The Ministry of Ports and Airports and the Santos Port Authority have granted Brasil Terminal Portuário (BTP) permission to continue operating in the Port of Santos for another 20 years.
BTP aims to invest R$1.9 billion ($380 million) at the container terminal over the next few years as part of the contract, which runs until 2047.
The Port Authority received the protocol for the renewal request in May 2021, with an initial contribution of R$1.5 billion ($308 million).
According to reports, the procedure proceeded through all needed phases with openness and conformity to regulatory standards, while also responding to information demands from authorities.
On the penultimate day of the 6th, the Federal Court of Accounts (TCU) unanimously supported the process.
The investment levels were changed with the approval of the BTP lease renewal on this day, and BTP would invest R$1.9 billion according to the initial promise with the government, an amount that may total R$2.5 billion ($514 million).
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For BTP’s CEO, Ricardo Arten, the company’s priority is to increase the operational capacity of the terminal by 40 per cent.
“We will grow in efficiency and sustainability, with a lot of innovation and new electrified and more digital equipment, in line with our ESG [Environment, Social, and Governance] guidelines. We aspire to be a reference in excellent port operation that combines economic development, job creation, environmental respect, and social inclusion,” Arten stated.
According to APM Terminals (APMT), the expansion will improve handling capacity to 2.1 million TEU per year.
The company’s investment package for enhanced operating capacity reportedly includes the purchase of a new fleet of electric equipment, new maritime defences for the port, gate automation, and a comprehensive civil construction plan for building modifications.
The dock capacity will be increased by purchasing four new and sophisticated ship-to-shore (STS) cranes, increasing the total to 12, as well as new defences.
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Simultaneously, yard capacity will be increased, particularly in the reefer area, from the existing 2,128 to around 3,500 refrigerated outlets. Furthermore, 27 rubber tyre gantry cranes and 46 terminal tractors will be purchased.
This was made possible by funds from its owners Terminal Investment Limited (TiL) and APMT, as well as finance from the International Finance Corporation (IFC).
According to APMT, R$257 million ($41 million) of this total was allotted to environmental cleanup, a project that addressed the country’s greatest environmental liability in port regions.
For the Chairman of the BTP Board of Directors and TiL Director, Patricio Junior, these contributions demonstrate the willingness of investors, such as TiL, to continue investing in Brazil and its business opportunities.
“We believe in Brazil, in the country’s enormous potential. To advance even further, investors need clear rules and parameters of legal security. Predictability and legal certainty drive business and attract more opportunities and new jobs,” Junior emphasized.
In October, APMT Suape received permission by Brazil’s National Waterway Transport Agency to alter its cargo portfolio.
