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Brazil has emerged as a critical transatlantic cocaine launch pad, allowing drug money to transform the underworld and shift the country's role in the maritime drug trade at a rate that has startled anti-narcotics officials. Although the white powder is also trafficked into Europe by air, the main route used to smuggle the drug is still the maritime route from South America, especially taking advantage of the containerised trade in goods. The majority of the international drug trade for product manufactured in Colombia, Peru and Bolivia, passes through Brazilian ports, specifically the Port of Santos, one of the most important trafficking arteries to Europe, according to Europol. EMCDDA “We are aware of the main developments in Latin America with regards to cocaine production and trafficking, especially towards the EU,” says Tiberiu Stoian, scientific analyst at the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) - the reference point on drugs and drug addiction information in Europe. Located in São Paulo state, Santos is responsible for more than 30% of the Brazilian trade balance, connecting over 600 ports in 125 countries. With around 150m tons of products passing through it per year, local syndicates have infiltrated Latin America’s busiest and largest port, sending record amounts of cocaine on containerships bound for Europe, where it fetches premium prices of €35,000 ($40,000) per kg. Gangs of Brazil and the rise of the First Capital Command São Paulo is home to Brazil’s largest criminal organisation the First Capital Command (Primeiro Comando da Capital - PCC) which has become an essential player supplying Europe’s cocaine market, valued at more than $10bn, according to recent customs data on cocaine seizures and research studies on illegal drugs by EMCDDA and Global Initiative against Transnational Organized Crime (GITOC). Gains from European trafficking have enabled PCC, led by Marco Willians Herbas Camacho, also known as Marcola, to complete its transformation from a prison gang to a transnational player. “In recent years this cartel has strengthened relations both with the cartels in the producing region, in Colombia and Bolivia, and with European mafias. The Port of Santos is located in the state where the PCC originated and has its largest contingent, therefore being one of the preferred ports for the shipment of drugs,” Carlos Carvalhal, former inspector and member of the Port Guard at Santos Port and port facility security officer tells Splash Extra, adding that PCC has been expanding its reach to other Brazilian ports such as Paranaguá and Itajaí. The PCC, however, is just one of the 53 criminal factions operating in Brazil, according to the latest documentary by Record TV, the second largest commercial TV station in Brazil. This however does not include militias which are reportedly linked with the police and occupy over 50% of the territories occupied by armed groups in Rio de Janeiro. Rio-based Red Command (Comando Vermelho) is the country's oldest criminal organisation, as well as the second largest in Brazil. Despite being the first to arrive in Paraguay, where the organisation seeks out drugs and weapons and collaborates with PCC to eliminate competition, Red Command has no history of exporting cocaine to other continents. “Criminal organisations have structures that are very similar to companies, to multinationals. They have representatives in several countries, in several states. So, it's an absurd structure that needs to be fought hard by the police,” declares the superintendent of the Federal Police in Espírito Santo, Eugênio Ricas. Italian Mafia, Balkan Cartel and independent brokers Before going international, the PCC was already influential, controlling not only prisons but also criminal enclaves and criminal economies throughout the country. According to Brazilian media, citing confidential police sources, the PCC charges independent traffickers to use their corridor. However, Marcola and other top members have used their power over the routes, as well as their growing links to cocaine brokers and international mafias like the 'Ndrangheta, the Italian mafia from the southern region of Calabria, to begin moving their own shipments into Europe. “The ‘Ndrangheta long allowed cocaine leaving Santos to enter Europe through ports such as Rotterdam and Antwerp, and afterwards be distributed to Russian, Balkan and Moroccan groups. The ‘Ndrangheta also helped establish drug deals between the PCC and criminal groups in West Africa, which kept a part of the cocaine, in exchange for helping to transport larger loads onto Europe,” finds investigative reporting organisation Organized Crime and Corruption Reporting Project (OCCRP). According to an estimate by Italy’s parliament, the organisation may dominate more than 80% of the European cocaine trade, and its operatives have been detected at major ports, including Santos. Brokers, many of whom live in Brazil, continue to be the lynchpin of 'Ndrangheta operations, with their connections to suppliers and delivery networks, arranging sales through legal entities. One of the best examples was Nicola Assisi, who rose to prominence as a top cocaine broker before being apprehended in Brazil in 2019. He allegedly obtained