Port of Santos Tariff Cuts Encourage Cruises, ‘Green Ships,’ and Cabotage

With approval from the Ministry of Ports and Airports, the Port of Santos will promote tariff cuts for so-called “green ships” that emit less pollutants. The discounts also encompass cabotage ships and passenger vessels, encouraging tourism and generating employment and income in coastal cities.

The Minister of Ports and Airports, Silvio Costa Filho, met with Anderson Pomini, President of the Port Authority of Santos (APS), in Brasília, and approved the proposed discounts in the new tariffs, also authorized by the Port Authority’s Board of Directors (Consad).

The criteria for promoting discounts for green ships are based on a score from the Environmental Ship Index (ESI), which rates vessels from zero to 100 based on their use of technologies for systems or fuels that reduce the emission of nitrogen oxide (NOX) and sulfur oxide (SOX) beyond the required regulatory limits.

Therefore, the tariff cuts approved by the Port of Santos will be 15% when the score ranges from 71 to 100 points, 10% for scores from 51 to 70 points, 5% for scores from 31 to 50 points, and those scoring between zero and 30 points will not receive a reduction.

To encourage coastal navigation between Brazilian ports, the tariffs are calculated based on the number of visits to national ports, with the percentage of the discount increasing as ships use the country’s port services more frequently.

The discounts for cabotage ships will be granted based on their calling track record in the 12 months before the month of berthing, applied to item 2 of Table 1 of the Waterway Access Infrastructure, considering the differentiation between deep-sea vessels and cabotage vessels.

According to the newly approved tariffs, ships with over 48 calls will receive a 65% discount; 24 to 47 calls will receive a 55% discount; 12 to 23 calls will receive a 45% discount; 8 to 11 calls will receive a 35% discount; 5 to 7 calls will receive a 30% discount; 3 to 4 calls will receive a 25% discount, and 1 to 2 calls will not be entitled to any value.

For cruise ships, the discount table rewards cruise ships with a higher number of passengers, with a reduction of up to 60% for passenger numbers exceeding 650,000; 50% for passenger numbers between 450,000 and 649,000; 40% for passenger numbers between 300,000 and 449,000; 30% for passenger numbers between 150,000 and 299,000; 20% for passenger numbers between 80,000 and 149,000, and 10% for passenger numbers between 10,000 and 79,000.

According to Minister Silvio Costa Filho, this measure encourages tourism because it stimulates job creation in the country: “Every four tourists who arrive create one job in Brazil. Cruise ships will contribute to boosting the national economy. Similarly, the incentives for cabotage and environmental preservation will result in significant gains for Brazilians,” said Costa Filho.

APS President Anderson Pomini emphasized that studies were conducted at the minister’s request to allow for these discounts. “This ministry’s policy complies with the Federal Government’s directive to generate more jobs, income, and, consequently, social justice through Brazilian ports. The Port of Santos is thus fulfilling its part in this important task,” concluded Pomini.

The discounts will be in effect for 12 months, starting ten days after the publication of the tariff tables. In the case of green ships and cabotage, the measure must be linked to an agreement with, at least, the Brazilian Association of Coastal Shipowners (ABAC) and its application restricted to the new tariff structure.

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