Stop press: Post election implications for STS 10 Santos

Against all the odds Luiz Inácio Lula da Silva has won the bitterly fought Presidential election in Brazil and it could be bad news for Maersk and MSC (bidding for the US$1.29 billion STS 10 Santos Container Terminal) and conversely good news for Chinese bidders, Cosco and China Port Holdings (who already operate a terminal in Paranaguá, south Brazil).

Lula fought off the challenge of Flavio Bolsonaro, son of jailed former president Jair Bolsonaro, with close to 52% of the vote, compared to just over 48% for the defeated candidate. This was despite losing the initial round of voting – the first time there has been such a turnaround since democracy was restored to South America’s biggest country in 1988. However, political life will be far from easy for President Lula, starting his fourth term in office at the age of 81, as, following recent elections, Congress is dominated by right-wing parties.

“Lula has won but it will be difficult for him to get much of his legislation passed with so many senators and federal deputies of a right-wing persuasion,” notes one Sao Paulo based shipping agent. “He will have to make deals with the non-committed and Lula is nothing if not pragmatic so we can expect a lot of horse trading.”

This story was originally published by Port Strategy. Read the full story at Port Strategy →