Entrepreneurs foresee risk of depletion at the Port of Santos and call for expansion of areas

The steady growth of operations, coupled with inefficient planning over the last decade and delays in releasing new areas could lead to a depletion of capacity to store and handle containers at the Port of Santos. Entrepreneurs highlight that the Santos wharf is close to its capacity limit, with space constraints at terminals. The National Transatlantic Navigation Center (Centronave), representing shipowners, issues the warning.

In Santos, the berth occupancy rate in the first quarter of this year was 71%, above the level considered adequate by the Organization for Economic Cooperation and Development (OECD), which is 65%. "Today, a ship needs to wait an average of 20 hours to dock at the port due to high terminal occupancy", says Claudio Loureiro, executive director of Centronave.

Eduardo Heron, director of the Brazilian Coffee Exporters Council (Cecafé), asserts that there is a lack of infrastructure and capacity. "The yards of port terminals are full, limiting the reception of containers, adding high and unforeseen costs to exports".

According to Heron, in April of this year, 95 coffee export ships, or 80% of the total, experienced delays or schedule changes at the Port of Santos. "Even more impactful is the fact that, in April, 42 ships did not even receive a gate opening at the terminal", he says.

The terminals

The terminals claim to constantly invest in optimizing movement in the areas they occupy. Bruno Stupello, operations director of port terminals at Santos Brasil, says that Tecon Santos, the company's main asset, is undergoing expansion. "This year, between R\$ 250 millions and R\$ 300 millions will be invested to increase the terminal's capacity from the current 2.4 millions TEUs (twenty-foot equivalent unit, a standard container measurement) to 2.6 millions TEUs by the end of the year. Our expectation is to reach a capacity of 3 millions TEUs before 2027".

At Brasil Terminal Portuário (BTP), the current handling capacity is 1.5 million TEUs per year, but last year's handling reached 1.8 million.

"BTP will invest R\$ 1.9 billion in its container terminal to increase operational capacity by 40%", explains the company in a statement, concerned about the current situation at the Santos wharf. "Recent studies show that, by observing the demand curve in relation to operational capacity, which is the one that should be looked at, we are already at a warning level. By 2026, this level will grow to an unsustainable level", the company adds.

DP World Santos is also investing in the terminal, with berth and yard area installations. The capacity increase, in this case, went from 1.2 to 1.4 million TEUs per year. The approved investment recently announced for the terminal expansion, currently under construction, includes interventions in berth facilities. Capacity could be expanded to 1.8 million TEUs in the next five years, according to information from the terminal to the Santos Port Authority (APS).

Ecoporto, on the other hand, accounts for yard areas that are included in the container capacity estimates of the Port, adding approximately 300,000 TEUs to the Santos complex.

Space available

APS states that in 2022 the Port handled a record volume of 5 millions TEUs. In 2023, the volume was 4.8 millions TEUs. Currently, the capacity of the Santos complex is estimated at 5.9 millions TEUs, according to APS.

"This indicates that the Port has not reached its capacity limit", assures the Port Authority. The expectation is to reach 6.1 millions TEUs by the end of this year, according to the agency.

"The Development and Zoning Plan (PDZ) of the Port of Santos, which is the official planning instrument, reflects estimates made in 2020 when the capacity for container handling was estimated at around 5.3 millions TEUs per year, considering the four container terminals of the port complex".

APS adds that, since the publication of the PDZ, the terminals have been expanding their capacities. "Considering the current scenario, without the implementation of new terminals and without densification, the expectation is that the capacity will reach 7.5 millions TEUs by 2030, which will balance the capacity of the port park against the projected demand, at least until 2035", APS says.

State company admits the importance of increasing spaces

Although not considering that the Port of Santos has reached its capacity limit, the Santos Port Authority (APS) "understands that it is opportune to expand capacity above demand".

"APS maintains constant dialogues with all terminals in Santos, with a view to satisfactorily serving 100% of the cargo from the port's influence region", the authority says in a statement.

The port manager says it has been working on updating the Development and Zoning Plan (PDZ) of the Port of Santos, a planning instrument that must be constantly monitored and revised, "with the aim of harmonizing terminal capacities with market dynamics, ensuring efficient flow of cargo originating or destined for the Port of Santos", it explains.

APS mentions the allocation of areas in the Saboó regions, in Santos, including the greenfield area (where there is no pre-existing structure) to the BTP terminal, and Prainha, in Guarujá, to Santos Brasil.

"If densifications of these areas to the Santos Brasil and BTP terminals are made viable, we will surpass the originally projected scenario in the PDZ (8.3 millions TEUs per year), reaching 9 millions TEUs of capacity in 2040", APS projects. "There are still other proposed projects in the area of the port complex, with the potential to enable new capacities in the long-term horizon", adds.