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Brazil's audit court has backed a two-step auction process for the Tecon Santos 10 terminal at the Port of Santos. The plan keeps current terminal operators out of the first bidding round, giving new entrants the first chance to compete. Existing operators will only be allowed in if the initial stage fails to bring valid bids. The project requires close to 6 billion reais (about USD 1.11 billion) in investment over 25 years and is expected to increase the port's container capacity by nearly 50%. The decision has received mixed responses from industry players.
Brazil's federal audit court, the Tribunal de Contas da Uniao (TCU), has agreed that the auction for the Tecon Santos 10 terminal should be held in two stages. The court reached this decision through a 6-3 vote. Under this format, companies that already run container terminals at Santos, including Maersk and MSC, will not be allowed to bid in the first round. They can participate only if the initial stage does not produce qualified bids. Advertisement
This structure was suggested earlier by the port regulator Antaq. The regulator believes that giving new operators a clear entry point could help balance competition at the port, which handles the largest container volume in Latin America. Industry discussions have mentioned possible interest from Asian port companies and Brazilian operators such as the port-focused arm of JBS.
The winning bidder will be required to invest close to 6 billion reais (around USD 1.11 billion) during the 25-year concession. The money will go toward expanding the terminal and related facilities. Once completed, the development is expected to increase container-handling capacity at Santos by almost 50%, easing pressure on existing terminals.
During the court's discussion, member Augusto Nardes said the two-stage format is meant to give independent operators a fair opportunity and reduce the risk of one company controlling too much of the port's operations. However, some members disagreed, raising concerns that keeping existing operators out of the first round might create competition-related issues. A public prosecutor also flagged that the restriction could conflict with general competition rules.
Industry reactions reflect this divide. ICTSI, a global terminal operator, welcomed the decision and described the two-stage format as a common approach that helps new operators enter competitive ports. Maersk, on the other hand, criticised the ruling, saying the court overlooked technical assessments from government agencies and warning that this could affect the project's long-term potential.
With the court's recommendation now settled, the Ministry of Ports and Airports will move ahead with setting the auction date. The ministry will need to take into account both the court's view and the concerns raised by companies already operating at Santos. Given the size of the project and the port's central role in Brazil's trade, the auction is expected to draw strong attention from the market.
Source Reuters
5th Jun, 2025
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