gives Brazil a profit. It made a profit last year and will make a profit again. That comes from record movement every month, even during the pandemic.”

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