Overcrowded Port of Santos terminals reignite privatization controversy among gov’t officials

With a staggering 95% occupancy rate, the BTP (Brasil Terminal Portuário), a terminal linked to shipping companies Maersk and MSC, is now refusing ships at the Santos Port in São Paulo.

Individuals involved in port operations have reported that last week, BTP was unable to receive two scheduled container ships for operation.

Both vessels attempted to divert to the other two port terminals, Santos Brasil and DPW, but they also could not accommodate the ships.

According to operators, this situation highlights that the port no longer has room for contingencies.

The OECD (Organisation for Economic Co-operation and Development) suggests that the terminal’s occupancy limit to maintain efficiency is up to 70% (yard) and up to 65% (berth).

The expansion plan, including the auction of a new terminal in Santos scheduled for 2022, was halted during the Lula administration.

Port Minister Márcio França (PSB), whose tenure is uncertain, intends to reevaluate the need to keep the port under state control and the necessary size for the expansion required to prevent the terminal from losing cargo to neighboring ports.

Alongside the Santos Port Authority, the state-owned entity overseeing the largest port in Latin America, França has stated that the port still has the capacity to handle containers.

However, data from the Santos Port Authority itself shows that since 2019, the port has been operating at its occupancy limit (70% of installed capacity). In that year, 4.2 million TEUs (Twenty-foot Equivalent Units) were handled, the operational limit.

This year, cargo projections for Santos (5.3 million TEUs) are expected to exceed the operational capacity (4 million TEUs). This amounts to 70% of installed capacity (5.7 million TEUs), a threshold beyond which operations become inefficient, according to the OECD.

The chart that follows gives further details on exports and imports in containers at the Port of Santos between January 2019 and July 2023. The data used below was gathered by Datamar using the DataLiner maritime intelligence tool.

Exports & imports at Port of Santos | Jan 2019 – July 2023 | TEU

Source: DataLiner (click here to request a demo)

Private operators argue for full privatization as a means to expedite investments.

Source: Folha de S. Paulo

To read the original news report, access: https://www1.folha.uol.com.br/colunas/painelsa/2023/09/navios-barrados-em-santos-expoem-esgotamento-do-porto-e-reacendem-privatizacao.shtml

Sharing is caring!