Removal of restrictions in the Tecon Santos 10 auction receives support from industry associations

In an official statement, the Chief of Staff’s Office of the Presidency of the Republic defended that the auction for the future Tecon Santos 10, located at the Saboó quay, should not include restrictions for companies (Alexsander Ferraz/AT Archive)

The position adopted by the Chief of Staff’s Office of the Presidency of the Republic regarding the bidding process for the Santos 10 Container Terminal (Tecon Santos 10), at the Port of Santos, was well received by industry associations consulted by A Tribuna .

In addition to requesting greater speed from the Ministry of Ports and Airports (MPor), the agency suggested, in a technical note, removing the restrictions previously planned for the auction. This would allow current operators at the Port of Santos to participate in the bidding process from the first phase onward.

In the document signed by the Deputy Secretary for Economic Infrastructure, Adailton Cardoso Dias, the Chief of Staff’s Office also suggested doubling the concession fee for the auction in the Saboó quay area (STS10), increasing it from the current BRL 500 million to slightly more than BRL 1 billion.

Enthusiasm

The Technical Director of the Brazilian Coffee Exporters Council (Cecafé), Eduardo Heron, did not hide his enthusiasm, considering both judicial and economic aspects.

“We had been following this discussion for quite some time and knew there was significant potential for litigation, mainly because there were no technical or evidentiary arguments justifying the imposition of such restrictions. Cecafé has consistently positioned itself in defense of competition, not competitors. An increase in the concession fee to BRL 1 billion is already being indicated. This demonstrates that the auction will be highly competitive”, he argued.

Heron believes that pressure for swift action must continue because, in Cecafé’s view, there is no longer any justification for delaying the auction. “There is an urgent need to increase the availability of yard and berth capacity at the largest port in the Southern Hemisphere so that cargo can flow efficiently, especially to avoid the losses we have been accumulating over at least the past two or three years. In 2025, these losses amounted to BRL 66 million”, he stated.

“We will also work to ensure other necessary investments are made in order to increase the competitiveness of the Port of Santos, such as the third downhill access route to the Baixada Santista region, deeper draft levels (in the access channel), and a new access ramp to the Port”, he added.

Damages and jurisdiction

The President of the Association of Private Port Terminals (ATP), Murillo Barbosa, recalled that the position presented by the Government is the same one the association has always defended. “We emphasize that any premature action aimed at preventing the participation of interested parties could cause irreparable damage. Furthermore, restricting participation could even lead to a loss of revenue for the Federal Government, since fewer participants would compete in the bidding process”, he stated.

Barbosa noted that, in ATP’s view, any potential market concentration at the Port of Santos, should it occur, must be addressed through the mechanisms provided by the Brazilian Government, namely through the actions of the Administrative Council for Economic Defense (Cade).

“Even Cade’s intervention would occur afterward, if the market were being harmed by such potential concentration”, he added. “Tecon Santos 10 will increase the Port of Santos’ container handling capacity by 50%. Naturally, those already operating there have the greatest interest in participating, even if this later results in the divestment of their assets”, he explained.

Land access to the terminal raises concerns

ATP President Murillo Barbosa emphasized that land accessibility is an extremely important factor to be considered in Tecon Santos 10. “We know that the Port of Santos already faces certain limitations in terms of land access. Therefore, increasing its capacity without a corresponding solution — whether by highway or railway — could, in the future, create a very serious bottleneck for the Port of Santos.”

The Chief Executive Officer of the Brazilian Association of Port Terminals (ABTP), Jesualdo Silva, recalled that although the terminal is expected to take approximately three years to reach full operation, caution regarding access infrastructure is necessary precisely because of the required logistics connections. “The terminal must move forward as quickly as possible, but there is concern that bottlenecks may worsen, producing the opposite effect: having terminals in place while cargo can neither enter nor leave efficiently”, he stated.

Silva left future considerations regarding the format to be adopted for the Tecon Santos 10 auction to the National Waterway Transportation Agency (Antaq) and MPor. “ABTP values legal certainty. Our understanding is that any opinion coming from any other ministry or governmental body must be assessed, carefully evaluated, and accepted by these agencies. In our view, they are the entities with the authority to address this matter.”

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Tecon Santos 10 will be the largest container terminal in South America. It will occupy 621,900 square meters, with capacity for 3.25 million TEUs (twenty-foot equivalent units) per year, in addition to 91,000 tons of general cargo. The expectation is that it will expand the container capacity of the port complex by 50%. The contract is planned for a 25-year term, with investments totaling BRL 6.45 billion.