A major new container terminal at Brazil’s Port of Santos, called Tecon Santos 10, is now under review by a federal court after the world’s largest shipping companies challenged the rules for its upcoming auction.

The project, which requires an investment of about R$ 5.6 billion over 25 years, aims to expand the port’s capacity by 50% and help solve congestion that threatens Brazil’s trade growth.

The latest development came this week when a federal judge in São Paulo gave Brazil’s waterway transport regulator, Antaq, ten days to explain why it set auction rules that block current operators from bidding in the first round.

The court’s move follows a lawsuit by Maersk, a Danish shipping giant, which claims the rules unfairly exclude experienced companies and could hurt competition.

Antaq’s model divides the auction into two phases. In the first, only companies that do not already run container terminals in Santos can bid.

If no new players step forward, the second phase opens the door to current operators, but only if they agree to sell their existing terminals. Antaq says this approach will prevent too much market power in the hands of a few global groups and encourage new investment.

Mega Terminal Auction at Santos Port Faces Legal Scrutiny as Brazil Seeks More Competition. (Photo Internet reproduction)

The Port of Santos is the busiest in Latin America, handling more than 40% of Brazil’s container trade. Its three main terminals, run by Maersk, MSC, CMA CGM, and DP World, are already close to full capacity.

Without new infrastructure, experts warn that the port could face serious bottlenecks by 2028. The auction has drawn interest from both international and Brazilian companies.

Port Auction Battle Could Reshape Brazil’s Trade Gateway

JBS Terminais, part of the country’s largest meat exporter, is seen as a strong contender. Asian shipping groups like Cosco and PSA are also expected to compete.

Critics, including the São Paulo state government and some industry groups, argue that excluding established operators could lead to less efficient service and higher costs.

They suggest allowing all companies to bid, as long as they commit to reducing their market share if they win. Brazil’s federal audit court, the TCU, recently decided not to suspend the auction, saying there was no clear evidence of wrongdoing.

However, it will continue to review the process and could still require changes before the auction goes ahead, which is expected by the end of 2025. The outcome of this dispute will shape the future of Brazil’s main trade gateway.

If the auction brings in new players and more investment, it could help the country’s exports and imports flow more smoothly. If not, congestion and higher costs could slow down one of Brazil’s most important economic engines.