Auction of Megaterminal in Santos expected to take place in December, says minister

The megaterminal will occupy an area of 621.9 thousand square meters at the Saboó quay (STS10), next to Parque Valongo, in the Porto de Santos (Alexsander Ferraz/AT)

The Minister of Ports and Airports, Silvio Costa Filho, said on Tuesday (4) that the Federal Government maintains its forecast to hold the auction of the Container Terminal (Tecon) Santos 10, at the Saboó quay (STS10), in the Porto de Santos, later this year. The expectation, according to the minister, is that it will take place in December.

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The bidding documentation has been under review by the Tribunal de Contas da União (TCU) since May. Costa Filho will meet with the case rapporteur at the audit court, Minister Antonio Anastasia, this Thursday (6), in an attempt to expedite the completion and vote on the final report.

In an interview with the program Bom Dia, Ministro!, broadcast on CanalGov via YouTube on Tuesday (4), Costa Filho assured that the asset remains within the package of auctions that the Federal Government intends to carry out by the end of the year.

“This is an auction that has dragged on for more than 15 years, marked by numerous disputes, but now we have the determination and courage to make it happen. Our expectation is to conclude the process between December 15 and 30”, he said.

According to information obtained by A Tribuna from the TCU, there is still no estimate for the rapporteur to complete the report. “We expect that, in the coming days, the minister (Anastasia) will present the report and that it will be voted on by the TCU. From then on, we will be ready to schedule the auction”, said Costa Filho.

The minister reiterated that the Federal Government will comply with the Court’s position. “We will respect the decision of the Tribunal. Whatever the TCU determines, we will follow”, he declared.

However, Silvio Costa Filho maintained his stance aligned with the restrictive model established by the Agência Nacional de Transportes Aquaviários (Antaq). “We support a democratic and participatory auction, but one that prevents market concentration. When an operator controls 60%, 70%, or 80% of port operations, that can lead to higher tariffs and harm the port”, he warned.

The model defined by Antaq prohibits companies that already operate container terminals in Santos from participating in the first phase of the bidding process. These companies could only compete in a second round if there are no interested parties in the first, and only on the condition that they terminate their current contracts to assume the new one.

“I am very confident in the TCU’s decision and believe that, by the end of December, we will be able to hold this historic auction”, emphasized Minister Silvio Costa Filho.

MP opposes restriction in the bid notice The Ministério Público junto ao Tribunal de Contas da União (MPTCU) considers the restrictive model established by Antaq to be illegal. The opinion, signed by Procuradora-Geral Cristina Machado da Costa e Silva, was filed with the TCU last Thursday.

The MPTCU argued that the restrictive model lacks technical justification consistent with the principles of reasonableness, proportionality, and broad competitiveness required by Brazilian law.

The Procuradora-Geral agreed with the conclusion of the Unidade de Auditoria Especializada em Infraestrutura Portuária e Ferroviária (AudPortoFerrovia) of the TCU, which stated that the restriction violates the constitutional principles of isonomy (broad competition), efficiency, and proportionality.

The MPTCU understands that the proposed model would effectively penalize economic agents who assumed risks and chose to invest in the Port of Santos in the past, as they would be excluded from competing for a terminal that is strategic to both the national and international markets.

The Megaterminal The auction of Tecon Santos 10 will be the largest in Brazil, with investments estimated at over R\$ 6 billion and a concession fee (payment made by the winner to the Autoridade Portuária de Santos) that may exceed R\$ 1 billion.

The megaterminal will occupy an area of 621.9 thousand square meters (m²), with a capacity for 3.25 million TEU (twenty-foot equivalent units) per year, in addition to 91 thousand tons of general cargo. The contract term will be 25 years, renewable.

The Tecon Santos 10 contract will also enable the relocation of the Terminal de Passageiros Giusfredo Santini, operated by Concais, from Outeirinhos to Valongo, near the Centro Histórico de Santos. The future lessee will be responsible for building the floating infrastructure with pier, quay, and ship berths in front of Parque Valongo.

TCU’s slow pace The Tribunal de Contas da União (TCU) has been reviewing the Tecon Santos 10 bid notice for almost six months, since May of this year. The Court is analyzing the restriction imposed by the Agência Nacional de Transportes Aquaviários (Antaq), which prevents companies that already operate container terminals in Santos from participating in the auction. The agency’s goal is to avoid market concentration.

In July, the TCU held a panel — akin to a large public hearing — lasting more than three hours in Brasília, to hear arguments for and against the restrictions. The technical department of the Court issued a recommendation in favor of an open bidding process, as did the Ministério Público junto ao Tribunal de Contas da União (MPTCU). However, to date, no decision has been made by the Court’s ministers.