Brazil’s Ceará Eyes Integration into the Arco Norte Logistics Network

Ceará is solidifying its position as a rising player in Brazil’s port sector, with the potential to transform cargo throughput at its berths through integration into the Arco Norte—a strategic logistics network linking key ports across the North and Northeast regions.

This network is a vital export passageway for agricultural goods from these regions and Brazil’s Midwest, especially soybeans, corn, and other bulk commodities. Its goal is to become Brazil’s most competitive export route for commodities.

Ports within the Arco Norte include São Luís-Maranhão, Salvador-Bahia, Santarém-Pará, and Itacoatiara-Amazonas.

For Gabriela Costa, Executive Director of the Association of Private Port Terminals (ATP), Ceará’s ports present a promising logistical solution for the network.

“It’s natural for Ceará’s ports to emerge as attractive logistical alternatives. Depending on the cargo flow dynamics from Arco Norte, using Ceará’s ports could be a viable solution,” Costa noted.

Speaking at Expolog 2024 in Fortaleza, Costa emphasized that integrating Ceará into the Arco Norte network represents a significant business opportunity for the state. According to the National Waterborne Transport Agency (Antaq), the Arco Norte was responsible for 40% of Brazil’s soybean and corn exports from January to August. Including other cargo types such as containers, minerals, and fuel, the region handled 32% of the country’s exports during the same period.

According to the Amazon Basin Port Terminals and Transshipment Stations Association (Amport), which plays a key role in fostering this growing logistics hub, the network is expected to reach an installed capacity of 100 million tonnes of grain within the next five years.

Mucuripe Port Eyes Integration

The Port of Fortaleza, located in the Mucuripe district, has expressed interest in joining Arco Norte. Lucio Gomes, CEO of Ceará State Port Authority, emphasized that investments are underway to prepare the terminal for commodity exports.

Here’s a chart that reveals the top ten most exported products recorded for the Fortaleza Port in 2024. The data comes from DataLiner.

Top Cargo Fortaleza Port | 2024 | WTMT

Source: DataLiner (click here to request a demo)

“Modernizing the port’s infrastructure is part of our company’s strategic plan. These efforts aim to provide optimal conditions for our partners to increase cargo throughput. The company is investing substantially in consulting and project development to secure this integration,” Gomes stated.

However, Pecém Port, Ceará’s largest in terms of cargo throughput, has no official negotiations regarding Arco Norte integration at this time.

The Arco Norte network currently includes five public ports and several private terminals.

Cutting Costs is a Top Priority

The Arco Norte’s primary objective is to reduce logistics costs, explains Augusto Fernandes, a customs clearance expert with JM Negócios Internacionais.

“This logistics chain combines waterway, road, and port transportation, offering an alternative to the Port of Santos, which has the highest costs in Latin America,” Fernandes said.

The inclusion of Northeast ports in the Arco Norte, more recently compared to their Northern counterparts, is strategically advantageous due to their proximity to key commodity markets in Europe and Asia.

Fernandes stressed the importance of boosting the network’s competitiveness to lower the costs of Brazilian goods.

“China has already established a port in Latin America, in Peru, which could be part of a larger plan to consolidate logistics around its own hub. Such a development wouldn’t benefit Brazil, as it would shift the cost advantages to another country,” Fernandes warned.

Source: Diário do Nordeste

More information available at: https://diariodonordeste.verdesmares.com.br/negocios/o-que-e-arco-norte-e-por-que-e-importante-para-o-ceara-ingressar-nele-1.3589384

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