CMA CGM acquires major stake in Brazil’s biggest port terminal operator

By Maritime Magazine
2024-09-23

France’s CMA CGM shipping and logistics group has announced a significant expansion of its operations in South America with the signing a definitive agreement to acquire a 48% stake in Brazil’s leading terminal operator, Santos Brasil Participações S/A.

“I am pleased that the CMA CGM Group has concluded this strategic agreement for the acquisition of Santos Brasil, which operates five terminals in Brazil, including the largest container terminal in the Port of Santos, handling 40% of Brazilian volumes, as well as a logistics company. This significant investment reflects our commitment to strengthening our partnership with Brazil and supporting its growth in the coming years”, said Rodolphe Saadé, CEO of CMA CGM Group.

Santos Brasil manages a portfolio of 8 assets on the Brazilian coast, including 3 Container Terminals, 1 Vehicle Terminal, 1 Liquid Bulk Terminal and 3 Logistic Facilities. These assets are located in the Ports of Santos, Imbituba, Vila do Conde, Itaqui and in Sao Paulo.

Over the 12 months ending June 30, 2024, the company generated BRL 2,549m of revenues (USD 458m) and BRL 1,284m of EBITDA (USD 230m).

Tecon Santos terminal is the largest container terminal in South America, with a strategic location in the Port of Santos and benefits from first-class infrastructure:

A long-term concession agreement until 2047.
A capacity of 2.5m TEUs, expandable to 3.0m in the near future.
3 berth slots enabling to handle 14,000 TEUs ships.
Most efficient terminal in the Port of Santos with excellent berth productivity.

The acquisition of Santos Brasil marks another significant milestone in CMA CGM’s global port development strategy, reinforcing its position as a leading global multi-user terminal operator with investments in approximately 60 terminals worldwide.

CMA CGM Group has been operating in Brazil for over 20 years, with currently 8 offices and over 10,000 staff members. The Group has developed its activities in Brazil organically as well as through the acquisition of Mercosul, a historic shipping line in the region.

Part of the CMA CGM Group since 2017, Mercosul Line is, today, key to the Group’s operating strategy in Brazil, with coastal shipping and intermodal solutions. CMA CGM and Mercosul Lines operate 10 weekly mainline services at 14 ports in the country, connecting major global destinations.

(Photo from CMA CGM of Port of Santos)