JBS Considers Bid for Santos Port Megaterminal Amid Shipping Lines’ Concerns

A decade in the making, the auction for the new Tecon 10 container terminal at the Port of Santos — the largest in Latin America — is set to take place by the end of 2025. While originally expected to attract bids from major shipping lines already operating in the port, JBS and its logistics arm, JBS Terminais, are reportedly preparing a financial plan to join the race, sparking discontent among traditional maritime operators.

A recent competition report by Brazil’s National Waterway Transportation Agency (Antaq) signals a preference for a “new entrant,” i.e., a company not yet active in Santos. This stance has also been echoed by a Federal Court of Accounts (TCU) minister — the court responsible for approving the final tender terms.

Shipping giants fear the process may be skewed in favor of what they consider an “outsider.” However, JBS disputes this view, pointing to its inherited container operations from the 2013 acquisition of Seara, as well as its current concession at the Port of Itajaí, where it has invested R$130 million, with plans to inject another R$90 million in 2025.

The federal government, meanwhile, has invested heavily in dredging and modernizing the Port of Itajaí. A new state-owned port company was recently announced, along with an R$844 million investment plan to boost capacity and security. The port handles 50% of Brazil’s poultry exports.

For Santos, projected investments under the 25-year concession could reach R$40 billion, making this the largest and most strategic auction in Latin American port history, with no comparable projects expected in the near future. The 622,000-square-meter Tecon 10 site will be located in the Saboó district, designed as a multipurpose terminal for both containers and breakbulk cargo.

According to several sources, Joesley and Wesley Batista — owners of J&F, the holding that controls JBS — have privately confirmed interest in the project. A recent technical report by Antaq caused alarm among “vertical” operators (shipping lines that also run terminals) by recommending a two-stage bidding process. Under this model, integrated operators like Maersk, MSC, and CMA CGM would be barred from the first round. Maersk and MSC, partners in BTP (Brasil Terminal Portuário), were seen as front-runners before the new rule.

Legal experts are divided: some argue the restriction could lower the concession’s value by excluding major players, while others believe it promotes competition and avoids market concentration. “Antaq’s message is clear: it doesn’t want shipping lines controlling the new terminal,” said maritime law expert Larry Carvalho.

Below is a historical overview of cargo throughput from Santos Port. The chart was prepared using DataLiner data:

Cargo Throughput from Santos Port | Jan 2022 – Apr 2025 | TEUs

Source: DataLiner (click here to request a demo)

The São Paulo state government has formally objected to Antaq’s recommendation. In response, Antaq director Lima Filho defended the agency’s prerogative, emphasizing its regulatory authority.

The participation of JBS Terminals may be enabled by a low technical entry threshold — having handled at least 130,000 TEUs annually. This allows companies with moderate port experience to qualify. At full capacity, Tecon 10 is expected to handle 3.5 million TEUs per year.

Market attention intensified in July 2024 when JBS Terminais hired Aristides Russi Junior, former CEO of APM Terminals (Maersk’s port unit), as its new CEO. Russi had previously led negotiations on Maersk’s exit from Itajaí — a concession that JBS subsequently took over.

From a strategic standpoint, winning Tecon 10 would align with JBS’s vertically integrated model, allowing the company to capture logistics margins internally and enhance control over its export flows.

Other potential competitors include ICTSI, the Filipino terminal operator active in Suape and Rio de Janeiro. However, ICTSI has traditionally focused on warehousing, and investment funds are largely excluded from the process unless they join qualified consortia.

With the Port of Santos projected to reach saturation by 2028, any legal delays could prove costly. The Public Prosecutor’s Office requested an injunction to halt the auction until the TCU rules on the proposed restrictions. Minister Antonio Anastasia denied the request, but the case remains open.

“This is a blow to productivity and an attack on open competition,” said Congressman Julio Lopes (Progressistas-RJ), head of the Congressional Front for a Competitive Brazil. “Antaq is overstepping its mandate. The auction should be as open as possible.”

Port and Airports Minister Silvio Costa Filho emphasized that Antaq’s leadership was appointed by the previous Bolsonaro administration, adding that the current government respects the agency’s autonomy.

When asked recently about the federal government’s stance on the rules and JBS’s potential participation, Deputy Minister Mariana Pescatori declined to comment.

Source: Folha de S. Paulo

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