Brazilian port operator Santos Brasil has announced that the country’s special port department SEP approved an early 25-year extension of its concession to operate Tecon Santos terminal, thus extending the company’s lease to 2047.
The extension of the current 25-year concession, which started in 1997 and was supposed to end in 2022, comes with the government’s approval for a BRL1.2bn (US$315m) investment plan for the facility’s expansion and modernisation.
The project, which is scheduled to begin in 2016 and be completed in four years, will increase the handling capacity of the terminal to 2.4m teu from the current 2m teu.
The investment plan includes the expansion of the wharf from the current 980 m to 1,200 m by extending the Export Vehicle Terminal (TEV) pier, thus enabling the simultaneous berthing of three new post-Panamax vessels with a capacity of 7,000 to 12,500 teu.
Antônio Carlos Sepúlveda, president of Santos Brasil, said: “With the new investments, Tecon Santos, which is already a benchmark in container handling, will be able to efficiently operate the megaships that will soon be arriving at the port, giving Brazilian importers and exporters more competitiveness.”
The project, which includes dredging to deepen the terminal’s berths to 15 m and strengthening of the structure of the entire pier, will also bring the purchase of new equipment, among which 44 electric rubber-tyred gantry (RTG) cranes, 16 rail-mounted gantry (RMG) cranes and 140 terminal tractor-trailers for handling cargo in the yard.
Tecon Santos, which is South America’s largest container terminal, is located in São Paulo state’s Port of Santos, which ranked 36th in the 2015 issue of CM’s World Top Container Ports, having handled 3.7m teu in 2014.