cocaine from suppliers in Peru, Paraguay, and Brazil, and then hired the PCC to transport it to the port of Santos and ship it to Europe. The Italian mafia remains at the forefront of the cocaine trafficking expansion, but they are no longer the only European criminals establishing upstream operations. The Balkan wars of the 1990s allowed organised crime to thrive in the region. Europol reported earlier that Serbian organised crime groups (OCGs) are particularly prominent at the port of Santos. Criminal organisations from the former Yugoslavia, sometimes referred to collectively as the Balkan Cartel, continue to expand their position at the port of Santos, in addition to their presence at key staging points along the main trafficking routes. "These OCGs are involved in infiltration and corruption at key European international ports, and they mostly use containers and cruisers to traffic the cocaine into the EU," explains InSight Crime, an investigative organisation specialised in organised crime in Latin America, adding that there are no “kings” of the Balkan cocaine trade today, at least not any highly visible ones since the so-called Balkan 'Cocaine King,' Darko Šarić surrendered in 2014. He was subsequently put under house arrest at the end of last year. Nonetheless, the Italian mafia's generations of experience moving drugs and money and ability to innovate and adapt will ensure they remain among the most powerful criminal network in Europe, and also in Latin America. Cat and mouse game Carvalhal, who is also an administrator of the Brazilian port security portal Segurança Portuária Em Foco, claims the port of Santos is one of the safest in the country. He believes the Special Department of Federal Revenue of Brazil, most commonly referred to as Receita Federal, and the Federal Police have advanced a lot in the fight against trafficking, whether through equipment such as scanners and monitoring cameras, or through agreements with international entities. In the public area and in the public port, surveillance is carried out by the Port Guard linked to the Santos Port Authority, while in private terminals, surveillance is the responsibility of contracted security companies, he explains. Drug shipment seizures continue to be reported regularly at the port. According to the Receita Federal, more than 110 tons of cocaine have been prevented from being shipped at the port of Santos between 2016 and 2022. Most recently, it found nearly a ton of cocaine that would have been shipped from the Santos port. A total of 558 kg of cocaine was hidden in a shipment of coffee that was leaving towards Germany, while 399 kg were discovered in a container destined for the Antwerp port. Statistics compiled by the local media show, cocaine seizures at the country's largest port take place every eight days on average. However, this average becomes even more worrying when one takes into account the estimate that, for each cargo seized, another nine arrive at the country of destination. The PCC employs a variety of trafficking methods, which evolve over time in response to enforcement efforts and other factors. Container trafficking methods have evolved as well. For instance, the majority of seizures have been attributed to the so-called rip-on/rip-off, also known as a gancho ciego, rather than concealment within the container or cargo. According to a report on cocaine trafficking to Europe by the EMCDDA, corrupt officials and port employees facilitate this type of trafficking, and staff are involved. Rotterdam and Antwerp, Europe's largest seaports, are critical points for this type of trafficking. "The EU has recorded unprecedented quantities of cocaine seized in the last years, shipped from Latin America mainly via maritime routes. The available data indicates that port of Antwerp and Rotterdam are seizing the largest quantities of cocaine in the EU," observes EMCDDA’s Stoian. "Our latest short analysis on impact of COVID-19 on cocaine targeting the port of Antwerp revealed that large amounts of cocaine are shipped from Brazil towards Antwerp. This confirmed the previous analysis published in the EMCDDA–Europol joint publication EU Drug Markets Report." GITOC/InSight Crime The rip-on/rip-off method involves loading the consignment in the port of departure and recovering it in the port of arrival. The use of one or more corrupt employees at both ends is therefore a key element. However, smugglers have also reacted by contaminating previously inspected containers, cracking them open at the last possible moment before loading. The most secure method of evading security measures, however, is the method that US prosecutors believe was used for the MSC Gayane shipment: a drop-off, in which the containers are contaminated at sea after the ship has left port. GITOC/InSight Crime On the subject of the world’s largest containerline, Mediterranean Shipping Company (MSC), the Swiss-based company, recently put some land operations on hold in Brazil, fearful of drug cartels working their way into boxes bound for North America and Europe. The Santos Port Authority, including the top management, went radio silent when asked about the drug trafficking at the port, but replied to earlier inquiries sent by Splash Extra on the MSC situation, saying: "We were not notified of the decision