Santos Terminal de Conteineres (Tecon I)

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In 1997, Santos Brasil S.A. acquired the concession to operate the country's largest container terminal, responsible for about 15% of cargo shipment in a bid against four internationally renowned consortia. Santos Brasil bid US$ 250.66 million (R$ 274 million), almost three times the set minimum price of R$ 101 million. Santos Brasil S.A. is a consortium comprised of Multiterminais Alfandegados do Brasil Ltda. (10%) and pension funds, 525 Participacoes S.A. (15%), Opportunity Leste S.A. (40%), Sistel (15%), and Previ (20%). The concession contract calls for a reduction of handling fees to R$ 150 within the two first years of the contract. Santos Brasil guaranteed a minimum cargo movement of 274,500 TEUs. After the signature of the concession contract, Santos Brasil signed a 3-year management contract with port operator HHLA. Handling charges have dropped significantly since concessioning out the facility (from R$ 500 to R$ 388 by January 1998) and the terminal productivity increased from 12-14 containers per hour to 22 in 1998. In 2000, more than 41.3% of the total containers managed by the terminal were operated at the rate of 40 per hour. In 2007, the company received the authorization to expand the capacity of Tecon 1. An additional investment of US$ 146. 2 million (BRL 285 million) was direct to the construction of this new terminal, called Tecon 4. Construction works were completed in Jan. 2010. Between 1997 and 2011, the company invested US$ 735.3 million (BRL 1200 million) in the port infrastructure. In October 2015, the company was able to negotiate a concession contract extension with the regulatory authority. The company was granted an additional 25-year contract extension in exchange for an additional investment in the facilities totalling US$ 380.7 million (BRL 1270 million). The investments undertaken by Santos – Tecon, year by year were: 1998 – US$ 4 million (R$ 4.9 million) 1999 – US$ 6.5 million (R$ 11.8 million) 2000 – US$ 5 million (R$ 9.7 million) 2001 - 2002 – US$ 9.4 million (R$ 27.7 million) 2003 - US$ 20.2 million (R$ 60.7 million)