Brazil Terminal Portuario 20-Year Concession Extension and Investment to Boost Capacity

Brazil Terminal Portuario 20-Year Concession Extension and Investment to Boost Capacity

Brazil Terminal Portuario (BTP), a major player among the top three container terminals at Santos, has successfully obtained a 20-year concession extension until 2047, sanctioned by Brazil’s Ministry of Ports and Airports and the Santos Port Authority.

As part of the extended agreement, BTP, a 50-50 joint venture between Terminal Investment Limited (TIL) and APM Terminals (APMT), is set to inject a substantial investment of at least BRL 1,900 million (USD 380 million) into the container terminal. The primary focus of this financial commitment is to enhance the terminal’s design capacity, increasing it from the current 1.50 million twenty-foot equivalent units (Mteu) annually to an impressive 2.10 Mteu.

While the pier length at BTP remains unaltered at 1,108 meters, significant developments include an expansion of the terminal’s ship-to-shore crane fleet from eight to twelve units. The comprehensive investment package encompasses various upgrades such as new fendering along all berths, automation of truck gates, additional yard cranes and tractors, and the provision of approximately 1,400 new electrical outlets for reefer containers.

Notably, the initial concession for Brasil Terminal Portuario was awarded to TIL, a sister company of MSC, in 2007, for a 20+20 year term. In 2012, TIL sold a 50% stake to APMT, just a year before the terminal commenced operations. The original lease had a provision allowing the concessionaire to extend the contract by 20 years, subject to meeting specific conditions.

Major users of BTP include sister companies MSC and Maersk, with MSC alone contributing to an estimated 50% of the terminal’s total traffic. Maersk and its Brazilian domestic branch, Allianca, collectively account for an additional 25% of the terminal’s usage. Other users include Hapag-Lloyd and CMA CGM, often operating in conjunction with Maersk or MSC.

In a related development, an unfortunate incident occurred at Antwerp on December 25, where an ultra-large ship-to-shore crane collapsed when a megamax container vessel was pushed into the quay during berthing. While no injuries were reported, two large gantries at the Noordzee Terminal seem to have been destroyed.

The expansion trend is not unique to BTP, as other terminals in Santos are also undergoing upgrades. DP World announced a USD 35 million investment to increase handling capacity at its Santos Terminal (formerly Embraport) from 1.20 to 1.40 Mteu annually and expand the quay from 1,100 to 1,300 meters. Tecon Santos received two new jumbo ship-to-shore cranes from ZPMC in November as part of an upgrade program, raising the terminal’s design capacity from 2.40 Mteu to 2.60 Mteu annually, with an extended pier of 1,200 meters, up from 1,050 meters.

Sources: Alphaliner

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