Ports of the Americas

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Santos Brasil ’ s flagship Tecon Santos terminal has an annual capacity of 2.5 million TEUs . Stefan Lambauer / Shutterstock . com

CMA CGM moves to take over top Brazilian terminal operator

By Greg Knowler

CMA CGM has signed a deal that will allow it to eventually gain full control of Brazil ’ s largest terminal operator , giving the ocean carrier direct management of its container operations in Santos , a port where rivals Maersk and Mediterranean Shipping Co . ( MSC ) operate Brasil Terminal Portuário ( BTP ) and DP World operates its Santos terminal .

Marseille-based CMA CGM already has purchased 47.6 % of Santos Brasil for $ 1.2 billion and plans to acquire the remaining shares “ in the coming months ,” the carrier said in a Sept . 23 statement .

Santos Brasil has five terminals in Brazil , three of which handle containers , and the port operator had throughput of 702,000 TEUs in the first half of 2024 , a 25 % increase year over year , according to its second-quarter earnings statement . Santos Brasil also operates a logistics company , CMA CGM said in the statement .

Once regulatory approval has been obtained for the 47.6 % takeover , CMA CGM will launch a public offer for the remaining shares at the same price of 15.30 reais ($ 2.78 ) each , a 20 % premium over the 12.71 reais ($ 2.31 ) closing price of Santos Brasil shares on the São Paulo Stock Exchange on Sept . 20 .

“ To meet global demand , CMA CGM intends to

accelerate investments in Santos Brasil terminals , with an objective to increase the combined capacity in the coming years , in line with the commitments undertaken by Santos Brasil with port authorities ,” the carrier said .

Along with the three container terminals , Santos Brasil manages a vehicle terminal , a liquid bulk terminal and three logistics facilities in the ports of Santos , Imbituba , Vila do Conde , Itaqui and in São Paulo .

Santos Brasil ’ s flagship Tecon Santos terminal , the largest container facility in South America , grew its throughput 26 % in the first half to 620,000 TEUs . The terminal has a capacity of 2.5 million TEUs that will soon be expanded to 3 million TEUs , CMA CGM noted in the statement . Its three berths can handle ships of up to 14,000 TEUs .

“ This strategic move will enable CMA CGM to offer seamless connections between Europe , Asia , North America and the Caribbean , solidifying Brazil ' s position as a key hub in the group ’ s worldwide operations and reinforcing synergies with Mercosul Line ,” it said .

CMA CGM acquired Mercosul from Maersk in 2017 , and the South American specialist is a key coastal shipping and intermodal service provider with 10 weekly mainline services operating every week calling at 14 ports around the country .

CEVA Logistics , a subsidiary of CMA CGM , also has a large footprint in Brazil with 530,000 square meters of warehousing on 36 sites across the country .

Rate levels from South America to the US East Coast have risen sharply in the past month , driven up 32 % year over year to $ 4,546 per FEU by a general rate increase on Sept . 1 that added almost $ 2,000 to the spot price , according to rate benchmarking platform Xeneta .

email : greg . knowler @ spglobal . com

30 Journal of Commerce | October 7 , 2024 www . joc . com