Port of Itajaí no longer has money to pay for dredging

The Itajaí and Navegantes Port Complex faces a pressing issue: a lack of funds for essential dredging operations in its access channels and maneuvering basins. This concern has escalated to the federal level, prompting discussions between port authorities and senior officials from the National Ports Secretariat in Brasília this week.

With a debt reaching R$20 million, the Port Authority finds itself unable to continue vital dredging activities performed by the Dutch company Van Oord. Seeking a solution, stakeholders are urging for federal government assistance to address this financial shortfall.

The situation has been exacerbated by the prolonged inactivity at the Public Port in Itajaí, where container operations have been halted for over 458 days. As a result, revenue from tariff collections, known as “Table 1 fees,” has dried up, further hindering the port’s ability to finance essential dredging projects.

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)

Beyond Itajaí, the repercussions extend to Portonave in Navegantes, the state’s largest container terminal and the second largest in Brazil. Any disruption in dredging operations poses a significant threat to regional economic stability.

Although the private terminal in Navegantes currently sustains port sector revenues, relying on its operations to offset losses incurred by Itajaí’s stagnation, experts warn of dire consequences if dredging limitations persist. This includes irreversible damage to trade operations and potential economic setbacks for the entire region.

Moreover, legal constraints under the Ports Law prevent Portonave, as a private terminal, from funding dredging activities essential for maintaining navigational depths in the access channels and basins.

Recognizing the urgency of the situation, the Itajaí Council of Entities Movement, representing various local economic sectors, has rallied support by petitioning municipal and state authorities for action. Their call to address the dredging crisis has garnered backing from the Federation of Business Associations of Santa Catarina (Facisc).

Source: SC Todo Dia
Click here to read the original piece in Portuguese: https://sctododia.com.br/economia/porto-de-itajai-nao-tem-mais-dinheiro-para-pagar-dragagem-49145

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