Landmark Public-Private Partnership for Babitonga Bay Dredging Project Signed

The Santa Catarina state government, through Porto de São Francisco do Sul and Porto Itapoá, will sign a groundbreaking Public-Private Partnership (PPP) contract on Friday, 21st, at 2 p.m. for the dredging and deepening of the access channel to Babitonga Bay. The signing ceremony, held at Porto Itapoá, will be attended by Governor Jorginho Mello, marking a historic milestone for Brazil’s port and coastal infrastructure. During the event, the official bid notice will also be launched to select the company responsible for executing the project.

With an estimated investment of approximately R$ 300 million, the project will enable the docking and operation of vessels up to 366 meters in length—making it the first port in Brazil capable of accommodating ships of this size at full capacity. The initiative will enhance the competitiveness of the Babitonga port complex and drive broader economic development.

Beyond improving navigational safety and logistics efficiency, the project will also strengthen regional tourism and coastal protection. A key innovation is the use of dredged sediment for beach replenishment in Itapoá, expanding the shoreline—an unprecedented approach in Brazil.

A Model for the National Port System

The project, developed with key contributions from the State Secretariat for Ports, Airports, and Railways (Spaf) and the Secretariat of Finance (SEF), is the first of its kind in Brazil and is expected to serve as a model for the national port system. According to Spaf Secretary Beto Martins, “Santa Catarina was a pioneer in establishing a dedicated government structure for ports, airports, and railways. Now, we are once again leading the way by presenting this unique case of success, bringing together the public and private sectors to strengthen the Babitonga port complex—an essential logistics hub for the region’s sustainable development.”

The financing structure of the project relies on a public-private integration model, with Porto Itapoá covering a significant portion of the costs. “The return on Porto Itapoá’s investment will come from the increased cargo throughput generated by the arrival of larger vessels carrying more containers—ships that currently bypass Babitonga’s ports due to depth limitations,” explained Cleverton Vieira, president of Porto de São Francisco do Sul, the port authority overseeing Babitonga Bay.

Economic Growth and Environmental Innovation

By deepening the channel from 14 to 16 meters, the Babitonga Bay ports will be able to accommodate larger vessels, significantly boosting logistics efficiency and reinforcing the region’s role in global trade. Currently, the Babitonga Port Complex can handle container ships up to 336 meters long, with a capacity of 10,000 TEUs (twenty-foot equivalent units). The dredging project will increase this capacity to 16,000 TEUs.

Porto Itapoá President Ricardo Arten emphasized the project’s strategic importance for regional and state economic growth. “Modernizing the channel to accommodate vessels up to 366 meters in length will further boost Babitonga’s ports, which are already setting cargo throughput records, strengthening our position in global trade. The expanded operational capacity is expected to generate new direct and indirect jobs, as well as a positive economic impact on a national scale.”

The Port of Itapoá excels in the export of the following products, according to information obtained with the aid of Datamar’s DataLiner:

Itapoá Port Top Exports | 2024 | TEUs

Source: DataLiner (click here to request a demo)

The dredging work is expected to begin in 2025 and be completed by 2026.

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