JBS in Talks to Enter Port of Itajaí Operation

Brazilian conglomerate JBS is reportedly in negotiations, through its subsidiary Seara, to acquire shares in Mada Araújo Asset Management Ltda, to operate the Port of Itajaí in Santa Catarina alongside an international shipowner. The confidential negotiations, ongoing for approximately two months, are being closely monitored by the National Waterborne Transport Agency (Antaq).

Although the information remains unofficial, neither JBS, Seara, nor Mada Araújo have confirmed or commented on the negotiations thus far. The potential transfer of the contract involves undisclosed values.

Reports indicate that Mada Araújo recently submitted an inquiry to Antaq regarding the transfer of quotas. The company, which assumed control of the port at the beginning of the year under a temporary concession contract, has yet to reactivate operations.

Federal Deputy Carlos Chiodini, who met with Minister of Ports and Airports Silvio Costa Filho, revealed to the press on Tuesday (7) that the negotiation is known to the Ministry, and the minister intends to visit Itajaí if the agreement is finalized.

The chart below compares container exports and imports at the Port of Itajaí from January 2019 and December 2022, the period in which container operations began to dwindle at the port. The data is from DataLiner.

Container exports and imports | Port of Itajaí | Jan 2019 – Dec 2022 | TEU

Source: DataLiner (click here to request a demo)

The government views the potential deal as a solution to the impasse in Itajaí, which has been without container shipments for a year and a half since the lease agreement with APM Terminals expired in December 2022, resulting in the cessation of regular ship lines.

Speculation surrounding JBS’s possible involvement in the Port of Itajaí operation has generated significant anticipation within the port industry. As the world’s largest food company, its subsidiary Seara already operates in Itajaí at the Braskarne port terminal.

Reactivating the Port of Itajaí will necessitate investment in equipment and the completion of customs processes. If the negotiations are confirmed, there is optimism that the terminal could resume receiving ships between July and August of this year.

Source: NSC Total

Click here to read the original news text: https://www.nsctotal.com.br/colunistas/dagmara-spautz/jbs-pode-entrar-de-cabeca-na-operacao-do-porto-de-itajai

Sharing is caring!