Multilog to invest R$500 million in new dry port in Foz do Iguaçu

The logistics company Multilog is set to invest R$ 500 million in the construction of a dry port in Foz do Iguaçu, banking on the strength of Brazil’s and Paraguay’s agribusiness sectors and betting on the economic growth rebound in Argentina. The construction is set to commence in the first half of 2024.

Multilog operates a dry port in the same city, but it’s nearing its capacity limit. With the new infrastructure, the company will double its capacity to accommodate trucks, opening up opportunities for the agricultural sector in western Paraná, a significant producer of grains, as well as meats and other products. The old area will be returned to the Union once the new port is inaugurated.

Paraguay shares the same economic vocation, but its products rely on Brazilian ports for export. As for Argentina, international trade strengthens an alternative route to Buenos Aires via Foz do Iguaçu.

To Valor, the company’s president, Djalma Vilela, recalled winning the bid for the construction of the new facilities. The acquired area, covering 550,000 m2, is also located in the region of the triple frontier.

“The current area belongs to the Union. This new port is on our private land. It is designed to receive up to 2,000 trucks per day over 15 years, as both the logistics sector and the Federal Revenue Service anticipate increased international trade in the region,” he says. The R$ 500 million investment, according to Vilela, will be split into two phases. “In the initial phase, we will invest R$ 240 million.”

About 30% of the work will be funded by the company’s cash reserves, with the remainder through debentures. The company is one of the major operators of secondary customs clearance areas (areas designated for handling, storage, and customs clearance) and manages 14 terminals out of the 60 existing ones in the country.

Regarding storage, there are 4,200 m2 of covered area, including over 600 m2 of cold storage, with three docks for the storage of products requiring controlled temperatures. Due to the high flow of people and cargo diversion, the terminal will have 500 surveillance cameras, in addition to control scanners.

The city has been receiving infrastructure investments, primarily funded by the Itaipu power plant through tariffs. Among the works, highlights include the construction of the Brazil-Paraguay Integration Bridge, the East Perimeter Road, the Boiadeira Road, and the duplication of the Cataratas Highway (BR-469), boosting regional export and import activities.

Regarding the Integration Bridge, the project cost R$ 322 million and was intended to ease traffic congestion on the Friendship Bridge, which also connects Brazil to Paraguay. However, the bridge has been ready for over a year but has not yet been opened due to a lack of customs and inspection posts. The bridge is expected to be ready for use in July 2025, the same timeframe for the launch of the new port.

Local authorities celebrate the construction of the project. The president of the Foz do Iguaçu Business Association, Danilo Vendrúsculo, stated that with the new venture, the city will house the largest dry port in Latin America.

However, the region originally expected a multimodal dry port, capable of integrating road transport with other modes. The government of Paraná reported that it is working on the extension project of the Ferroeste rail line from Cascavel to Foz do Iguaçu and on the concession of airports. After the expansion works, Foz’s airport built the largest runway in the South of the country, but the concessionaire CCR needs to homologate the expansion.

Vilela said that the company is willing to make future investments to integrate the project with various modes, but stresses that it requires a state policy for promotion and incentives, as well as reducing bureaucracy for multimodal operation. Multilog’s concession can be extended for up to 35 years, but the businessman believes that concession contracts in Brazil could be for 50 years.

“We need stable contracts, legal certainty, and tenders in which entrepreneurs can recoup their investment,” he explains.

To Valor, Governor Ratinho Jr said that the goal is to turn Paraná into the logistics hub of South America. The state has been investing in the duplication of road corridors and has brought strategic projects of the Port of Paranaguá to fruition, which set a record for exports last year. “The arrival of this additional investment shows that planning has paid off. Not coincidentally, the Central Bank pointed out that Paraná was the state that grew the most in 2023, reaching 7.8%, a rate higher than China and three times more than Brazil itself.”

Source: Valor Econômico
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