Santos Mega Container Terminal Project Gains Momentum

After multiple delays, the federal government is expected to launch a public consultation by February 20 for a new mega container terminal at the Port of Santos. Previously known as STS 10, the project has been rebranded as Tecon Santos 10 and is slated to receive BRL 4.5 billion in investments.

The market expects strong interest in the asset, but disputes over the project could also arise, potentially causing further delays.

The terminal will be built from the ground up and is projected to handle 3.5 million TEUs annually across four berths, according to Ports and Airports Minister Silvio Costa Filho. “It will nearly double the container handling capacity at the Port of Santos,” he stated.

The chart below compares containerized exports and imports at Brazil’s Port of Santos. The data was derived from Datamar’s DataLiner.

Port of Santos Exports and Imports | Jan 2021 – Dez 2024 | TEUs

Source: DataLiner (click here to request a demo)

The concession will be awarded to the highest bidder, with a minimum bid set at BRL 1.2 billion. The government plans to use the proceeds to build a new passenger terminal in Santos.

According to the ministry’s timeline, once the public consultation is completed, the project will be submitted to the Federal Court of Accounts (TCU) by the end of April. The bidding notice is expected to be published in September, with the auction scheduled for December. The concession contract is anticipated to be signed by mid-2026.

The two largest shipping companies operating in Brazil—Maersk and MSC—are seen as likely contenders, provided no restrictions bar their participation. Both companies are partners in Brasil Terminal Portuário (BTP), a container terminal at the port. Sources say CMA CGM, which recently acquired control of Santos Brasil (operator of another major terminal in Santos), is also expected to join the race, along with other global carriers such as China’s Cosco.

International port operators are also in the mix, including PSA (backed by Singapore’s Temasek and previously in talks with Wilson Sons) and ICTSI (a Philippine group with existing terminals in Brazil). Another potential bidder is J&F, owned by the Batista family, which recently took over the Itajaí container terminal in Santa Catarina, according to sources close to the project.

Despite the government’s timeline, industry insiders warn that regulatory disputes could slow progress—something that has happened before. Under the previous administration, the project was mired in controversy over bidding rules, with independent terminal operators objecting to Maersk and MSC’s participation. The original auction framework barred the two from bidding jointly through BTP but allowed them to compete separately, triggering legal challenges that stalled the process.

Critics argued that Brazil’s two dominant shipping lines would prioritize their own terminals over others, potentially squeezing out independent operators—particularly Santos Brasil—if they secured an additional facility.

A key question for the new auction is how competition rules will be structured. When asked about this, Minister Costa Filho said the matter would be addressed during the public consultation and ultimately decided by the TCU. “The decision on whether shipping companies can participate is up to the TCU. Since we will hold public hearings, we want to develop a well-founded position,” he said.

Industry sources believe shipping lines will be allowed to participate. Some argue that CMA CGM’s acquisition of Santos Brasil—previously a vocal opponent of carriers bidding—could reduce resistance. Others, however, expect the debate to persist.

Another issue that could spark debate is the risk of increased road congestion in Santos. The new terminal is expected to generate a significant uptick in truck traffic. The Santos Port Authority has announced infrastructure upgrades to improve access before operations begin, but sources say concerns remain.

From a logistics standpoint, shipping companies and industry analysts see other risks ahead. One concern is how quickly the terminal will ramp up to full capacity. Some worry that a slow ramp-up could delay the much-needed expansion of container capacity at Santos, which is already nearing its limit.

Another uncertainty is the extent of the winning bidder’s responsibility for the passenger terminal, which will be funded with auction proceeds. Initially, there was pressure to share space between the cargo and passenger terminals, but the government ultimately allowed the container terminal to take over the entire site in exchange for financing the passenger terminal.

When asked about this, Minister Costa Filho said the obligation has yet to be defined. “We are still discussing whether it will be part of the project or whether the passenger terminal will be handled as a separate concession.”

Risk of Delays and Industry Reactions
Some analysts warn that these discussions could push the project into the next administration—a scenario that worries industry players in Santos, given the port’s existing congestion and projected growth in cargo volumes.

Commenting on the project, MSC Shipping Brazil CEO Elber Justo stated: “With the announcement of the Tecon 10 auction, the government is finally addressing a major port infrastructure bottleneck that has been systematically disrupting vessel schedules. Capacity constraints in Santos impact the entire shipping rotation, affecting cargo flow, trade, and the country’s economic growth.”

Maersk, CMA CGM, and J&F declined to comment. Attempts to reach PSA, ICTSI, and Cosco were unsuccessful.

By Taís Hirata

Source: Valor Econômico

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