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TIL moves to challenge Brazil terminal auction rules

TIL, a subsidiary of MSC, is preparing to file a lawsuit to secure its right to participate in the bidding process for the Tecon 10 mega container terminal in Santos. According to investment director Patrício Junior, the action will be filed "as quickly as possible" following a decision by the Federal Court of Accounts (TCU) that allowed the government to move ahead with a two-phase auction model that restricts the participation of Maersk and MSC.

Junior said, "TIL will rely on the technical, and not political, votes of the TCU ministers to guarantee its right to participate in the auction while awaiting a contrary position from the Chief of Staff's Office and the President."

© MSC

By a vote of 6 to 3, the TCU upheld the position of Minister Bruno Dantas, confirming that the National Waterway Transport Agency (Antaq) has the authority to define bidding rules. Antaq supports a two-phase structure that bars container operators already active in the Port of Santos from Phase 1. Dantas recommended that the restriction apply specifically to shipping companies to avoid full vertical integration of port operations. Under both this recommendation and Antaq's original model, Maersk and MSC would be unable to take part, despite being partners in BTP and among the main interested parties in Tecon 10.

Junior said TIL intends to base its legal arguments on points raised by ministers Benjamin Zymler and Antônio Anastasia, who said the model was illegal but were outvoted. He noted that the company had been preparing its legal strategy in anticipation of the TCU ruling.

Maersk, also directly affected by the restrictions, had previously filed its own lawsuit opposing Antaq's proposed model. Additional legal actions from multiple parties are expected as the auction process progresses.

Source: DatamarNews / Valor Econômico

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