With the renewal of the concession, the container terminal will operate until 2047
Santos, December 19th 2023 – The renewal of the lease contract for Brasil Terminal Portuário (BTP) was published in the Brazilian Union Official Journal today. The company has been authorized by the Ministry of Ports and Airports and Santos Port Authority to operate at Port of Santos for an additional 20 years. As part of the contract extending until 2047, BTP plans to invest R$ 1.9 billion (R$ 1.5 bi updated since December 2020) in the container terminal in the coming years. This represents one of the largest private investments in port infrastructure in Brazil in the last 10 years.
The protocol for the renewal request was submitted in May 2021 to the Port Authority, with initial commitment of R$ 1.5 billion. The process went through all required stages with transparency and adherence to regulatory frameworks, addressing information requests from authorities. The final vote by the Federal Court of Accounts (TCU) unanimously endorsed the process on the last day of 6th. With the authorization of the BTP lease renewal on this date, the investment amounts were adjusted, and BTP will invest R$ 1.9 billion according to the initial commitment with the government, an amount that could reach a total of R$ 2.5 billion.
For BTP’s CEO, Ricardo Arten, the company’s priority is to increase the operational capacity of the terminal by 40%. “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,” he states. With the increase, handling capacity can reach 2,1 million TEU per year.
The company’s investment package for the increased operational capacity includes acquiring a new fleet of electrified equipment, new maritime defenses for the dock, gate automation, and an extensive civil construction plan for building adjustments.
The quay capacity will be expanded with the purchase of four new and modern STS (Ship To Shore Crane/Portainer), totaling 12 units, in addition to new defenses. At the same time, yard capacity will be expanded, especially in the reefer area, increasing from the current 2,128 to about 3,500 refrigerated outlets. Additionally, 27 RTG (Rubber Tyre Gantry/Crane on Rubber Tires) and 46 Terminal Tractors will be acquired.
Investment History – BTP lease contract was signed in 2001 (effective from 22/01/2007) for a period of 20 years, extendable for another 20, based on the Brazilian Ports Law (8.630/1993). In addition to the planned investments with the contract renewal, which now runs from 2027 to 2047, BTP has already accumulated an equivalent investment of R$ 4.6 billion between 2007 and 2023. This was made possible by capital from its shareholders Terminal Investment Limited (TiL) and APM Terminals, with financing from the International Finance Corporation (IFC). Of this total, R$ 257 million were allocated to environmental remediation, a project that addressed the largest environmental liability in port areas in the country.
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,” emphasizes the executive.
APM Terminals Vice President for the Americas, Leo Huisman, emphasizes that the extension of BTP’s contract was a priority for the company in Brazil. “It is undeniable that the Port of Santos demands more capacity, with the potential to become a hub port for Latin America. With the renewal of BTP’s contract, we are convinced that Brazil will have more relevance and participation in international trade, raising the level of port infrastructure, operational performance, and sector competitiveness,” he details.
Job Creation – The contractual renewal of BTP will also encourage job creation in the Baixada Santista region. The updated expectation is that, during the extension period, the company will expand its workforce, hiring approximately 500 direct and 1,000 indirect employees during the construction phase. Currently, BTP has more than 1,500 employees in its permanent staff.
10 Years of Operations – In 2023, BTP completed 10 years of operations at the Port of Santos, reaching, in this period, the milestone of handling over 14.8 million TEU (Twenty-foot equivalent units) for both loading and unloading. The company received over seven thousand ships at its berths, connecting Santos to ports on all five continents, in addition to the Brazilian coast. Located on the right bank of the Port of Santos, BTP currently has the capacity to receive 3,900 trucks for loading or unloading every 24 hours.
Learn more about BTP: In operation since 2013, BTP – a private terminal for public use – has established itself as the largest container terminal in South America. Located in the Port of Santos, the company was responsible for remediating one of the largest environmental liabilities in the country’s port area. With 1,108 metres of quay, prepared to receive three new panamax class ships simultaneously, the terminal serves vessels with routes to all continents,
also providing cabotage and feeder services. A joint venture between Terminal Investment Limited and APM Terminals, BTP has obtained the international certifications OAS (Authorised Economic Operator), ISO 9001:2015 (Quality), ISO 14001:2015 (Environment) and ISO 45001:2018 (Occupational Health and Safety).