APM Terminals (APMT) has pledged a €962 million ($1 billion) investment in its Brazilian operations up to 2026.
The figure includes a €296 million ($322 million) of a total €483 ($525 million) investment exclusively for the Phase One development of a new terminal in Suape.
The terminal, located in Estaleiro Atlântico Sul, is in the final stages of acquisition and will rejuvenate infrastructure and increase competition in the port, according to APMT.
The terminal operator has committed an additional €666 ($724 million) of investment to the its four other terminals and inland depots, by 2026.
A large share of this, around €285 million ($310 million), will be allocated to Brasil Terminal Portuário, Santos.
The company, which plans to multiply storage capacity fivefold at its inland container depots in the Northeast and Southeast of the country, will prioritise early renovation of its terminal in the Port of Santos, Brasil Terminal Portuário (BTP).
APMT is negotiating with the federal government to extend its concession agreement, which expires in 2027, for another 20 years.
In exchange, APMT would modernise and double the current 1.5 million TEU capacity of the terminal, which is currently operating close to full capacity at 92 per cent.
APMT holds that an initial investment of at least €285 million ($310 million) up to 2026, could reach €408 million ($443 million) over the next five years due to ongoing improvements.
As well as expanding BTP, APMT and TIL expressed joint interest in a new container terminal at the Port of Santos, STS 10, located in an area adjacent to its existing terminal.
The new government, however, has not yet defined the future of the project, which has been put on hold for reassessment.
With BTP operating at 92 per cent capacity, with 80 per cent capacity generally seen as the maximum for optimal efficiency, APMT’s CEO Keith Svendsen stated: “Our primary focus is increasing capacity and modernisation.
“There is now an urgent need for investment in the Port of Santos, both to ensure the deepening of the access channel – which will allow the entry of new, larger, and more efficient ships – and to expand capacity of the port complex, which is close to the limit,” Svendsen added.
The news comes a month after APMT Quetzal in Guatemala welcomed the WAN HAI A01, one of Wan Hai Lines’ largest containerships.