Brazil is finally making progress on the long-delayed development of a new container terminal at the Port of Santos. Earlier this week, the Ministry of Ports and Airports instructed the state-owned logistics company Infra SA to create a concession model for the STS10 terminal. This project has been in the works since 2019, originally pushed by former President Jair Bolsonaro, but the current administration under President Lula da Silva had previously shelved plans to privatize the port’s administration. Now, MPor is revising the earlier plans and gearing up for an auction in 2025. The new model will add an extra berth, increasing capacity at Brazil's busiest port by 50%. Currently, the Port of Santos handles about 6 million TEU (twenty-foot equivalent units) annually, and with the new terminal, that number could jump to 9 million. There are even plans for a new passenger terminal within the 601,000 square meters set aside for STS10. However, there’s some controversy brewing. Part of the area designated for the STS10 terminal is currently occupied by a multipurpose terminal operated by Ecoporto, and there are concerns about whether the space will shrink if the concession contract is renewed when it expires at the end of the year. This auction for STS10 marks a shift in the government’s approach to port privatization. Just last month, CMA CGM acquired a 48% stake in Santos Brasil, a major terminal operator that runs the largest container terminal at the Port of Santos, Tecon Santos. It’ll be interesting to see how all these developments unfold.