Revisions to Santos terminal project could restart bidding process and delay auction

The possibility of changes to the design of the new container terminal at the Port of Santos has raised concerns across the sector because of the risk of further delays to the auction. Sources involved in the discussions say that, depending on the scope of the revisions, the bidding process may need to be restarted.

The main point of concern is the need for a new review by Brazil’s federal audit court, the TCU. Deeper changes to the model could require a revised version to be sent back to the court, extending the timeline and potentially pushing a decision until after the presidential election.

Originally scheduled for December 2025, the auction has already been postponed several times and is now rescheduled for the second half of 2026. The timetable has been affected by disagreements over how much to restrict the participation of companies already operating at the port and of major shipping lines in a market viewed as highly concentrated.

As first reported by CNN, the presidential office is considering at least four adjustments to the auction design to encourage competition. One of the points under review is allowing shipping lines that do not currently operate at the Port of Santos to participate in the first phase of the auction, a measure that would not face resistance because it is aligned with the position of Brazil’s waterway transport regulator, Antaq.

In December, the TCU approved the model proposed by Antaq, which calls for a two-phase auction. Under that structure, container terminal operators already present at the port are barred from participating in the first stage. If no bids are submitted, those groups may enter the second phase, provided they divest their current operations.

In addition, the TCU recommended restricting the participation of shipping lines such as MSC and Maersk in the first phase of the auction, expanding the limitations originally proposed by Antaq.

Other points under discussion, however, are considered more sensitive and could materially alter the project. They include the definition of what constitutes an economic group, the concept of relevant cargo handling, and the divestment deadline, which could allow companies to cease being classified as port operators.

If those changes move forward, the government may have to submit a new version of the project for technical review by Antaq and the TCU, effectively creating a third bidding model.

The revisions are the result of pressure from private-sector players seeking to broaden participation in the auction, while the government tries to avoid concentration risks at the port and possible diplomatic friction.

Considered the largest port lease project in the history of Brazil’s port sector, Tecon Santos 10 calls for investment of more than 6 billion reais and is expected to increase the port’s container handling capacity by about 50%, at a time when Santos is already operating near its limit for this type of cargo.

Source: CNN

Sharing is caring!