Port of Santos discounts still pending one month after announcement

The discounts of up to 65% announced more than a month ago for Brazil’s Port of Santos have not yet been implemented. The topic is currently under review by the Santos Port Authority (APS), but there is no set date for them to take effect.

According to the proposal announced by Minister of Ports and Airports, Márcio França, on June 17, the higher the number of calls by a long-haul or cabotage ship, the greater the discount on tariffs, up to a limit of 65%. There will also be incentives for so-called “green” vessels to promote sustainability, with discounts of up to 12%.

On the same date, França announced tariff discounts of up to 95.5% for the Port of Rio de Janeiro, which went into effect ten days later. The decree issued by the director-general of Portos Rio, Álvaro Luiz Savio, was published on June 27.

Infrastructure

In June, the minister said that the measure’s goal is to leverage investments in infrastructure, and part of the revenue from tariffs should be used for this purpose. In December 2021, the National Agency for Waterway Transportation (Antaq) issued Resolution 322, establishing the investments to be financed by port tariffs.

“In this decision, Antaq authorized investments of R$936 million in the expansion and modernization of the organized port infrastructure, with implementation beginning within 36 months and completion within 84 months, counted from the homologation,” explained APS. However, the values ​​have not yet been applied.

The Port Authority said it plans to speed up infrastructure works in Santos. “Despite delays in the previous administration, the current board is taking the necessary steps to deliver the works and services of dredging, maintenance, and perimeter expansion as soon as possible to make up for lost time.”

Murillo Barbosa, director-general of the Association of Private Port Terminals (ATP), stressed the need for infrastructure investment at the Port of Santos. “The complex currently has a draft limitation for larger container ships. There has been a long-term program to increase the draft of the port, which needs to be implemented. This will either be funded by tariff 1, collected by the ports, or by the federal government.”

When asked where he expects the funds to be invested, Barbosa said, “The resources collected from the waterway access tariff must be used to improve waterway access to the port. This includes more efficient buoying using technology, as well as deepening and widening the channel to allow larger ships to enter the port.”