Brazil’s São Francisco Port Unveils R$340 Million Infrastructure Plan, First PPP Dredging Project with Beach Replenishment

Two major infrastructure projects, set to begin in 2025, will enhance logistics and improve access to the Babitonga Bay Port Complex in northern Santa Catarina. These projects include the deepening and widening of the bay’s access channel and the construction of a third lane on BR-280 leading to the port — the latter to be funded with the port terminal’s resources.

Details of the projects were presented by Cleverton Vieira, President of the Port of São Francisco do Sul, during a debate hosted by the Federation of Industries of the State of Santa Catarina (FIESC) on June 17 in Florianópolis. The event focused on urban mobility along BR-280, the main route to the port complex.

“By 2026, with the channel deepened to 16 meters, the Babitonga ports will be able to accommodate larger vessels of up to 366 meters in length, at full capacity,” said Vieira, noting that the bidding process is already underway and the winning company will be announced on July 4.

The R$ 324 million dredging project is unprecedented in two ways: for the first time in Brazil, a public port has partnered with a private terminal for a project of this nature. Additionally, part of the dredged material will be used to replenish seven kilometers of beach in Itapoá, which has suffered significant coastal erosion in recent years.

Vieira also detailed the R$ 12.4 million investment in a third lane on BR-280 at the port entrance, funded by the port itself, aimed at easing the flow of truck traffic.

During the event, Alysson de Andrade, regional superintendent of Brazil’s National Department of Transport Infrastructure (DNIT) in Santa Catarina, praised the port authority for making the third lane project viable.

The event also featured Ivan Amaral, State Secretary for Ports, Airports, and Railways (SPAF), and Lucas Sampaio Ataliba, Director of Modal Integration at SPAF.

See below a historical overview of long-haul cargo movement at the Port of São Francisco do Sul starting from January 2022, measured in tons. The chart was prepared using DataLiner data:

Cargo throughput at the Port of São Francisco do Sul | Jan 2022 – Apr 2025 | Tonnes

Source: DataLiner (click here to request a demo)

Financing

The dredging project will be carried out under a Public-Private Partnership (PPP), with the public Port of São Francisco contributing R$24 million. In comparison, the private Port of Itapoá will invest R$300 million. The private investment will be reimbursed in installments by 2037, around 10 years after the project’s completion.

Reimbursement to Itapoá will be funded by additional port tariffs generated from the expected increase in vessel calls and cargo volume resulting from the channel deepening.

Approximately 15 million cubic meters of material will be removed during the dredging of the access channel to the Babitonga Bay Port Complex.

Of this, approximately 6 million cubic meters will be used to replenish the beachfront in Itapoá, located adjacent to Babitonga Bay — a region affected by erosion.

This will be the first time in Brazil that dredged sediments from a port project are used to expand a beach.

Instead of disposing of the high-quality sand at sea, the material will be used to benefit the beaches of Itapoá, promoting tourism in the region.

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