By Brazil Stock Guide – Brazil’s federal government plans to auction the Tecon Santos 10 container terminal concession in the first half of March, following clearance by the country’s audit court, as part of a R$ 6.4 billion ($1.3 billion) expansion that will lift the Port of Santos’ container handling capacity by 50%, according to the Ministério de Portos e Aeroportos.
The government expects to publish the tender documents in January, after completing an international roadshow with foreign embassies and global terminal operators. The auction will be overseen by Antaq, following final modeling adjustments recommended by the Tribunal de Contas da União (TCU).
“Tecon Santos 10 will bring R$ 6.4 billion in investments and expand Santos’ container capacity by 50%, which is critical for Brazil’s exports and port efficiency,” said ports and airports minister Silvio Costa Filho, adding that construction is expected to generate 2,500 direct jobs and 5,000 indirect jobs. He said the ruling removes the last regulatory obstacle to moving forward with what the government is calling the largest port auction in Brazil’s history.
With the TCU decision concluded, the project now returns to the ministry for final technical adjustments before publication of the bid notice by the end of January, said Alex Ávilla. Significant interest is expected from both domestic and international operators, he said, in what is set to become the most competitive port auction ever held in Brazil.
One key feature of the final model is the inclusion of a minimum concession fee (outorga mínima), adopted following TCU recommendations. The mechanism is designed to strike a balance between investor attractiveness and guaranteed fiscal revenue for the federal government, aligning upfront payments with the massive scale of the project.
The new terminal will occupy 621,000 square meters and will be dedicated to container and general cargo operations. Once fully operational, Santos’ annual container handling capacity is expected to reach nine million TEUs, driven by the addition of four deepwater berths for large vessels.
Already the largest port complex in Latin America, the Port of Santos accounts for roughly 29% of Brazil’s total foreign trade by volume. Under the concession model, the winning bidder will be selected based on the highest upfront concession payment, and the terminal will be granted under a 25-year operating contract.
Read more: Tecon Santos Auction Tradeoff
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