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Brasil Terminal Portuário requests early lease renewal with R$1.3bn investment plan

Brasil Terminal Portuário requests early lease renewal with R$1.3bn investment plan
Ricardo Arten (left) and Diogo Piloni (right) in Brasilia

Brasil Terminal Portuário has requested an early renewal of its leasing contract at the Port of Santos, with an investment commitment of $1.3bn (US$250m) planned for the next 20 years of extension.

In an audience at the Ministry of Infrastructure, BTP’s CEO, Ricardo Arten handed over the document to the National Secretary of Ports, Diogo Piloni, presenting a programme for a concession period from 2027 to 2047.

Arten stated: “There was a public-private partnership throughout this process in which we built the plan. And the dynamics of dialogue with the government was fundamental, so that we elaborate an investment plan that allows the development of the port infrastructure while, at the same time, ensures the return to our shareholders.

“We understand that the bases of this document are very solid, and our expectation is that the Ministry of Infrastructure, through the Secretariat of Ports, will approve the request for renewal and proceed with the signature of the contractual amendment.”

The company’s planned investments include the purchase of four additional ship-to-shore (STS) cranes, 27 rubber-tyred gantry (RTG) cranes and 46 terminal trucks.

The acquisitions will give the terminal, which is a 50:50 joint venture between Terminal Investment Limited (TiL) and APM Terminals, a total of 12 STS units, 57 RTGs and 103 terminal tractors.

In addition to the equipment purchases, the proposals feature the strengthening of berths to be able to receive vesssels of 366 m in length.

Further developments include the automation process of the terminal’s gates, the relocation of the administrative building and the expansion of the reefer area.

With the above, the terminal’s operational area will increase by 24,000 sq m to 454,000 sq m.

Chairman of BTP’s board of directors and director of TiL, Patricio Junior, stated: “We believe in Brazil and we will continue to invest. This request for early renewal of BTP’s contract is proof of such. This country [has] already a gigantic potential.

“And to take off, we just need to pay more attention to the governance structures, insisting on a solid regulatory framework, which guarantees legal certainty for those who are investing in intensive capital and working hard to increase the national infrastructure competitiveness.”

BTP’s lease agreement was signed in 2007 for a period of 20 years, extendable for another 20 years, based on the Ports Law (12,815), with operations beginning in 2013.

The initial investment in the construction and implementation of the terminal reached R$1bn (US$190m), of which R$257m (US$50m) was invested on the environmental remediation of the area where the terminal is located (formerly known as the Alemoa’s dump).