BTP under investigation for anti-competitive behaviour

Brazils Administrative Council for Economic Defense (CADE), the independent agency that reports to Brazil’s Ministry of Justice on competition issues, is to investigate Santos container terminal Brasil Terminal Portuário (BTP) for the alleged improper collection of Terminal Handling Charge 2 (THC2), which is levied on the delivery of imported cargo after unloading of a ship.

As a result, an administrative proceeding has been instituted by the agency’s federal superintendent to verify if the operator is carrying out anti-competitive practices or not.

The original complaint dates back to May 2017, when Marimex storage services company claimed that BTP had been unduly levying an additional fee on top of the basic handling fee when moving cargo from bonded sites.

Marimex additionally accused BTP of directly contacting its customers to persuade them to channel all requests through it and not through Marimex.

According to CADE: “The collection of THC2 would have affected competition in the market, artificially increasing BTP’s revenues. In addition, it would hamper the activity of independent bonded warehouses, making them a less competitive option for importers.”