Santos Brasil container handling grows 20.3% in 2Q19

Cargo handling at Santos Brasil in three of its terminals – Santos (SP), Imbituba (SC), and Vila do Conde (PA) – grew by 20.3% in the second quarter of 2019 compared to the second quarter of 2018, totaling 320,079 containers. Long-haul operations accounted for 75.1% of total operations and cabotage operations 24.9%.

Tecon Santos handled 282,496 containers during the same period, an increase of 23.4% compared to the previous year. The growth presented was more than five times the growth of the Port of Santos in the same period, which was 4,1%.

With the volume moved in the first half of 2019, Tecon Santos presented, on an annualized basis, 80% utilization of their installed capacity and they reached 41.3% of market share, maintaining its leadership in the Port of Santos.

In the shipping routes that go through the port of Santos, the Asian services showed the highest growth, reflecting the heated trade between Brazil and China. Tecon Santos operates two of the four Asian services that currently go through the Port of Santos, representing a market share of approximately 45% on this commercial route.

In Tecon Vila do Conde, the volume of containers handled grew 21% in the second quarter of 2019, reaching 27,270 units. Long-haul operations accounted for 67.1% of total volume and grew 14.1% in the period. Exports grew 23.3%, led by shipments of manganese and copper. Imports grew 3.8%, reversing the fall from the previous quarter. Another important growth driver was project cargo operations in May and June, with the importation of equipment and machinery for two large mining companies and one hydroelectric plant located in the region.

Tecon Imbituba handled 10,313 containers in the second quarter of 2019, 30.0% lower than in 2Q18. The drop was caused by the reduction in long-haul container handling as a result of the discontinuation of the Asian ASAS service in January 2019, which ceased to exist due to the reorganization of the services of the shipowners Maersk, Hamburg Süd, MSC, and Hapag Lloyd in the South American East Coast. However, Imbituba’s General Cargo Terminal (TGG) operations are offsetting this impact. In the second quarter of 2019, TCG operated 94.6 thousand tons, more than double the volume handled in the second quarter of 2018, especially in importation of steel products, bark, and export of wood logs to the Chinese market.

Santos Brasil Logística’s volume of stored containers grew 9% in the same period, driven by the renewal and also the signing of new contracts throughout the quarter, mainly with customers in the chemical sector, fertilizer importers, and pesticides.

TEV handled 53,435 vehicles in the second quarter of 2019, down 33.9% over 2Q18, mainly due to lower vehicle exports from Brazilian automakers to the Argentine market. On the other hand, the mix improved with a 10.4% increase in imports, which represented 17.7% of total vehicles handled in the quarter. In the first half of 2019, the utilization of the capacity of TEV, on an annualized basis, was 68.2%.

In the second quarter, the Company presented a net profit of R$6.3m, compared to a net loss of R$4m in the second quarter of 2018. Consolidated net revenue grew 14.9% to R$264.9m in the period, as a result of the increase in container handling and general cargo volumes, as well as the partial rebuilding of prices.

The Company’s cash balance in the period was R$460.3m, with a net debt of R$19.8m. Investments totaled R$46m, of which R$41.3m were allocated to the Tecon Santos expansion project, which will add 220 meters to the current pier, which will be 1,510 meters long (considering the 310 meters of the TEV).

The following chart, made with data from DataLiner, shows Santos Brasil’s movement in the first half of 2010 to 2019:

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