because the affected operations are carried out outside the organised port. However, the Port Authority does not believe that this measure will impact the port, as the activities will certainly be carried out by the company's competitors." For the Brazilian Association of Retroport Terminals and Container Carriers (ABTTC), the MSC decision, even though it is temporary, should affect all terminals in Latin America. "ABTTC recognises the damage caused by the actions of drug traffickers and states that in recent years it has been making efforts with its associates to improve controls in Special Precincts for Customs Export Clearance (REDEX),” says Wagner Souza, executive director at ABTTC. Weaknesses Corruption is a major enabler of PCC cocaine shipments out of Santos port. The way port operations are structured and set up in Brazil makes them a soft target for groups like the PCC, which has substantial financial strength, local impact, and according to InSight Crime findings, a network of an estimated 11,000 members. One of Santos' major security flaws is that cargo can be stored for months in REDEXs, which are privately managed export storage facilities. There are over 45 of them in Santos alone, each managed by a different company. The PCC and other drug trafficking organisations are most likely exploiting a lack of overarching authority and poor information sharing among REDEX authorities. “In my opinion, what needs to move forward and makes combating trafficking difficult is the lack of information exchange between the various authorities working at the port, and this is for several reasons,” says Carvalhal, without going into details. News outlets in São Paulo report, corruption and bribery are common among officials and employees working at these facilities, as evidenced by the arrest of several officials working at REDEX facilities in Santos for allegedly providing PCC leaders with information on ship arrival dates, routes, and cargo types. Port workers and customs officials are also being accused of accepting bribes to facilitate the movement of drugs onto containerships. The suspicions that the police were also involved in drug trafficking became true when WhatsApp messages between several corrupt police officers were made public. The case involved around two tons of PCC’s cocaine, which was found in one of the storage facilities but was never reported. It is believed that the PCC themselves brought this to public attention. “The main factors that facilitate the shipment of drugs from the port are the number of containers handled and the networking of traffic. The PCC is infiltrated in various sectors of the logistics chain, which facilitates access to information about the cargo, the route, location, etc,” reveals Carvalhal. The wheel keeps turning The port of Antwerp remains a key entry point for cocaine trafficked from Santos to the EU, according to EMCDDA and Europol. From Antwerp, cocaine is frequently transported to the Netherlands by road for processing and cutting prior to redistribution to other EU destinations. An investigation by OCCRP, citing a Belgian police inspector, uncovered that indirect smuggling routes are frequently used to mask the original point of departure. It found that cocaine leaving Brazil often stops in West Africa, the Canary Islands, and Madeira before reaching Europe. In the early 2000s, the PCC was considered by the government of São Paulo to be a mere fiction and not a faction. Since then, Brazilian authorities have made high-profile arrests of individuals tasked with smuggling cocaine to Europe. But, like Marcola and the vast majority of PCC leadership, they either continued to work from inside the prison or were replaced. One of the major arrests involved Gilberto Aparecido Dos Santos, also known as Fuminho. He was one of Brazil's most wanted criminals until his arrest in April 2020. Despite his ties to the PCC leadership, he allegedly operated independently of Marcola, and had connections with the ‘Ndrangheta, arranging shipments to Europe. Nonetheless, the PCC has reportedly done an excellent job of recovering from the loss of valuable associates in the past. According to PCC experts, the deaths of Gegê do Mangue and Paca in 2018, in which Fuminho was allegedly involved, had no discernible impact on the group's drug trafficking activity in Brazil or abroad. For Marcola, who has spent the majority of his life in prison being moved between cells in the Brazilian prison system since the early 2000s, this does not appear to have seriously diminished his grip on power. Marcola is serving time in Papuda's federal prison. He was recently transferred to Brasília after being accused of commanding an attack against political and police authorities in São Paulo. As for South America’s busiest, Brazil’s infrastructure ministry is planning to auction the concession for Santos port. The auction is expected to take place at the end of 2022, with the signing of the contract in the first quarter of 2023. The concession period will be 30 years, extendable for up to five years.

How cartels took over South America’s top port, flooding Europe with cocaine

Splash Extra looks at how Brazil’s port of Santos has become the maritime hub for global cocaine trades.

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