DP World and Hapag-Lloyd forge 10-year strategic partnership at Brazil’s Port of Santos

By Admin

26 Sep, 2025

Global logistics leader DP World has entered a landmark 10-year agreement with German shipping giant Hapag-Lloyd to enhance operations at Brazil’s Port of Santos, the nation’s largest and most critical maritime gateway. This strategic partnership reflects both companies’ long-term commitment to the region and sets the stage for expanding their roles in South America’s fast-growing container shipping market.

Strengthening Ties in Brazil’s Busiest Port

The Port of Santos, located near São Paulo, handles around a third of Brazil’s total trade volume and serves as a key hub for exporting agricultural commodities, manufactured goods, and industrial raw materials. DP World has operated one of the port’s major terminals for years, investing in infrastructure upgrades and operational improvements.

Through the newly signed contract, Hapag-Lloyd secures reliable access to terminal services, while DP World reinforces its position as a trusted partner for major shipping lines in Latin America. The partnership ensures operational continuity and aligns both companies’ focus on efficiency, sustainability, and growth.

For Hapag-Lloyd, one of the world’s top five container shipping companies, the agreement provides a solid foundation to expand its footprint in Brazil. With trade volumes surging, particularly in soybeans, sugar, and meat exports, dedicated terminal support at Santos allows Hapag-Lloyd to strengthen its regional network and offer more reliable services.

Expansion Underway: Building for the Future

The agreement coincides with DP World’s ongoing expansion at Santos. In August 2024, DP World began extending its quay on the port’s left bank by 190 metres, scheduled for completion in August 2026. This will increase the total quay length to 1,290 metres, enabling the terminal to accommodate much larger container vessels.

The expansion includes the installation of advanced container handling equipment, such as new ship-to-shore cranes and yard management systems, projected to boost annual handling capacity to 1.7 million TEU (twenty-foot equivalent units) by 2026. These upgrades will make DP World’s Santos facility one of Brazil’s most modern and competitive private multipurpose terminals.

Sustainability and Efficiency at the Core

DP World is emphasizing environmental performance alongside capacity growth. The new equipment will feature energy-efficient technologies, while automated and digital yard operations will reduce emissions and improve safety. Hapag-Lloyd also prioritizes sustainability, investing in fleet modernization and alternative fuels. Together, the partnership ensures cargo moving through Santos benefits from greener supply chain practices.

Strategic Importance of Santos

The Port of Santos is a vital global trade artery. Brazil is the world’s largest exporter of soybeans, coffee, and orange juice, and a top supplier of beef, poultry, and sugar. Containerized exports from these commodities largely pass through Santos, making long-term terminal access essential for Hapag-Lloyd to strengthen its competitive position along South America’s east coast trade lanes.

The port’s connectivity to inland logistics networks, including railways and highways serving São Paulo’s industrial base, further enhances its significance for both imports and exports.

Industry Reactions and Wider Implications

Analysts view this deal as part of a growing trend in the shipping industry to secure long-term partnerships at strategic ports. With volatile freight rates and shifting supply chain patterns, guaranteed access to reliable terminals has become a cornerstone of corporate strategy.

For DP World, which operates over 90 ports and terminals worldwide, the agreement solidifies its reputation as a global partner of choice. For Brazil, foreign investment in Santos continues to modernize the logistics ecosystem, boosting the country’s global trade competitiveness.

Looking Ahead

As the expansion progresses, DP World and Hapag-Lloyd are expected to deepen their collaboration. Beyond containerized cargo, the terminal also handles breakbulk and general cargo, providing flexibility to meet diverse customer needs.

By 2026, Santos will be capable of accommodating the next generation of ultra-large container vessels, securing its position on key global shipping routes. This partnership represents more than a business agreement it is a strategic alignment that will shape trade flows between Brazil and the world. With DP World’s infrastructure investments and Hapag-Lloyd’s long-term commitment, the Port of Santos is set to become an even stronger driver of South America’s maritime economy.