Maersk Sues Brazil’s Transport Authority Over Unfair Port Auction Rules

Danish shipping giant Maersk has taken legal action against Brazil’s marine transport authority, Antaq, claiming the rules for the auction process at the Port of Santos are unfair and require procedural correction.

Maersk filed the lawsuit on Monday in a São Paulo court, targeting both Antaq and its general director. The case involves the bidding process for the Tecon 10 terminal at Santos, Latin America’s largest and busiest port.

The project is expected to draw an investment of approximately 5.6 billion Brazilian reais, equal to about $1 billion.

According to the lawsuit, Maersk is seeking changes to ensure what it described as a fair and transparent process. The current rules, established by Antaq, prevent companies that already operate container terminals at the Port of Santos, including Maersk and MSC, from participating in the first round of bidding.

The rule is currently under review by Brazil’s federal audit court, known as the TCU. Until a decision is reached, Antaq says it will not take further steps and has not yet received official notice of the lawsuit.

Another global shipping leader, the MSC Group, may also take similar action. Patricio Junior, regional investment director at Terminal Investment Limited (TIL), MSC’s port operating unit, confirmed that TIL is considering a lawsuit of its own if the TCU does not revise the bidding terms.

If the current auction rules remain unchanged, they could benefit other competitors, possibly from Asia or within Brazil. One likely local contender is JBS Terminais, a new port operations arm of meatpacking company JBS.

The company entered the port business last year by acquiring a container terminal at Itajaí, located in southern Brazil. However, JBS has not issued any comment on its possible participation in the Santos auction.

Antaq has promoted the Tecon 10 auction as the largest port project in the country’s history. The agency claims that its restrictions are aimed at boosting competition by limiting dominant players’ early access to the auction.

According to Antaq, if no valid proposals are received in the initial bidding phase, companies currently operating at the port, like Maersk and MSC, may take part in subsequent rounds, but only if they agree to give up their existing stakes in the Santos port complex.

Maersk issued a statement calling for more transparency in the process, adding that excluding global operators with proven efficiency, without proper analysis, could weaken the project’s long-term impact at such a critical port in Latin America.

Port users have also raised concerns. Eduardo Heron, technical director of the Brazilian Coffee Exporters Council, said the council is advocating for open and unrestricted participation in the bidding process.

As legal and regulatory evaluations continue, the $1 billion Tecon 10 terminal faces an uncertain future, with leading global shipping companies still demanding for an equal chance to take part in the bidding.

Reference: Reuters

Source: Maritime Shipping News