Santos Brasil prepares auction of Santos fuel terminals

Santos Brasil is preparing for the auction of two large fuel terminals at the Port of Santos, STS 08 and STS 08A, scheduled for November 19th. Competition is expected to be fierce – perhaps not in terms of the number of competitors, but in terms of interest, according to Daniel Dorea, the group’s financial director.

“We expect Petrobras to bid heavily for STS 08A, which is the biggest asset in the auction. We have been dedicating more time to STS 08. Now it is a matter of understanding the market risks because other capacities are being added in Santos by groups that have already experienced growth at the port. In addition, there are risks inherent in the execution of the investment. We are extremely dedicated to quantifying these risks and understanding if we are competitive”, he said.

STS 08A is a ​​297,000 m2 area for which investments of R$ 678.3 million are expected over the next 25 years. STS 08 is smaller in size, measuring 168,000 square meters, for which R$ 260.6 million in investments are expected. Currently, both areas are operated by Transpetro via a transition contract.

Santos Brasil, which currently focuses on containers, has launched a cargo diversification plan that focuses on liquids and solid bulk (in particular, grain). The company made its debut in the fuel sector in April this year by winning the auction of 3 port terminals in Itaqui (MA), two of which are already operational and one that will be built from scratch (greenfield project).

The original goal of beginning operations at the two existing terminals in 2024 was moved up. Today, there is a relevant perspective of taking them over in 2022, according to Dorea. “We are rushing to obtain the licenses and, if we manage to close an agreement with the current lessees for the acquisition of the installed tanks, we have a good chance of setting up the operation in the first half of 2022”, he says.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/empresas/noticia/2021/11/10/santos-brasil-estuda-leilao-de-terminais-de-combustiveis-em-santos.ghtml

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