Companhia Siderúrgica Nacional (CSN), Brazil‘s largest steel industry, will begin operating nine new rubber-tired gantry cranes in 2023 and expects to acquire six new forklifts, enhancing its operational capacity at the Port of Itaguaí.

CSN indirectly owns almost all of TECON, which has a concession to operate the container terminal at the Port of Itaguaí for a 25-year term expiring in 2026, renewable for another 25 years.

As of December 31, 2022, approximately R$143.1 million of the concession cost was outstanding and payable over the remaining four years of the concession.

The Port of Itaguaí is located in the southeastern region of Brazil, with all major exporting and importing areas of the states of São Paulo, Minas Gerais and Rio de Janeiro within a 500 km radius. By 2020, this area accounted for 50% of Brazil’s GDP, according to IBGE.

TECON will continue to invest in the expansion project to increase its capacity by approximately 40%, which would make it one of the largest port terminals in Brazil, with a nominal capacity of 1 million TEUs per year.

This expansion project, which is under discussion with the regulatory agencies, includes an extension of the quay by 273 meters, with a resulting total length of 1,083 meters, the acquisition of two new ship-to-shore gantry cranes for larger container vessels, the acquisition of additional civil works and equipment for the yard, and the dredging of the access channel and the maneuvering dock.

Companhia Siderúrgica Nacional

In 2022, TECON moved 62,000 containers, 1.3 million tons of steel products, 42,000 tons of general cargo and 918,000 tons of solid bulks, compared to 120,000 containers, 705,000 tons of steel products, 110,000 tons of general cargo and 1 million 472,000 tons of solid bulks in 2021.

Favorable natural conditions, such as natural deep waters and a low rate of urbanization around the Port of Itaguaí, allow the operation of large vessels and also highly competitive prices for the services provided.

Following TECON’s investments in infrastructure and equipment, which increased capacity to 440,000 containers (660,000 TEUs) per year, further improvements were achieved from 2019 to 2021, which increased the level of service and productivity of the terminal, including maritime access and berths that achieved certification for 15.4 meters of draft, including tidal, which is the deepest on the east coast of South America, as well as the acquisition of new equipment.