Port of Santos navigation channel poised for privatization in 2025

The Port of Santos navigation channel is poised for auction in 2025, marking a significant development in maritime infrastructure. The preliminary discussions on the legal framework and investment details were held at the Santos Port Authority (APS) headquarters on the 22nd. The proposed public-private partnership (PPP) model, along with a 25-year management and exploration contract, is under scrutiny, including plans for dredging and maintenance to deepen the channel to 17 meters. APS had previously earmarked R$6.5 billion for this project in March.

“The directive from Minister Silvio Costa Filho is to expedite the notice preparation for market availability by 2025,” remarked Alex Sandro de Ávila, the national secretary of Ports and Waterway Transport, during a meeting in Santos.

Ávila outlined the dredging plan, detailing its phased approach. “Dredging up to 16 meters will be conducted by APS by year-end, with maintenance until 2026. The concessionaire will be responsible for deepening from 16 to 17 meters, with the contract expected to be signed in 2026,” he explained.

The meeting was attended by APS President Anderson Pomini, National Waterway Transport Agency (Antaq) General Director Eduardo Nery, and a representative from the National Bank for Economic and Social Development (BNDES).

“This marks the kickoff of the concession study for the Port of Santos channel in collaboration with BNDES,” Ávila stated. He highlighted the reference model developed for the Port of Paranaguá channel, emphasizing BNDES’s role in providing legal modeling, investment assessments, and cost projections.

Pomini underscored the need for meticulous planning. “Efficiency and technological enhancements are paramount to ensuring the Port of Santos remains competitive, capable of accommodating ships measuring 366 meters daily, regardless of tidal conditions,” he emphasized.

Nery elaborated on Antaq’s role in the bidding process, emphasizing regulatory oversight. “Antaq regulates the tariff for waterway access and monitors contract compliance, ensuring performance indicators are met. Tariff adjustments are made to uphold service standards,” he explained.

Depth Demands

Discussions surrounding the expansion of the Port of Santos access channel to accommodate the burgeoning demand for container ships took center stage at the 24th International Coffee Seminar in Santos, where industry stakeholders engaged in a spirited dialogue.

Elber Justo, CEO of MSC in Brazil and President of the Board of Directors of the National Center for Transatlantic Navigation (Centronave), underscored Brazil’s lag in maritime infrastructure. “The vessels introduced globally 12 years ago are incompatible with Brazil’s operational constraints, highlighting our deficiencies,” he lamented. Justo emphasized that even preceding vessel generations with capacities ranging from 10,000 to 14,000 TEU do not maximize their potential in Santos, leading to operational strains and cargo limitations.

Addressing coffee shippers, Ronald Moraes, Administrative Export Manager of the Regional Coffee Growers Cooperative in Guaxupé (Cooxupé), traced the decade-long trajectory of coffee exports via the Port of Santos. “Exports maintained a steady trajectory until 2022, hovering between 79% and 80%. However, in 2023, it plummeted to 71%, marking a 10% decline, while witnessing growth in other ports like those in Rio de Janeiro and Itaguaí,” he remarked, prompting reflection on the Port of Santos’s competitive standing amidst this dynamic landscape.

Mauro Sammarco, President of the Santos Commercial Association (ACS), flagged the imperative of leasing a container terminal equivalent to STS10. Sammarco emphasized the urgency of the Ministry of Ports and Airports (MPor) defining the concession’s location, whether in the Saboó neighborhood or on Ilha de Bagres. “We sought to consolidate the area in Saboó to develop an efficient project capable of meeting our demands,” he stressed.

Alex Sandro de Ávila, National Secretary of Ports and Waterway Transport, shed light on the ongoing evaluation of STS10’s location by the ministry, with no fixed auction date yet. “The container terminal in Santos is likely to enter the auction block in 2025 or 2026, contingent upon completion of our studies,” he revealed.

The Port of Santos is currently Latin America’s largest and accounted for approximately 29.1% of all Brazil’s commercial transactions in April 2024, according to the Santos Port Authority. The chart below shows maritime imports and exports of containers handled at the port. The information was derived from DataLiner.

Container Exp & Imp | Port of Santos | Jan 2021 – Mar 2024 | TEUs

Source: DataLiner (click here to request a demo)

Reflecting on the discourse, Ávila underscored its significance in charting the port sector’s trajectory to accommodate escalating future demands, particularly in agribusiness.

Anderson Pomini, President of the Santos Port Authority (APS), lauded the forum for fostering collaboration within the port community to optimize logistics efficiency. Pomini underscored the identification of bottlenecks, stressing the need for inclusive engagement across the logistics spectrum to enhance agility and reduce operational costs.

Affirming the Port of Santos’s competitiveness on a global scale, Pomini advocated for further enhancements, noting its untapped potential.

Eduardo Nery, General Director of the National Waterborne Transport Agency (Antaq), underscored Antaq’s role in setting standards to enhance competitiveness and service quality across port authorities, operators, and shipping companies.

Source: A Tribuna

Click here to access the original text: https://www.atribuna.com.br/noticias/portomar/canal-de-navegacao-do-porto-de-santos-sera-privatizado-leilao-e-previsto-para-2025

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