Brazilian Court Agrees to Bar Maersk and Others in Santos Terminal Auction

Santos Brazil — Santos needs to add a new container terminal as it is near capacity but the plan seeks to bar all the current operators from bidding

A Brazilian court handed down a recommendation that sides with the country’s port administrator concerning the structure of the auction for the next port terminal concession in Santos. The court agreed with the authority that has proposed a structure that would bar the current operators of terminals in the port from bidding in the first round of the auction.

The Federal Court of Accounts in Brazil decided not to overrule Antaq (National Agency for Waterway Transport) in its proposal for the auction for a concession to operate a new terminal in Santos. The proposal calls for a two-stage auction process. The first phase will be limited to operators that do not currently have concessions in Santos. It would proceed to a second phase, which would be opened up to all the companies, only if the first round failed to receive a satisfactory proposal.

Antaq says its goal is to spur competition in the port and increase the total investments. Santos is the largest port in South America, but it is outgrowing its container capacity, which could be maxed by 2028. The auction is expected to be the largest in Brazil’s ports, and it will result in the largest container terminal in the country.

The current port operators, including Maersk’s APM Terminals, MSC’s TiL, CMA CGM, and DP World, all have already worked to expand their operations. They, however, have complained about the proposed structure for the sale, which would prevent any of them from bidding. Experts believe it is unlikely that the auction would ever reach a second round during which the four large companies could enter proposals. Maersk led the opposition, filing the legal complaint in June.

In a vote of six to three, the panel found that “simply disagreeing with the regulatory merit does not constitute illegality.” They agreed with Antaq’s proposal and encouraged the regulator to go further in the requirements. They said the port is currently highly vertically integrated, with the shipping companies controlling the terminals.

Maersk, however, argues that consolidation would benefit transshipments and the port’s operations. It contends that excluding the current operators would “significantly reduce the project’s potential.” Maersk and MSC already share a terminal operation and CMA CGM in 2024 purchased the largest operator.

Antaq expects the winning bidder will invest between $1 and $2 billion in the first phase of the development of the Tecon Santos 10 terminal with a total 25-year concession. The project is expected to increase the port’s container capacity by 50 percent. Among the other elements will be a requirement for an internal railway yard that will have a daily throughput capacity of at least 900 TEU.

Large international companies are all reportedly preparing to place bids. China’s COSCO Shipping is expected to be one of the bidders, and it has been reported that HMM might place a bid as it seeks to expand its terminal operations. The Philippines' ICTSI has already said it looks forward to bidding, and PSA is likely to enter. Local companies that operate smaller terminals in Brazil’s other ports are also likely to enter the bidding.

The expectation is that Antaq will move to launch the auction in the first quarter of 2026. However, it is also likely that Maersk or others will file litigation seeking to block the auction structure.