Auction of megaterminal in Santos should be without restrictions, says TCU report

The target of controversies, Tecon Santos 10, the largest in Brazil, has an expected investment of R\$ 6.45 billion (Alexsander Ferraz/AT) (Alexsander Ferraz/AT)

The Specialized Audit Unit for Port and Railway Infrastructure (AudPortoFerrovia) of the Tribunal de Contas da União (TCU - Federal Court of Accounts) has issued a final opinion on the auction process for the container terminal Tecon Santos 10, located at the Saboó dock (STS10), recommending that the bidding be conducted in a single phase, open to all participants without restrictions, according to information obtained by A Tribuna .

The opinion contradicts a measure previously established by the Agência Nacional de Transportes Aquaviários (Antaq), which had prohibited the participation of companies that already operate container terminals at the Port of Santos. According to Antaq's model, such companies would only be allowed to participate in a second round, and only if the first had no interested parties.

The document was uploaded to TCU’s system at 7:48 p.m. on Monday, but remains confidential and is not publicly accessible. Also according to A Tribuna’s reporting, AudPortoFerrovia, the technical unit at TCU responsible for overseeing and analyzing such projects, recommends that if a company already operating a terminal in Santos wins the auction, it should be required to undertake a “divestment” — in other words, sell its current asset in order to take over Tecon Santos 10.

This applies to companies such as MSC and Maersk, which control BTP. Under Antaq’s rule, these shipping giants are currently barred from participating in the auction.

A 15-day period has been opened for the Autoridade Portuária de Santos (APS) and Antaq to provide comments on the opinion. The aim of AudPortoFerrovia is to provide technical input so that the TCU ministers can make a decision regarding the auction model, which is expected to happen in the coming days. TCU’s press office informed A Tribuna that no date has yet been set.

The ministers, however, are not required to follow the recommendations of the report, as it is non-binding. The Court has previously ruled against similar opinions.

The megaterminal will have a handling capacity of 3.25 million TEU (twenty-foot equivalent units) per year, in addition to 91,000 tons of general cargo.