Ports and Terminals

Port Authority drafts preliminary outline to deepen access channel at Santos Port

Oct, 17, 2023 Posted by Gabriel Malheiros

Week 202340

According to the Ministry of Ports and Airports, the dredging project to deepen the access channel to 16 meters is essential for increasing the competitiveness of the Port of Santos. The Port Authority of Santos (APS) is exploring a new contract model with a longer timeline to improve the port access’s operational efficiency and ensure the contracted company’s economic well-being.

The APS revealed in a statement that the current navigation channel depth at the Port of Santos is 15 meters, and they are working on a plan to dredge it to 16 meters, with the potential to reach 17 meters. Environmental, commercial, and technical aspects are being considered for feasibility.

Ivam Jardim, a technologist in logistics and transportation and a partner and consultant at Agência Porto Consultoria, noted that “the publication of the tender notice is scheduled for December 2025, and construction is set to commence in June 2026.”

Jardim explained that expanding the navigation channel depth to up to 17 meters in a second phase to meet the expectations of companies in the Port of Santos’ production chain is more complex.

“The documentation, environmental, and technical requirements are quite different and distinct. Thus, achieving this depth involves exploring different modalities, including covering just the dredging or both the dredging service and subsequent depth maintenance.”

See below a comparison between exports and imports at the Port of Santos between Jan 2019 and Aug 2023. The data is from DataLiner.

Exports & Imports at Santos Port | Jan 2019 – Aug 2023 | TEUs

Source: DataLiner (click here to request a demo)

Paraná Example

Concerning the privatization of the Port of Santos’s access channel to the private sector, Jardim expressed his approval of the model used for the Port of Paranaguá, which provides for the concession of management, dredging, maintenance, and operation. The process is currently in public consultation, and this will be the country’s first concession tender for an aquatic channel.

“As an innovation in the current administrative contract, I have many compliments for the concession model. I believe that the work carried out by the Ministry of Ports and Aquatic Transport in conjunction with the local Port Authority has involved much dialogue in recent months, aiming to address various critical issues that have historically hindered long-term contracts for this type of service.”

However, Jardim pointed out the risks. “This model will set targets for the concession holder but, in return, will share the risk of uncontrollable costs, such as exchange rate fluctuations, marine fuel prices, and dredging equipment costs.”

Maintenance Dredging

Van Oord is currently contracted to upkeep the dredging of the Santos port complex’s access channel; this is different from the deepening process. The current contract, which has a total value of R$392.9 million, has a two-year term and is scheduled to expire in March of the following year, according to APS. However, if more time is needed, an extension is available.

“The plan includes extending the contract for up to five years and opening a new bidding process for depth maintenance, as this is an ongoing service that must not experience interruptions.”

Regarding the proposition of privatizing the Port of Santos’ access channel through a model akin to that of the Port of Paranaguá in terms of granting the administration, dredging, upkeep, and operation to private contract holders, Ivam Jardim declared his support for the Paraná model. This is the nation’s first public tender for a canal concession, and the process is currently in the public consultation phase.

Source: A Tribuna

To read the original publication, visit: https://www.atribuna.com.br/noticias/portomar/autoridade-portuaria-prepara-anteprojeto-para-aprofundar-canal-de-acesso-do-porto-de-santos

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