Libra Terminais S.A. announces end of operations in Santos

Container terminal operator, Libra Terminais S.A., has announced it will end commercial activities at the Port of Santos. However, the international conglomerate affirmed that the decision would not affect operations at Libra Terminal in Rio de Janeiro Port, Libraport Campinas and Libra Terminal Valongo (Teval). Libra’s announcement followed its customers’ decision to switch operations to another terminal from May.

The last vessel call at the terminal will take place on April 28 with Cosco Shipping Volga at Ponta da Praia. According to CMA CGM, the company has agreed to transfer its BRAZEX, SAMWAX, and SEAS 1 services to DP World Terminal, located on the left bank of the Port of Santos.

Last November, the Court of Auditors (TCU) decided to cancel the terminal’s concession contract which runs until 2035. The present term finishes in May 2020. In January Datamar reported that an arbitral tribunal convened by the Center for Arbitration and Mediation of the Brazil-Canada Chamber of Commerce (CCBC) gave a verdict against Libra Terminais S.A., ordering it to pay the Santos Port Authority (Codesp) outstanding port fees, in what is supposed to be the most substantial liability owed by a private entity in Latin America.

The dispute began two decades ago, in 1998, when the terminal operator first granted the concession but later decided they would not pay in full. The company objected of not having the whole complex as agreed in the contract. The port authority filed the first lawsuit in 1998 but had to accept a court of arbitration in 2015 after 17 years without a conclusion. In January, the arbitration tribunal was able to arrive at a decision and has ordered Libra Terminais S.A. to pay the fees in full plus interest and fines. The exact amount will come out September this year. However, there is doubt if Codesp will ever receive the amount. Codesp believes it is approximately R$2.669bn plus interest and penalties.

Container terminal specialist, Libra Terminais S.A., operates one of Brazil’s largest terminals in Santos. The terminal hosts three warehouses: T-33, T-35, and T-37. It has three berths with a 14-meter draft and is capable of storing 13,000 containers in a yard that stretches 1.3 km in length.

Libra Terminais S.A. has not given details of possible layoffs. The company currently employs over 500 people in Santos.

The following DataLiner graph shows the significance of Libra and DP World terminals in terms of export since 2009:

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