STS10 SANTOS GETS GOING BUT WITH SOME CONTROVERSY

The planned concession of the new so-called STS10 container terminal in the port of Santos, Brazil is running into stormy waters. Maersk and MSC already operate a large container terminal in Santos (Brasil Terminal Portuario) and against this background and with various parties pointing out the risk of excessive concentration of market power the federal government has prohibited Maersk and MSC jointly bidding for the new facility. They can, however, bid individually or in consortium with other parties.

Other arguments have also been raised against proceeding with the STS10 privatisation at this time including the danger of too much capacity too soon as well as concerns relating to the future of fertilizer and passenger terminals which are displaced by the project.

A period of public consultation for the scheme commenced in March and will run through to April with the auction for the concession expected to take place in the last quarter of the year.