Brazil ports minister backs use of Merchant Marine Fund for railways in port zones

Brazil’s Minister of Ports and Airports (MPor), Silvio Costa Filho, on Wednesday (1) defended the use of resources from the Merchant Marine Fund (FMM) to finance railway projects operating within the polygons of Brazilian ports. Speaking at the opening of the 9th edition of Brasil nos Trilhos, an event focused on cargo transport by rail, the minister projected an expansion in the outflow of Brazilian production through ports, supported by investments in railways that connect to port areas.

“Today, 70% of the Merchant Marine Fund goes to navigation, and we have already signed nearly R$25 billion for shipping and R$10 billion for the port sector. But the fund has enough resources to also support railway projects within port polygons. This is a way to encourage railways operating in Brazilian ports,” he said, adding that a proposal is being prepared to present to President Luiz Inácio Lula da Silva. The plan would also require authorization from the FMM’s board, chaired by MPor’s Secretary of Navigation.

“With railways boosting port operations, we will increase the outflow of Brazilian production by 30%,” Costa Filho said. He highlighted the R$1.7 billion investment announced this week in Amazonas, also backed by the FMM, for the construction of 188 barges. Since 2023, R$70 billion has already been prioritized for projects via the FMM—three times more than the total approved between 2019 and 2022.

The minister also emphasized the importance of allocating FMM resources to the waterway sector, integrating it with rail and road infrastructure to ensure a more efficient logistics network. “We will launch the first waterway concession, which is the Paraguay waterway, strategic for the development of South America,” he stated. “When we operate the waterway, we reduce logistics costs by 40%. This is directly tied to sustainability, since every 10 barges remove about 1,000 trucks from the roads,” he added.

Source: Ministério dos Portos e Aeroportos

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