APM Terminals to invest over $1bn in Brazil by 2026

Keith Svendsen emerges new CEO of APM Terminals as Engelsoft retires
Keith Svendsen


AP Moller -Maersk’s APM Terminals plans to invest $1.05bn (BRL5.2bn) in its port terminals in Brazil by 2026.

The investment plans were set out by APM Terminals Global President, Keith Svendsen, during his visit to the country this week, as reported by Brazilian media.

The company’s priorities are to renew its contract with the Port of Santos for the terminal BTP [Brasil Terminal Portuário], operated in partnership with TIL (a subsidiary of the MSC group). The company is currently negotiating an extension of the contract with the federal government, which expires in 2027, for another 20 years.

In exchange, the two terminal operators commit to expanding and modernising the terminal, investing at least $310m (BRL1.54bn) – an amount that could end up being even higher since BTP’s idea is to invest beyond the minimal requirement. According to the group, the amount could reach $440m (BRL2.2bn) over the next five years.

The Port of Santos is in urgent need of investments that could ensure the deepening of the access channel’s depth, allowing the transit of larger and more efficient ships – and expand the port’s current capacity is close to the limit, said Svendsen.

“The port is 92% full today. Usually, when a port reaches 80% of its capacity, operations start to get tricky. We believe it is necessary to double Santos’ capacity soon, and many projects need to be done. In the short term, our focus is to expand the terminal [BTP] capacity,” he said.

In addition to expanding the BTP, APM Terminals is interested in building a new container terminal at the port, STS 10, located in an area adjacent to its terminal with TIL.

Also, in addition to BTP, APM Terminals maintains operations in five port terminals throughout Brazil: Itajai and Itapoa (both in Santa Catarina; Paranagua (in Parana); Rio Grande (in Rio Grande do Sul); and Pecem (Ceará).

The group is also gearing up to build a new terminal in Suape, in Pernambuco, in the area previously occupied by the Atlantico Sul Shipyard, whose acquisition process is already nearing completion. The total planned investment is $520m (BRL2.6bn).

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