Brazil’s Finance Ministry has recommended that the auction of the Tecon Santos 10 container terminal be held in a single stage, requiring the winning bidder to divest assets if it already operates at the Port of Santos, in São Paulo. The ministry believes this approach would avoid procedural delays and legal challenges associated with the phased auction plan proposed by the National Waterway Transport Agency (ANTAQ).
The recommendation was prepared by the Economic Monitoring and Regulation team (Seae) of the Department for Economic Reforms. The analysts say that mandatory divestment by incumbents is already a “robust and effective” tool to prevent excessive concentration in port operations.
ANTAQ had suggested a two-stage process, barring current operators from the first phase and allowing them to participate only if there were no other bidders.
The government is awaiting an opinion from the Federal Court of Accounts (TCU), a public spending watchdog. Ports and Airports Minister Silvio Costa Filho has signaled that the auction could still take place this year.
According to the Finance Ministry, ANTAQ’s concerns focus on the risk of market concentration after the auction. However, the ministry argues that forcing the winner to divest existing assets at the Santos complex would be enough to avoid this outcome. It considers the two-phase structure “excessively burdensome” and beyond what is necessary to mitigate the risk.
“By allowing the auction to proceed in a single stage, while conditioning the victory of an incumbent on divesting assets or stakes at the Santos complex, the government can reduce concentration without increasing the risk of litigation,” the opinion states. “Given the port’s low idle capacity, procedural delays could severely affect Brazil’s foreign trade and national port policy in the short and medium term.”
The ministry also noted that a single-stage auction open to all bidders, combined with a divestment requirement for incumbents, “offers greater competition.”
In a statement, ANTAQ confirmed it had received the Finance Ministry’s opinion on the Tecon Santos 10 concession but declined to comment on the document.
“The process followed all required steps. After analyzing contributions and technical studies, ANTAQ’s board approved the matter and forwarded it to the Ports and Airports Ministry, which submitted it to the Federal Court of Accounts (TCU). The project now awaits review by TCU, and the agency will not make further comments,” ANTAQ said.
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