Maritime Market Demands Port Expansion Streak in Brazil

The quest to increase port capacity isn’t exclusively a hot topic in Brazil. Expanding cargo space at Brazilian ports is essential to accommodate the growing throughput, making the country more competitive internationally and more attractive to investors. Port industry representatives argue that the Federal Government must expedite this expansion.

Executives told A Tribuna that it is urgent to avoid congestion and boost terminal efficiency. The director of the Port of Suape in Pernambuco, Márcio Guiot, explained that port congestion leads to cargo being diverted elsewhere, which incurs additional costs.

“This lost competitiveness can exclude us from certain segments or make us lose relevance in some activities. Having the right infrastructure is crucial,” Guiot said.

The strategy to enhance Suape’s competitiveness is to advertise itself as a viable export route for Brazilian farming goods, which accounted for less than 1 million tonnes of the 24 million tonnes total throughput in 2023.

Although Suape’s occupancy rate is below 60%, the port plans to expand its berths to attract more ships. A second container terminal is also in the works, as the port has operated with only one terminal since 2001.

“We reckon this is important to increase capacity and create competition,” Guiot added. The second terminal is expected to be operational by 2026.

Portonave

For Osmar de Castilho Ribas, the administrative director of Portonave in Santa Catarina, Brazilian ports must adapt to accommodate larger ships.

“As Brazil becomes capable of fully receiving 366-meter ships, the country will see a boost in productivity. And, as in any economic sector, productivity means increased efficiency and cost reduction,” Ribas said.

To increase port capacity, Portonave will undergo expansion through quay enhancements. The project, which involves a R$ 1 billion private investment, aims to accommodate vessels up to 400 meters in length.

Government Highlights Synergy

According to National Ports Secretary Alex Sandro de Ávila, Brazil’s cargo throughput has grown exponentially in recent years. In 2023, the country shipped in and out of its ports 1.3 billion tonnes of cargo. “That’s a huge volume. Since we need our ports to handle that, expansion is necessary,” Ávila noted.

According to Ávila, a strong synergy between the public and private sectors is necessary to achieve this goal. One of the initiatives mentioned by the secretary was the first port lease auction of 2024, held last week by the Federal Government. Five areas were leased: REC08, REC09, and REC10 in the Port of Recife (PE), RDJ06 in Rio de Janeiro, and RIG10 in the Port of Rio Grande (RS).

The secretary also mentioned current plans for 35 block auctions by 2026, with two more scheduled for this year. “This will bring over R$ 14 billion in investments to improve the country’s port infrastructure,” Ávila stated.

He also noted the development of Private Use Terminals (TUPs) in Espírito Santo and Piauí, as well as a grain terminal in Santa Catarina, which is in an advanced stage of construction.

Paraná

The secretary also mentioned three projects in the Port of Paranaguá area in Paraná. One will focus on containers, while the other two will be multipurpose terminals, with investments totaling around R$3 billion.

“When we combine the government’s efforts to develop new opportunities at public ports through lease auctions with private sector initiatives, we see significant synergy in all these efforts. This is how we will expand our port capacity,” the National Ports Secretary affirmed.

Source: A Tribuna

Click here to access the original news report: https://www.atribuna.com.br/noticias/portomar/setor-portuario-pede-aumento-da-capacidade-no-brasil-1.432151

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