Brazil Issues Resolution to Boost Naval Sector, Expand Merchant Marine Fund Benefits

Resolution CMN No. 5,189, dated December 19, 2024, was published in the Official Gazette on Tuesday, December 23, 2024. It introduces pivotal changes to the regulations governing the use of resources from the Merchant Marine Fund (FMM), aiming to modernize the naval sector and boost its competitiveness through regulatory enhancements.

Key Changes Introduced

The resolution implements several significant changes:

• Elimination of the minimum interest rate for financing conditions.
• Extended amortization periods for repair and drydocking projects.
• Introduction of two new rates: the Fixed Rate and the Fixed Rate for Micro and Small Enterprises (PMPE), as established by Law No. 14,937/2024.
• Expansion of financing eligibility to include platforms, platform modules, and dismantling projects.
  Streamlined processes to enhance competitiveness for domestic shipyards and the broader naval sector.

These updates result from a collaborative effort led by the Ministry of Ports and Airports and the Ministry of Development, Industry, Commerce, and Services. The initiative brought together a working group of public and private stakeholders, including BNDES, Transpetro, Petrobras, Sinaval, Abem, ABDI, Tenaris, Abimaq, Abespetro, CONTTMAF/CNM-CUT, Dieese/CNM-CUT, and Firjan.

Positive Impact on the Naval Industry

Fernando Pimentel, General Coordinator of Development at the Ministry of Ports and Airports, highlighted that the resolution crowns a successful year for the naval industry, which shows clear signs of recovery. “This is evidenced by over R$ 5 billion in contracts signed this year. By improving access to the Merchant Marine Fund and enhancing its attractiveness, we already know some projects are awaiting this resolution before moving forward. This should lead to another record year for the sector,” he stated.

Strengthening the Naval Sector

The new resolution underscores the government’s commitment to Reducing logistics costs in Brazil, Strengthening the naval sector’s supply chain, and Promoting the decarbonization of national transportation. The Merchant Marine Fund can finance up to 90% of the project value, with financing conditions varying based on the percentage of national content and the type of vessel. These parameters are defined in the resolution itself.

How to Submit Requests

To learn more about submitting proposals to the Merchant Marine Fund Development Committee (CDFM), visit the official website of the Ministry of Ports and Airports here.

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