Brazil launches feasibility study for a 2nd port terminal in Natal

Privileged location on the corner of South America, one of the closest points to the African and European continents. These geographic elements give Rio Grande do Norte vast potential in terms of logistics. Some issues, however, harm the arrival of vessels at the Port of Natal since they need to pass under the Newton Navarro bridge on their way to the terminal. This is what the French company CMA-CGM used to do, but now, with the purchase of larger ships, it will no longer conduct operations in the port of Natal, as the new vessels will not be able to enter it.

According to the state-run Companhia das Docas do Rio Grande do Norte (Codern), the exit of CMA-CGM from the Port of Natal will cause a drop in planned revenue equivalent to 13% for 2023. Still, this situation may be overcome in the coming years as the National Transport Confederation (CNT) hired a company to conduct a Technical, Economic, and Environmental Feasibility Study (EVTEA) for Porto Potengi, which would be on the opposite bank to the current port of Natal.

CNT’s Eudo Laranjeiras commented that the project currently under study is robust, with a projected entry point in the North Zone and connection to the railway that heads to São Gonçalo do Amarante in the metropolitan zone of Natal. “A project has already been sketched, and it isn’t limited to the port itself; it includes an entrance through the North Zone and a rail connection to São Gonçalo. It is a large project. CNT took part in it, so we may conduct this feasibility study and find out if our economy can sustain a larger port by attracting enough goods that we would buy and sell at the port. This is the economic feasibility study,” he said.

However, it is unclear whether the current Port of Natal will continue to operate alongside the new terminal. Eudo Laranjeiras was asked if the capital of Rio Grande do Norte would have two terminals. Still, he was unsure as everything depends on the technical feasibility study, which will begin in March. “Actually, I believe so. The new one is for commerce, for business. I’m unsure if the old one would be for the Navy, something else, or tourist ships. I’m sure the other port would be brand new,” he explained.

Please see below a chart with Port of Natal’s containerized exports between Jan 2019 and Jan 2023. The data is from DataLiner.

Container exports – Port of Natal | Jan 2019 – Jan 2023 | TEUs

Source: DataLiner (click here to request a demo)

Sectors of the economy

This agenda piques the interest of various Rio Grande do Norte (RN) economy sectors. Among them are trade and services. According to Marcelo Queiroz, president of the state’s trade federation, the structural deficiencies of the existing port terminal in Natal directly affect local competitiveness.

“Implementing new equipment, which will fill the current gaps, is very positive for us. It is worth noting that the Port of Natal ended the year with a 6.63% increase in movements, including shipments and landings, but this figure could be much higher, and we believe it should be with a new port complex,” he added.

For Queiroz, the state’s economic development passes directly through the terminal in its capital city. “Certainly, this will have positive effects on the entire production chain, from industry to commerce, in addition to being a way to implement intermodal logistics, boosting economic development, expanding new businesses and, with that, generating more employment and income across the state,” he projected.

Economist Robespierre Do Ó said that investments infrastructure-building projects are crucial to boosting the economy. “RN could become a logistics hub. There are enough attraction points for that. But the state needs to develop a more precise policy. For example, what does the Secretariat for Economic Development suggest? There’s an airport in São Gonçalo that is currently in deficit. The company that operated there has quit the asset. There’s the Port of Natal, which receives one ship per month. There is a railroad. What’s the point of investing in infrastructure? Making the logistics work and, preferably, integrating all four transportation methods: air, road, rail, and port. By doing so, we may be able to attract new investments,” claimed him.

In September last year, former senator, now president of Petrobras, Jean-Paul Prates, visited the Federation of Industries of the State of Rio Grande do Norte (Fiern) to present a project for the port complex called Porto Potengi. According to Prates, it was a conceptual proposal for port logistics. At the time, Fiern’s president, Amaro Sales, stated that the initiative was important for strengthening the state’s productive sector and noted that the Federation could contribute through MAIS RN, the Federation’s strategic planning branch. In addition, at the time, Prates commented that an interconnection was possible between the port and the airport.

No exit route

Responsible for 62.5% of Rio Grande do Norte exports, the agricultural sector has extensive participation in the state economy. According to the Federation of Agriculture, Livestock and Fisheries of the State of Rio Grande do Norte (Faern), the presence of agribusiness in the state’s exports is made up mostly of fruits – such as melon – and fish. However, the sector lives without knowing how it will export the products of the 2022/2023 harvest, which ends in August 2023. Even with government support, the answer is still unknown.

Last year, the French company CMA-CGM announced it would stop calling at the port terminal in Natal. “What does it means? The state will have no ships to take the commodities abroad for several reasons. First, the [Newton Navarro] bridge limits the entry of large vessels, and nowadays, all companies are looking for efficiency. It’s one thing for a ship to transport 500 containers; it’s quite another for a larger ship to transport 1,000 containers; the cost decreases. As a result, the other states absorb this demand,” said José Vieira, president of Faern.

According to Vieira, the Port of Natal plays a relevant role in European fruit exports. Even other states opt to send their produce abroad from the RN capital. “The port of Natal is specialized in exporting fruits. So, its logistics and operations are much more efficient, and it is the closest port to Europe. For example, Petrolina [in Pernambuco] prefers to export through the port of Natal because the fruit arrives faster in Europe than if sent through the port of Suape, in Pernambuco. In addition, all the fruits from the São Francisco valley, in Paraíba, some from Pernambuco and Bahia, travel to be exported here in RN,” he explained.

Source: Agora RN

To read the original report, please visit: https://agorarn.com.br/ultimas/cnt-realiza-estudo-de-viabilidade-para-segundo-terminal-portuario-em-natal/

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