Capuaba Port Railway Overhaul Promises 5 Million-Tonne Cargo Surge

The revitalization of the railway system within the Port of Capuaba, in Vila Velha, is expected to increase cargo throughput at the terminal by up to 5 million tonnes.

This information was shared on Monday (23) during the inauguration of infrastructure improvements at the Vitória and Vila Velha port complex, attended by the Minister of Ports and Airports, Silvio Costa Filho, Governor Renato Casagrande, and Vice Governor Ricardo Ferraço.

The upgraded rail system is projected to be operational by October, creating a new logistics route connecting Brazil’s Midwest region, with tracks running through Goiás, Minas Gerais, and Espírito Santo.

According to Minister Silvio Costa Filho, these works are essential for enhancing the competitiveness of Espírito Santo’s port activities. “We are here today at this port, which has become a national benchmark, to deliver a series of projects and investments totaling R$180 million. These upgrades are vital to boost the port’s competitiveness, ensuring that both logistics and operations continue to grow,” said the minister.

He also noted that port activities in Espírito Santo experienced a 30% growth in the first half of 2024, with the container sector seeing an even greater increase of 33%. The railway system, he added, will further enhance the flow of domestic production through the state’s ports.

Despite his optimism about Vports, the only private port in Brazil, Filho emphasized the importance of balancing public and private services, ruling out any imminent privatization of other ports.

“No. At this point, we have six dock companies operating six public ports, and here’s an important fact: these public ports saw an 18% growth in the first half of the year. For instance, the Port of Santos is expected to grow by an average of 10% this year. This demonstrates the importance of balancing both public and private agendas,” he added.

Boosting Productivity and Addressing Logistics Challenges

According to VPorts, the new rail infrastructure could significantly increase cargo throughput at the port, from approximately 9 million tonnes in 2024 to 16 million tonnes by 2029. Initially, the system will be used to transport fertilizers and soybean meal.

“This expansion allows us to increase cargo handling by 80%, especially for bulk cargo like soybean meal and fertilizers. The coffee sector will also benefit. There are several improvements underway,” said Gustavo Serrão, CEO of VPorts.

Serrão also mentioned that the coffee and ornamental stone sectors would see improvements as part of these port upgrades.

This announcement comes just over two months after an open letter from business leaders in these industries, decrying what they referred to as a “logistics blackout” affecting Espírito Santo‘s port services.

“We are closely engaged with these sectors, as they are our clients. We’ve sought alternative solutions, such as bagged coffee and block granite. We recognize that the logistical challenges today are more national than specific to the Port of Vitória,” Serrão stated.

Dredging Services

The revitalization works across the ports have totaled R$180 million in investments. In the second phase of renewal projects, dredging services are planned for the ports of Vitória and Barra do Riacho, located in Aracruz.

The dredging project involves an investment of R$26 million, with 280,000 cubic meters of sediment to be dredged from Vitória and 350,000 cubic meters from Barra do Riacho.

“We are conducting the final navigation tests to validate our access channel without restrictions. This is a maintenance dredging project to ensure we continue operating at full capacity. In Barra do Riacho, as mentioned, the area is growing, and we are conducting studies to explore how to best utilize the 500,000 square meters available,” Serrão said.

In addition to these works, Vports also announced that the commercial pier at Warehouse 2, located at the Port of Vitória, will be occupied by Vix Shore.

Expanding Container Services

Governor Renato Casagrande highlighted that future steps for Espírito Santo’s port services would focus on expanding the Midwest corridor and strengthening import and export ties with the region.

Casagrande also emphasized the need to expand container operations at the port.

“The minister is supporting us in expanding container operations at our port. We currently have only one operator, and it’s crucial to increase this capacity, either through the current operator or a new company. This is particularly important for the export of coffee and ornamental stones. It’s a significant step for us to coordinate with the ministry and increase our export capacity for these products,” the governor said.

Source: Folha de Vitória

Click here to read the original reporting: https://www.folhavitoria.com.br/economia/noticia/09/2024/ferrovia-pode-aumentar-volume-de-cargas-no-porto-de-capuaba-em-5-milhoes-de-toneladas

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