Port War: The U.S. and China Bring Their Trade War to the Santos Tender – Trade News | 18/03/26

The tender for the Tecon 10 mega container terminal at the Port of Santos has become a new front in the geopolitical dispute between the United States and China, placing Brazil in the dilemma of balancing its relationship with its main trading partner and the world’s leading power, as Washington openly expressed concerns over the participation of Chinese companies —seen as a risk in terms of sovereignty, security, and competition— and made it clear that it would not favor a Chinese-led concession. The project, which includes a 622,000 m² terminal and a 50% increase in operational capacity, involves a concession fee exceeding US$1.2 billion and major investments over 25 years, but the process is shaped by political and regulatory tensions, including a two-phase bidding structure that could exclude both existing operators in Santos and certain foreign shipping lines, particularly affecting the Chinese state-owned giant COSCO, while European carriers have also raised objections and may pursue legal action. In this context, the dispute goes beyond port operations and reflects a broader U.S. strategy to contain China’s expansion in key infrastructure across Latin America, turning Santos into a strategic node in the current global trade war. Link to Article