Port of Santos expansion proceeds at cost of US$2.9bn

The planned expansion of the Brazilian port of Santos will cost approximately US$2.9bn, according to the São Paulo State Port Authority (CODESP).

More than 70% of the investment will be obtained from the private sector and the rest will be provided by the state government, which is in charge of improving maritime and ground access to the port. The plan is based on a study carried out by the World Bank and should be ready at the end of this year. The study projects growth at the port of 158% between 2009 and 2024 and an increase in cargo movements from 89m to 230m tons.

 

Volumes of general cargo, such as containers and vehicles, are expected to grow by 238% by 2024. In the next five years, volumes are projected to increase by 58%, according to the study. In order to satisfy demand, the port will need 16 new specialised berths by 2024, of which nine must be built by 2014, according to the World Bank.

 

Currently three expansion projects are being carried out by terminal operators Embraport, Brasil Terminais Portuários (BTP) and Tecondi, with a combined value in excess of US$1.4bn. The most advanced of these is the Tecondi terminal on the port’s right bank. Among other improvements, the company is building a new 320 m berth that will have a water depth of 14.5 m, while old cranes are being replaced by new container-handling equipment. The terminal’s US$100m expansion programme will increase its capacity from 318,000 teu to around 700,000 teu within a year.

 

Embraport’s facilities are planned to become the biggest multi-purpose terminal in Brazil. The participants in this project are Odebrecht in partnership with DP World, with 51.5%; the Federal Government, through the federal unemployment insurance fund FGTS, with 33.3%; and the Coimex group with 15.2%. The total budget is US$500m. The first phase of the development will be completed by the end of 2012; by this date the terminal will be able to handle 1m containers a year. The second stage will be completed in 2014 and will increase container-handling capacity to 1.5m teu a year.

 

BTP’s project, costing nearly US$900m, is the largest of the three projects. The intention is to construct a multi-purpose terminal for liquid bulk and containerised general cargo. The planned three-berth facility will have an annual capacity of around 1.6m teu and 5m tonnes. The French group MSC is a partner in this initiative, which should be completed by 2012.

 

The private sector expects to benefit from government-funded improvements to maritime and ground access to the port – without the proper connections, the construction of new terminals is pointless. In addition to ground access, it is essential to improve rail systems, especially with the construction of the Sao Paulo line.

 

The terminal operators are also waiting for dredging projects to be carried out, with an initial 15 m draft due to be completed by May 2010 and eventually being extended to 17 m, which will allow the port to receive post-Panamax ships.

(Source: Container Management)