Tecon Santos 10: MPor agrees with restricted auction at the Port of Santos

The measure prohibits the participation of companies that already operate container terminals at the Port of Santos (Alexsander Ferraz/AT)

The Ministry of Ports and Airports (MPor) has officially expressed support for the restriction imposed by the National Waterway Transportation Agency (Antaq) in the bidding notice for the Tecon Santos 10 Container Terminal auction. The measure prohibits the participation of companies that already operate container terminals at the Port of Santos, based on the argument of preventing a few groups from further expanding their dominance in the sector. According to MPor, this is the most appropriate solution to ensure long-term competition, lower tariffs, and higher quality services.

The opinion was submitted to the Federal Court of Accounts (TCU), officially filed at 10:41 p.m. last Friday (26), the final day of the deadline granted by the Court for comment. In the document, which A Tribuna had access to, the Ministry states that the public interest requires a neutral operator not currently active at the port, in order to reduce risks of market concentration.

"What proves to be more competitive is the entry of a new player into the Santos port complex, especially a player with no ties to pre-existing market elements, whether due to legal conditions or because it already holds assets in the Santos port complex", the document states.

The position aligns with the decision of Antaq’s board of directors and reinforces a warning issued by the Administrative Council for Economic Defense (Cade), which concluded in a technical note on Wednesday (24) that awarding the concession to companies already operating on the dock represents a potential risk to competition. MPor, however, diverges from the TCU’s technical department, which had recommended an unrestricted auction.

MPor argues that the purpose of a public port is not to maximize immediate revenue, but to provide efficient and competitive services. While the absence of restrictions may increase competition during the auction and raise the initial concession fee (the amount the winner pays to the government), the Ministry believes this would undermine the terminal's neutrality and reduce the diversity of options for users and shipping companies. The Ministry emphasizes that, in concentrated markets, behavioral remedies such as access rules and monitoring are costly, difficult to enforce, and generally ineffective.

Therefore, the document advocates for structural measures, with a clear limitation on who can compete for the asset. "An adequate structural remedy to avoid shutting the country off from new routes and to prevent disruption of the bargaining power of specific groups over the entire supply chain — which could make the country vulnerable amid the complexity of a new global geopolitical configuration. On the other hand, ensuring the existence of a neutral port would allow the entry of independent shipping companies and the development of competing routes", the opinion states.

The Ministry also suggests that the TCU consider adopting a two-phase auction model, as provided for by Antaq. In the first phase, stricter requirements would apply, along with a minimum concession value consistent with the asset’s relevance. If no interested parties emerge, a second, more flexible round would be opened.

MPor reiterates its commitment to holding the auction still in 2025, in compliance with TCU determinations and in coordination with Antaq. The Ministry underscores that more important than securing high concession revenues is ensuring that the largest container terminal in South America is awarded to an independent operator capable of enhancing the competitiveness of the national logistics chain.