Santos Gridlock Deepens as $1.29bn STS 10 Terminal Slips Further Away

Box ships calling at Santos are losing two to three days at berth, bulk carriers up to 20, while the $1.29 billion STS 10 terminal that could relieve Brazil's largest container port now looks unlikely to be awarded before the New Year. The Santos Shipagents Association (Sindamar) reports the delays as the tender for the new high-capacity facility — repeatedly billed as the cure for Santos congestion — slides past yet another deadline.

Mid-October marked the Ministry of Ports' deadline for completing a "working group re-evaluation" of the tender. No progress followed, according to the source reporting. That stall continues a pattern: last December, Brazil's Federal Court of Accounts (TCU) recommended a two-stage auction that would bar MSC and Maersk from the first round, but President Lula's Chief of Staff Office (Casa Civil) has since backed an open auction open to all bidders.

As one Brazil observer put it, "there have been more twists and turns in this saga than you'd see from an Olympic ice skater."

Who is bidding for STS 10?

The field has included ICTSI, Cosco, China Port Holdings (operator of a terminal in Paranaguá in southern Brazil), Port of Singapore and JBS Ports, a new Brazilian operator in Itajaí linked to the JBS meatpacking group. Abu Dhabi Ports Group has emerged as a fresh interested party after buying Brazilian agri-bulk terminal company CLI and two terminals for $835 million — the largest acquisition in its history. That deal included the CLI Sul sugar terminal in Santos and was cleared by both Antaq, the maritime transport regulator, and CADE, the national antitrust body.

DP World, also UAE-based and already operating a box terminal in Santos, cannot bid because it already owns a container facility in the port.

But the field may be shrinking. Constant delays and "political factors" have left JBS and Cosco getting cold feet, with pressure from Donald Trump and the US government on Brasilia not to allow Chinese companies to operate "key infrastructure" deterring Cosco and potentially affecting China Port Holdings too.

What happens to MSC and Maersk?

Government officials originally excluded MSC and Maersk from the first round to limit further market concentration and bring in new operators. Both carriers appealed, and the agencies involved are now "reconsidering" the original edict — a shift that appears to favor the two giants.

A São Paulo shipping agent, speaking anonymously for fear of losing business, said: "It seems that, once again, those parties unhappy with the process as laid out — on this occasion MSC and Maersk — have managed to delay the tender for long enough to overlap another Presidential election, hoping that their flag will flutter stronger under a Bolsonaro government." The source added that CADE, Antaq and most voices in the Ministry of Ports would prefer a fresh face to win, "but that might not happen now."

The delay now looks set to stretch into the New Year, when a new Minister of Ports will probably be appointed regardless of whether Flávio Bolsonaro or incumbent President Lula wins the presidential election.

How does the BTP split play out?

Attention is also turning to BTP, the current joint Maersk-MSC terminal operation and Santos's second-biggest box facility, which handled 1.98 million TEU in 2025 — a 34.4% market share. Santos Brasil, owned by CMA CGM, leads with 43%. The official line is that both carriers will bid and the winner will sell its 50% BTP stake.

Some reliable-sourced reports suggest Maersk might buy out MSC's 50% share before the tender, clearing the path for an MSC win. Maersk sources have denied this, and the São Paulo agent cautioned: "If that happens and MSC lose the tender they will be left with nothing in Santos, so not so sure about this." Other commentators read Maersk's moves as a clear Plan B should it fail to win STS 10.

Robert Grantham, director and founder of Solve shipping consultancy, said: "Maersk are now showing an open interest in other developments in Brazil such as in Paranaguá and São Sebastião." He described this as a back-up plan, noting greenfield deepwater space on the outskirts of Paranaguá for a second terminal to compete with TCP, and São Sebastião — 160 km east of Santos — as offering "some interesting transshipment options."

What is the cost of waiting?

José Roque, executive director of Sindamar, underlined the stakes: "These delays are especially expensive for container ships, with daily delay costs ranging from $60,000 to $100,000, depending on the vessel's length. Schedules are disrupted and the vessel's entire itinerary is badly affected and that has a cascading effect on several other vessels. We desperately need more capacity such as STS 10."

With the tender now drifting toward a post-election decision under a new minister, carriers and shippers calling at South America's largest container port face more months of queuing before any relief berth is built.