After Investing R$650 Million, the Port of Paranaguá Calls for Railway Expansion to Avoid Losing Competitiveness

The management model adopted by the Port of Paranaguá and the logistics challenges facing Brazil’s agribusiness sector were the focus of discussions during the launch of the Agroportos Movement, held on Thursday (25) in Curitiba. During the event, Portos do Paraná CEO Luiz Fernando Garcia presented measures implemented in recent years to improve the port’s operational efficiency and emphasized that infrastructure investments are essential to reducing the country’s so-called “Brazil Cost.”

Garcia, who also serves as president of the Brazilian Association of Port and Waterway Entities (Abeph), participated in the panel *”Regulation, Legal Certainty, and Port Efficiency in Southern Brazilian Ports,”* moderated by IBI President Mário Povia. He highlighted successful initiatives implemented at Paraná’s ports over the past several years that could serve as a model for other ports across Brazil.

The Port of Paranaguá is the first port in Brazil to have 100% of its port areas under lease agreements, providing legal certainty for terminal operators.

“Through our concession program, we have become the only port in Brazil with 100% of its leasable areas fully regularized. We have also awarded the concession for the access channel and are about to deliver the largest port infrastructure project in the country—the Moegão rail yard. More than R$650 million has been invested in a project that is now 95% complete,” Garcia said.

The regularization of leasable port areas carried out by Portos do Paraná since 2019 has provided the legal certainty discussed during the panel. Through public auctions held on Brazil’s stock exchange (B3), companies have gained the confidence to invest, backed by robust contracts that protect both the port authority and terminal operators.

Prepared for Future Growth

Speaking about sustainability, Garcia noted that the Port of Paranaguá became the first public port in Brazil to earn the international EcoPorts certification, the world’s leading environmental management recognition for ports.

According to Garcia, once the ongoing projects are completed, the Port of Paranaguá will be ready to handle future increases in cargo volumes and production.

“Paraná has already awarded its highway concessions, with R$90 billion set to be invested under the current contracts. The expiration of the Southern Railway Network concession in 2027 gives us an opportunity to engage with the rail sector, which is essential for the Moegão project to operate at full capacity,” he said.

Asked about the broader issues that should be addressed by the Agroportos Movement, Garcia pointed to the high logistics costs of transporting cargo to the port. He argued that addressing these bottlenecks is essential to improving efficiency.

“Companies need commercial and operational advantages. Once those advantages disappear, they will move their business to other ports,” he warned.

Alex Sandro de Ávila, National Secretary for Ports at Brazil’s Ministry of Ports and Airports (MPor) and chairman of the Board of Directors of Portos do Paraná, also participated in the panel. He praised the management of Portos do Paraná, highlighting its redevelopment of port areas and successful lease auctions, which have increased the port’s investment capacity.

“Southern Brazil continues to play a leading role in grain exports because it has highly specialized and well-prepared ports. We are seeking greater synergy and coordination, which has already proven successful in the South and serves as an excellent example as we develop growth projects in Brazil’s North and Northeast regions,” Ávila said.

Source: O Presente Rural

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