The companies were cleared to bid after offering to give up existing Santos port assets if one of them wins the auction.
The Brazilian antitrust agency CADE must review a recent authorization for the participation of global maritime transport giants Maersk and MSC in the long-awaited concession auction for the container terminal Tecon Santos 10 at the Port of Santos, the country’s largest and busiest, triggering a plot twist on the issue.
In August, CADE’s General Superintendence had accepted a proposal from the two companies, which are interested in taking part in the auction, which could generate investments of 6.45 billion reais (US$1.25 billion).
The accepted proposal was related to an action to prevent market concentration.
The two companies informed CADE that, if one of them won the Tecon Santos 10 auction, they could give up assets currently held at the Port of Santos to meet competition requirements.
Maersk and MSC said they would carry out a corporate reorganization involving Brasil Terminal Portuário (BTP), a terminal currently jointly controlled by the two companies at the Port of Santos. APM Terminals, Maersk’s port division, holds 50% of BTP, while the other 50% belongs to Terminal Investment Limited (TiL), MSC’s port arm.
But now, despite the authorization from the Superintendence, the president of CADE’s Board, Diogo Thomson de Andrade, has determined that the case be referred to the collegiate body, and the review still has no set deadline to take place.
The participation of the two giants has also drawn criticism from other companies. Philippine port operator International Container Terminal Services (ICTSI), which has an interest in the terminal, asked Cade to block the participation of the two companies in the auction.
In addition to Maersk, MSC and ICTSI, several other companies without operations at the Port of Santos are considering taking part in the bidding. Among them are PSA International, from Singapore; Hudson Ports, from the United States; Cosco Shipping, from China; the Brazilian groups J&F and CSN; the Japanese Ocean Network Express (ONE); the German Hapag-Lloyd; Abu Dhabi Ports, from the United Arab Emirates; and the South Korean Hyundai Merchant Marine.
Source: BNamericas
