Brazil’s Largest Port Auction Faces Controversy

While the final rules are still being reviewed and contested for what stands to be Brazil’s largest ever port auction, controversy is swirling around the auction, which is due to launch late this year. Reuters is reporting that Maersk’s AMP Terminals has taken the first step to contest the rules by filing a lawsuit in the Brazilian courts, while MSC’s TiL told Reuters it was also considering a legal action.

The port of Santos is not only Brazil’s largest container port, but it is also the largest in South America, and its expansion is viewed as a major prize for the international carriers. Antaq, the government agency that oversees the ports, has said Santos will run out of capacity in a matter of years and called the plans for Tecon 10 a critical step in the future of the port.

International Interest and Investment

Antaq announced its plans for the auction earlier this month, and despite strong international interest, it said the bidding would be limited to exclude companies with current operations in Santos. They contend it will draw new investment to the port for a project that is expected to require an investment of nearly $1 billion on the 25-year concession.

Reuters speculates that the rules, however, open the opportunity for Asian rivals to gain a major foothold in the port and South America. China has been investing heavily in developing ports in South America, including the new Chancay megaport in Peru, which was dedicated in November 2024. China Merchants Port Holdings Co. reported in February 2025 that it completed an agreement calling for it to acquire 70 percent of Vast Infraestrutura, owner of Brazil’s only privately operated VLCC terminal.

Competitors and Expansion Plans

Among the domestic competitors for the new terminal, Reuters reports Brazilian meat packer JBS could be a contender. The company took over the container terminal at Itajal in southern Brazil.

Maersk and MSC have both been posturing to expand their positions in Santos and the Brazilian market despite opposition from domestic operators. In 2023, APM Terminals announced plans to invest up to $1 billion in its terminal operations in Brazil. The company shares the operation of an existing terminal in Santos with MSC. At the end of 2023, it was reported that Brazil’s Ministry of Ports and Airports, together with Santos Port Authority, had renewed the concession for Brasil Terminal Portuário (BTP) for 20 years after a more than two-year review.

The companies committed to increasing their investment in the operations at the port of Santos. They said in 2023 that the terminal, which has a capacity to handle 1.5 million TEU, was at 95 percent of capacity.

Call for Transparency and Fair Competition

Under the terms proposed for the new auction, companies with existing operations would only be eligible if a second round is required after no viable proposals were submitted in the first round. Even then, the operators would have to commit to divesting their other holdings in the port to win the concession for the new terminal.

Maersk declined to comment to Reuters on the legal action but said it wants “a more transparent process.” It is calling for fair competition for the new terminal concession.