News / HMM says it will join the race for Brazil's Tecon 10 terminal

South Korea’s flagship container line, HMM, has told The Loadstar it has its sights on the new Tecon 10 mega-terminal in Brazil’s Santos port.

A spokesperson for HMM said: “We’re considering participating in the bid for the Tecon 10 terminal. This potential investment aligns with our strategic goal of expanding our business.”

HMM already operates terminals in South Korea’s Busan port, as well as in Europe and the US, and plans to invest KRW4.2trn ($3.04bn) to secure terminal assets by 2030. CEO Choi Won-hyok said he saw synergies between container shipping and handling.

In June, the Brazilian government launched tenders for the 25-year concession for the Tecon 10 project, which is expected to commence operations in 2027 and can accommodate 24,000 teu ships.

To reduce the ‘oligopolistic influence’ of shipping lines with substantial terminal operations, liner operators already operating facilities in Santos, South America’s largest port, are barred from entering the first round of the Tecon 10 tender. They can participate in a second round, held if no bidders are selected in the first.

Brazilian courts threw out Maersk Line’s legal challenge to this restriction in July, allowing HMM and other interested parties to participate. MSC and CMA CGM, the world’s largest and third-largest shipping lines, also operate terminals in Santos.

It is estimated that the successful bidder will need to invest nearly $1bn over the 25-year concession, covering the port’s leased and public areas, including necessary dredging. Tecon 10’s potential annual handling capacity of 3.5m teu would boost Santos’s total capacity by 50%.

Santos Port Authority hopes complete the bidding process in December.

Meanwhile, HMM, which operates a terminal in Spain’s Algeciras port with CMA CGM, in June confirmed plans to develop the first phase of the southern site of the facility, expected to be completed by 2028, with an annual throughput of 2.1m teuThe second phase would eventually boost throughput to 2.8m teu.

The total investment is €150m ($175m), with HMM paying €35m, the remainder to be raised through external borrowings with CMA CGM.

In January, HMM agreed with India’s Jawaharlal Nehru Port Authority to develop the Vadhvan mega-port by 2040. The nine-terminal gateway can process 23m teu annually.