Container volumes at Santos Brasil’s flagship Tecon Santos terminal fell by 18.8% year-on-year in the third quarter following the termination of its key Asia service.
The facility handled 204,699 containers during the quarter due to the loss of the navigation service ESA’s contract.
This Asia service included vessels from CMA CGM, Hapag Lloyd, NYK, Hamburg Sud and Evergreen, and has moved to rival facility Libra Terminais Santos.
As a result of this loss Santos Brasil reported a fall in total consolidated volumes across all three of its container terminals, including Tecon Imbituba and Tecon Vila do Conde, of 13.5% – just 238,599 containers.
According to the operator, had the ESA service not been lost volumes at the Santos terminal would have remained stable while total volumes would have risen by 3.5%.
Both of the company’s smaller ports both performed well in the quarter – volumes at Imbituba rose by 87% due to the implementation of a new long-haul Asia service, while throughput at Vila do Conde grew by 26% due to increases in long-haul and cabotage operations.
The operator’s port terminals revenue fell by 21% in the quarter, which was attributed to ESA loss and low prices, while consolidated revenue was down by 6% to BRL209.3m (US$64.3m).
The company posted a net income of BRL1m (US$307,000), compared to a net loss of BRL1.1m (US$338,000) in the third quarter of 2016, while in the first nine months of 2017 the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 8% to BRL57m (US$17.5m).
Capital expenditure for the quarter was BRL500,000 (US$153,500) with the operator keeping investment levels low due to the country’s current economic recession which ‘still causes strong imbalance between the capacity offered and the demand for services, especially at the Port of Santos’.