By The Rio Times | Created at 2025-01-14 10:34:41 | Updated at 2025-01-14 23:29:40
13 hours ago
DP World, the Dubai-based port operator, is considering fast-tracking investments in its Santos container terminal. The company aims to boost capacity from 1.3 million TEUs to 2.1 million TEUs by 2027.
This information comes from Fábio Siccherino, DP World’s country president in Brazil. The current investment plan of R$ 450 ($75) million will increase capacity to 1.7 million TEUs by next year.
This expansion includes extending a berthing dock and purchasing new equipment. However, due to high demand, DP World is exploring the possibility of advancing future growth plans.
In 2024, all container terminals in Santos reached full capacity. This surge in demand has prompted DP World to initiate discussions with its Dubai headquarters. The company is now considering pushing capacity directly to 2.1 million TEUs instead of stopping at 1.7 million.
If approved, the expanded project would be completed in 2026. The already contracted interventions would be finished by mid-year, with the additional expansion following by year-end. This extended timeline accounts for equipment procurement and delivery.
DP World Accelerates Expansion Plans for Santos Container Terminal. (Photo Internet reproduction)The additional investment plan would require new equipment and the construction of another container berth. It would also involve expanding the terminal’s storage yard capacity.
Growth Prospects and Innovation Challenges
Despite macroeconomic uncertainties in Brazil, Siccherino believes this is an opportune time to invest in the container segment. DP World has diversified its private terminal in Santos in recent years.
In 2020, it launched a pulp operation in partnership with Suzano. Last year, it signed an agreement with Rumo to build a grain and fertilizer terminal, with investment from CHS Agronegócio.
The terminal began operations in 2013 as Embraport, with Odebrecht as the major shareholder. DP World, already a stakeholder, acquired Odebrecht’s share and assumed control in 2017.
However, this acquisition came with substantial dollar-denominated debt, leading to years of operational losses. Siccherino states that the new operations have improved the group’s perception of its Brazilian business.
By 2027, DP World’s Santos terminal is expected to reach its full capacity. This includes an annual movement of 2.1 million TEUs, 5 million tons of pulp, and 12.5 million tons of grains and fertilizers.
Future growth possibilities for the container terminal include implementing new storage technology used in Dubai. However, this innovative mechanism requires significant investment and is not currently viable.
