The Evolving Port Landscape
A recent virtual meeting of WLG's Energy & Infrastructure Group, led by José Augusto of TozziniFreire, focused on why ports are regaining priority for governments, operators, and investors. While jurisdictions differ, the group consistently returned to three themes: ownership and control, national security, and the modernization pressures facing the sector.
José began by framing the scale of the industry: roughly 80% of global goods still move by sea, and demand is not slowing. In Brazil, port activity reached a record 1.3 billion tons in 2024. Despite the country's heavy reliance on road transport, policymakers are shifting toward waterborne logistics as a cleaner and more cost-effective long-term solution. With an estimated USD 10 billion in upcoming investment, Brazil reflects a broader global trend—ports are once again central to growth, climate targets, and trade competitiveness.
A significant portion of the discussion focused on governance models. While public service ports have historically dominated, most jurisdictions now lean toward the "landlord port” structure, in which the state owns the land but private operators manage the terminals. Fully privatized models exist but remain rare and politically sensitive. This feeds into one of the session's core questions: whether major international carriers should control the same terminals they rely on for shipping. Vertical integration has become increasingly common in the container sector, yet regulators remain divided on whether it enhances efficiency or undermines competition. In Brazil, the concession process for a major new terminal at the Port of Santos — designed to expand capacity and restructure competition — has become a test case for how governments balance competition, investment, and regulatory control in strategic port assets. Rules proposed to exclude existing terminal operators, many of which are controlled by global carriers, have triggered litigation and regulatory review. The underlying issue resonates across the network: how to balance investment and efficiency with fair market access.
National security concerns reinforced that point. Jeremy Blackshaw of MinterEllison offered Australia's experience with the Port of Darwin, sold in 2015 to a Chinese state-owned entity under a now-closed foreign investment exemption. The transaction remains politically contentious and prompted Australia to overhaul its rules for critical infrastructure. Both major political parties have since committed to removing the current owner—an example of how foreign participation in strategic ports can quickly evolve from a business question to a geopolitical one. Jeremy also outlined the broader Australian privatization trend, where long-term leases have become an accepted means for governments to raise capital and shift operational risk, even as regulatory and community scrutiny intensifies.
Modernization pressures rounded out the conversation. José highlighted rapid advances in port automation and the rise of unmanned vessels—innovations that offer efficiency but raise questions about technical standards, safety, and cybersecurity, especially where national security is already in play. Sustainability expectations are tightening as carriers push ports to align with net-zero goals. The group also discussed the Hong Kong Convention on ship recycling, now in force, which brings long-needed clarity to how obsolete vessels should be dismantled or repurposed.
Several members noted the introduction of new investment programs in their regions. Portugal recently announced a ten-year plan to launch 15 port concessions—both greenfield and brownfield—representing approximately EUR 5 billion in investment. New Zealand may also consider exploring privatization. Throughout the discussion, a consistent theme emerged: many jurisdictions are entering cycles of redevelopment, expansion, or regulatory reform, creating opportunities for clients across the WLG network.
While the meeting covered a highly technical sector, the underlying message was straightforward and clear. Ports sit at the intersection of trade, security, politics, and climate priorities, making them a reliable indicator of how infrastructure policy is shifting globally. For WLG firms, the sector offers a growing need for coordinated, cross-border support—spanning regulation, foreign investment, competition, ESG, and long-term concession strategy.