Santos Brasil postpones deadline for investments in the Port of Santos to 2031

Santos Brasil, which manages the Container Terminal at the Port of Santos (Tecon Santos), has postponed the completion of its investment schedule for the Santos pier from December 31, 2020, to December 31, 2031, The information was released to the market on January 3 through disclosure of material facts signed by the company’s Economic-Financial and Investor Relations Director, Daniel Pedreira Dorea. According to the company, the estimate is to invest at least R$ 360 million by next year. R$ 313 million has already been invested

The amount of investments is related to the request for the early renewal of the terminal lease agreement. Initially, the company would have had until next year to operate Tecon. However, in 2015, after a negotiation with the federal government, Santos Brasil guaranteed the renewal until 2047. For this, the operator committed to invest more than R$ 1.2 billion in infrastructure. These investments should guarantee an increase in the container-handling capacity at Tecon.

From 2 million TEU handled annually, the volume will be 2.4 million TEU annually. In addition, the forecast is that the installation will reach the 150 movements per hour (mph) mark. One of the main interventions planned is the expansion of the current 980-meter wharf to 1,200 meters by extending the berth to the Vehicle Export Terminal (TEV).

The expansion will make it possible to simultaneously dock three new Panamax vessels, capable of loading between 7,000 and 12,500 TEU. In addition, the company foresaw the deepening of mooring berths and the purchase of equipment such as portainers.

According to the relevant fact disclosed by the company, “The new investment schedule preserves the original economic-financial equation of the lease, keeping the amount to be invested and the lease term provided for in the fifth addendum, keeping the original assumptions already agreed, among them the movement, price, and productivity ”.

Lack of Demand
In a note, the president of Santos Brasil, Antônio Carlos Sepúlveda, informed that “the lack of demand in view of the capacity generated over time by the original project was what motivated the request for an extension of the term for the investment of R$ 1.5 billion (in updated values) at TeconSantos”. According to the executive, legislation allows for the revision of the investment schedule. “The investment amount remains unchanged as well as the lease term,” he said. According to Sepúlveda, the term for part of the investments in equipment was changed. Investments in the quay infrastructure are being concluded.

Source: The Tribune

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