APM Terminals Announces $1 Billion Investment in Brazil

APM Terminals, Maersk’s container terminal operator, has announced a $1 billion investment in its Brazilian terminals through 2026.

The promise was made by Keith Svendsen, CEO of APM Terminals, during a visit to Brazil by a Dutch trade delegation.

Of the total investment of EUR 962 million, EUR 296 million will be used for the phase 1 development of a new terminal in Suape, with the total investment for the project amounting to EUR 483 million. The Suape terminal in Estaleiro Atlântico Sul is in the final stages of acquisition and is expected to improve infrastructure and boost competition in the port.

The remaining 666 million euros will be invested in APM Terminals’ four other terminals and inland depots across Brazil. This is part of a plan to significantly increase the storage capacity of inland container depots, particularly in the north-east and south-east regions of the country. In particular, around 285 million euros will be allocated for the renovation of the Brasil Terminal Portuário (BTP) in Santos, which the company sees as a top priority. The terminal, which is operated in partnership with Terminal Investment Limited (TIL), a subsidiary of MSC Mediterranean Shipping Company, is currently operating at 92% occupancy.

APM Terminals is negotiating with the federal government to extend the concession contract for the BTP terminal, which expires in 2027, by a further 20 years. In return, the company intends to modernize and double the terminal’s current capacity of 1.5 million TEU.

APM Terminals is also in talks with TIL to develop a new container terminal at the Port of Santos, known as STS 10, located in an area adjacent to the BTP terminal. However, the future of the project remains uncertain as it awaits a reassessment by the new government. The project has been the subject of controversy over concerns that Maersk and MSC already dominate the market, a concern APM Terminals CEO Keith Svendsen says is “unfounded”.

“There is now an urgent need for investment in the port of Santos, both to ensure the deepening of the access channel – allowing the entry of new, larger and more efficient ships – and to expand the capacity of the port complex, which is close to the limit,” said Svendsen.

In line with Maersk’s environmental commitments, APM Terminals aims to achieve net zero greenhouse gas emissions by 2040 and a 70% absolute emissions reduction from 2020 to 2030 for its commercially controlled terminals. The company’s plans include investing in electrifying appliances, purchasing or generating renewable energy, and optimizing to meet its zero-emission goals.

As part of an efficiency offensive launched in 2018, APM Terminals attaches particular importance to cost savings and shorter port times for ships. With this approach, the company says it is on track to reduce average port calls by 20% in 2023 compared to 2021 and is targeting a 30% reduction globally by 2025.

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