Brazil Cancels Santos Terminal Auction, Hands Area to Petrobras

By Brazil Stock Guide – Brazil’s federal government has formally removed the STS08 liquids terminal, located at the Port of Santos in São Paulo state, from its national privatization pipeline, canceling plans to auction the 152,300 square-meter area to private investors. The decision clears the way for the site to be incorporated into an adjacent terminal already operated by Petrobras (PETR4), the country’s state-controlled oil company, reinforcing its presence in Latin America’s busiest port.

The move was ratified through Resolution CPPI No. 363 on January 28, 2026. The CPPI — the federal council overseeing the Investment Partnerships Program (known by its Portuguese acronym PPI) — is responsible for including or excluding infrastructure assets from Brazil’s concession agenda. Once removed from the PPI, a project can no longer be auctioned under the standard federal privatization model.

STS08 is located in the Alemoa industrial district of the Port of Santos, a key hub for fuel storage and distribution. Santos handles roughly one-third of Brazil’s trade by value, making it strategically important for imports and exports, including energy products. The terminal had previously failed to attract bids in a 2021 auction attempt.

Instead of relaunching the concession, the government opted to allow Petrobras to expand its neighboring STS08A terminal into the area. The strategy focuses on increasing storage tank capacity and improving fuel logistics efficiency. Authorities have justified the shift on energy security grounds, arguing that consolidating operations under a single operator reduces fragmentation in a critical supply chain.

For international investors, the decision signals a more selective approach to privatizations in Brazil. While the PPI was originally created to attract private capital into infrastructure, the current administration appears more cautious about auctioning assets considered strategic to national energy supply. In the case of STS08, the government chose consolidation under a state-influenced company over reopening the bidding process.