Cosco assesses participation in the Tecon Santos 10 auction amid participation rules
The Chinese company approached Brazilian authorities to express interest in the future container terminal in Santos, but is assessing the effects of rules that restrict groups with equity ties to operators already established at the port from entering the auction.
Cosco, one of the world’s largest shipping companies, approached Brazilian authorities to express interest in the auction for Tecon Santos 10, a future container terminal at the Port of Santos (SP). This move comes as international companies assess the opportunity to operate in Brazil’s leading port complex.
During a videoconference with government officials, representatives of the Chinese company expressed concern about the rules planned for the auction and the possibility that the company could be barred from submitting a bid. Cosco holds a residual equity stake of less than 5% in a fund that also has a minority stake in a container terminal in Santos.
The framework established by the National Waterway Transport Agency (Antaq) restricts, in the first phase, the participation of companies with any equity ties to operators of container terminals already operating in the Santos complex. The proposal was sent to the Federal Court of Accounts (TCU), which is still reviewing the model.
The auction was structured in two stages. Initially, groups that already hold stakes in terminals operating in Santos are barred from submitting bids. If there are no valid offers in this phase, the current operators may compete for the lease, provided they commit to selling their stakes in the existing assets before the contract is signed.
The restriction affects groups such as Maersk and MSC, partners in the BTP terminal, as well as other operators established at the port. At the same time, companies with a limited presence or no operations yet in Brazil have been identified as potential competitors, including ICTSI, JBS Terminais, Hapag-Lloyd, ONE, PSA, China Merchants, and Cosco itself.
Tecon Santos 10 is designed to increase the Port of Santos’s container-handling capacity by 50%. The planned facility will be located in the Saboó area, on the right bank of the channel, and will have an estimated nominal capacity of 3.5 million TEUs, in addition to facilities for general cargo. Deployment is planned in phases, with the first stage projected for 2027 and full capacity estimated for 2034.
The final definition of the rules still depends on the TCU’s review. Before issuing his opinion, the case rapporteur requested a statement from the General Superintendence of the Administrative Council for Economic Defense (Cade) on the competitive aspects of the framework.