terminal lease in Santos
Ports and Terminals

EPL delivers assessment for terminal lease in the Port of Santos

Dec, 20, 2021 Posted by Gabriel Malheiros

Week 202149

The public enterprise known as Empresa de Planejamento e Logística (EPL) delivered to the Ministry of Infrastructure the feasibility assessment for the STS 10 terminal lease, which is located in the Saboó region, on the right bank of the port of Santos (SP). The terminal project, intended for the handling of containers, is expected to generate approximately R$3.28 billion in investments, with approximately R$2.5 billion in the first 5 contractual years.

With an area of 601,101 square meters, the terminal will be leased for a period of 25 years and will have an operational capacity of 2.3 million TEUs per year. The assessment also contains information about the terminal’s potential demand and the engineering solutions that such a project would require, in addition to its economic-financial modeling.

To assess the potential for attracting cargo to the STS10 terminal, the EPL team carried out a technical visit to the Port of Santos to determine the installed capacity for handling containerized cargo in the port complex. Additionally, the team also consulted the information available at the Santos’ Development and Zoning Plan and the city’s Master Plan.

After Ministry concludes studying the assessment, the project will go through a public hearing, which is conducted by the National Waterway Transportation Agency (ANTAQ).

Innovation – To guarantee full competition conditions for those interested in the terminal lease, the EPL developed a methodology that ensures competitiveness. The ” Analysis of the Competitive Impact of New Concessions of Port Terminals (AIC-TP)” aims to assess whether the terminal to be leased or granted gives rise to competition concerns, in light of the Competition Defense Law (Law No. 12,529/2011 ).

The analysis seeks to ensure competition in two moments: during and after the auction, and in establishing a healthy competitive environment after the grant. Its most relevant points are the definition of constitutes a “relevant market”,  the assessment of possible horizontal overlaps and vertical integrations.

This is the first assessment on the leasing of a port terminal that adopts the Analysis of the Competitive Impact of New Concessions of Port Terminals (AIC-TP).

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