Maersk and MSC are back in the competition for Port of Santos area

Brazil’s Administrative Council for Economic Defense (Cade) issued a note stating that the verticalization of shipowners in port terminals does not harm competition. The verdict refers to a dispute involving companies such as Brasil Terminal Portuário (BTP), Maersk and MSC, which are fighting to participate in the auction of a container terminal in the Port of Santos in the Saboó region. Despite it, Cade points out a possible market concentration risk if the companies emerge victorious from the auction.

See below what were the most exported cargoes via Port of Santos in 2022 so far. The data is from DataLiner.

Most exported cargoes via the Port of Santos | 2022 | WTMT

Source: DataLiner (click here to request a demo)

“Vertical integration can have pro-competitive effects such as lowering transaction costs through the combination of complementary activities, which can then be reversed to improve and innovate products and processes, increasing the company’s economic efficiency, and providing price and quality gains to consumers,” says Cade.

After having their participation in the auction of a 600,000 square meter container terminal in the Port of Santos questioned, Maesrk and MSC are now clear to participate in the bidding. Cade rejected a preventive measure that changed the criteria to participate in the auction. ABTRA, the Brazilian association of bonded terminals, has submitted the request to veto companies that contributed to the “verticalization of operations,” which does not harm competition in Cade’s view.

Source: Veja

To read the full original article, please go to: https://veja.abril.com.br/coluna/radar-economico/maersk-e-msc-estao-de-volta-a-disputa-por-area-no-porto-de-santos/

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