Global shipping entities are engaging Brazil's judiciary to challenge competition regulations preventing their first-round participation in bidding for a new container terminal at Latin America's largest port, scheduled for later this year.
Danish shipping company Maersk initiated legal proceedings in Sao Paulo against Brazil's maritime authority, Antaq, alongside its general director, as per a document reviewed by Reuters. Maersk called for "procedural corrections to ensure a fair process" pertaining to the allocation of the Tecon 10 terminal at the Port of Santos.
The auction guidelines, crafted by Antaq, are presently under examination by Brazil's federal audit court, TCU.
MSC Group, a privately controlled entity, is similarly advocating for regulatory modifications. Patricio Junior, regional investment director at MSC's subsidiary Terminal Investment Limited, mentioned possible legal action if the TCU does not mandate adjustments in the procedure.
The rules restrict Maersk, MSC, and other current operators at Santos from the initial bidding phase to construct and manage the forthcoming megaterminal, projected to require an investment of 5.6 billion reais ($1.0 billion). This could potentially allow access for Asian competitors or local operators, like JBS Terminais, the port division of Brazilian meatpacker JBS, which assumed control of a terminal at Itajaí, southern Brazil, last year. JBS opted not to comment.
Antaq, labeling Tecon 10 as Brazil's largest port auction, stated the rules aim to foster competition. Having not been formally informed about the lawsuit, Antaq reiterated that the process is under TCU review, awaiting a ruling. Should initial auction bids fail to materialize, existing terminal operators at Santos may partake in subsequent rounds, contingent on divesting their other port assets.
Maersk withheld comment on the suit, urging clarity in processes to ensure fair market practices. "Excluding companies with broad international experience, responsible for managing some of the most efficient ports globally, without thorough studies to support such a decision, significantly diminishes the project's potential at Latin America's largest port," Maersk stated.
Some major Santos port users raised concerns about regulations limiting eligible bidders for Tecon 10. Eduardo Heron, technical director of the Brazilian Coffee Exporters Council, stated the group's support for "broad and unrestricted participation."
Source: Reuters
