Finance and Ports Ministers, APS President Meet with CMA CGM CEO Following Santos Brasil Acquisition

Economic development, job creation, and supporting Brazil’s port infrastructure are top priorities for the Ministry of Ports and Airports (MPor). In this context, foreign investments play a crucial role. In a significant step for the country, Minister Silvio Costa Filho, Finance Minister Fernando Haddad, and other federal government officials met on Wednesday (25) with Rodolphe Saadé, CEO of the global logistics leader CMA CGM Group. Over the past weekend, the company recently finalized the acquisition of Santos Brasil Terminal, located at the Port of Santos.

The meeting also included CMA CGM’s Executive Vice President Christine Cabau, the Ministry of Finance’s Secretary of Economic Policy Guilherme Mello, and the National Secretary of Ports Alex Sandro Ávila.

CMA CGM acquired 48% of Santos Brasil’s shares from Opportunity for R$13.2 billion, paying R$15.30 per share, a 20.4% premium over Friday’s closing price. Santos Brasil was valued at R$11 billion, with shares previously trading at R$12.71. Notably, Tecon Santos, the terminal, handles 17% of container throughput along Brazil’s coastline.

During the meeting, the leaders discussed CMA CGM’s investment plans for Brazil. “CMA CGM’s entry into the Port of Santos highlights growing global interest in Brazil’s port infrastructure. We are very pleased with the outcome of the meeting and look forward to seeing them invest even more in the country. These investments extend to other ports, waterways, railway, and highway auctions, allowing the group to channel their resources,” stated Silvio Costa Filho.

The minister further emphasized that Brazil offers many investment opportunities, with a record-breaking trade balance of over 100 billion dollars. “We aim to modernize ports through public-private partnerships, advancing the port agenda with a focus on sustainability. We are committed to promoting low-environmental-impact ships, integrating cutting-edge technology to meet global standards,” he added.

Rodolphe Saadé highlighted that this major investment reflects CMA CGM’s commitment to strengthening its partnership with Brazil and supporting its development in the years to come. “As a family-owned company, we have a long-term vision for shipping and logistics. Our goal is ambitious: even though we aren’t yet fully utilizing the terminal, we are confident we will be in a few years. We are already exploring ways to expand our operations in both deep-sea and cabotage shipping.”

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The Port of Santos, the largest in Latin America, is a critical hub for exporting various products and plays a prominent role in the container segment. The Santos Brasil Terminal is the port’s largest container handler, with around 40% of the market share for cargo movements.

Please refer to the chart below to discover the top ten terminals in Brazil in terms of container throughput, as well as Tecon Santos’ standing on this list. The information was derived from DataLiner, Datamar’s top-notch maritime intelligence service, and refers exclusively to long-haul operations, with transshipment, cabotage, docking clearance, or transits not included.

Top Container Terminals | Jan-Jul 2024 | TEUs

Source: DataLiner (click here to request a demo)

CMA CGM already has a strong presence in Brazil, operating in several ports, including Rio de Janeiro, Santos, Paranaguá, and Suape. The company stated that the investment in the terminal is strategic, strengthening its relationship with Brazil and reflecting its commitment to the country’s growth. Additionally, CMA CGM plans to accelerate investments in Santos Brasil’s assets to meet growing demand. The French company manages 50 port facilities worldwide and reported revenues of $47 billion last year.

Source: Informativo dos Portos

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