Those close to the TCU (Federal Audit Court) assume that the federal government will fully comply with the court’s recommendation regarding the auction of Tecon 10, the mega cargo terminal of the port of Santos.
Last Monday (8), the TCU approved, by 6 votes to 3, the indication made by the minister responsible for reviewing the process, Bruno Dantas, that the event takes place in two stages. In the first round, the participation of shipowners would be prohibited; they could only submit offers in a possible second phase. Being a highly sought-after asset, the market consensus is that there will be no second leg.
With the possible acceptance of the government, companies that are excluded from the first phase of the competition will present legal actions to try to paralyze the process.
The TCU is confident that the Federal Government will comply with the recommendation, although Court Ministers are aware, as was published in the Leafthat the Lula government (PT) is in favor of an unrestricted event — notably the PPI (Investment Partnership Program).
THE Leaf noted that last week, before the session that would define the subject, the Minister of Civil Home, Rui Costa (PT), met with the members of the TCU to find out what the deliberation on the subject would be. The minister responded that he understood the point of view that would be presented. The Civil House is the main focus of resistance to the restrictions imposed on the concession.
According to the court, the government will also comply with the recommendation of a minimum subsidy of 1 billion reais and the application of instruments to prevent the entry of shipowners or investment funds (which must also be prohibited) as silent partners.
Upset by the possibility that the government would not follow the recommendation, TCU ministers discussed the possibility of imposing a condition that if the advice was contrary to the court’s opinion or Antaq’s modeling, the matter would have to revert to the TCU. This would significantly delay the project.
Minister Bruno Dantas even included it in his opinion, but promised to withdraw this requirement.
This Friday (12), the Minister of Ports and Airports, Silvio Costa Filho (Republicanos-PE), said that, despite the restriction, more than ten groups would be interested in participating in the auction. The statement repeats an estimate the ministry had made previously, when the Court’s recommendation had not yet been completed.
The minister cited among the interested Brazilian groups, such as JBS and JSL, in addition to the Philippine ICTSI, adding that Chinese and Arab funds would also like to participate in the auction.
This would be an exception. Since the creation of the PPI in 2016, no port concession in the country has had more than four bids, a figure that has only been reached twice in 69 competitions held.
For the six TCU ministers who approved the recommendation, this restriction means preventing all the terminals of the country’s main port from being in the hands of shipowners. For these companies, this is something inexplicable because it means giving up the competition, expertise and productivity of the largest global companies in the sector.
“It is possible that the government follows the line of a free Brazil, open to foreign capital. The government certainly sees this,” says Patricio Junior, investment director at Til (Terminal Investment Limited), the container division of MSC, one of the largest shipping companies in the world and which could be excluded from the first phase if the TCU recommendation is accepted.
The opinion of the PPI board members is that the auction should be open to everyone. It is the body, headed by President Lula, which approves the conditions for the privatization of assets. The contradiction became even greater with the ban targeting all shipowners, and not just those with terminals in Santos, as recommended by Antaq (National River Transport Agency).
The TCU’s deliberation would have made the auction too restrictive, particularly for members of the government in favor of the entry of a Chinese historical operator into the port of Santos.
The day after the session, Silvio Costa Filho was at the presidency to meet Lula and other members of the government. The subject of Tecon 10 came up.
The restriction opens the door to the union of port operators who already operate in Brazil, but who do not have the same expertise as large shipowners in the movement and storage of containers. The market is observing the possibility of joint ventures and mergers that start in Santos and extend to the operation of other ports in Brazil and abroad.
The government’s idea has always been to hold the auction by the end of this year. How Leaf Anticipated, the new proposal is to organize a roadshow to present the notice to potential investors and to hold the call for tenders in March 2026.
With information from Reuters
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