Other Logistics

Port of Natal shows first impacts of CMA-CGM calling off operations

May, 02, 2023 Posted by Gabriel Malheiros

Week 202321

The current state of the Port of Natal resembles an abandoned landscape, as shown in a video sent to the news channel AGORA RN. The footage reveals a completely empty yard with no containers or people working. The French company CMA-CGM’s decision to stop holding operations at the port in northeastern Brazil directly impacts the port terminal’s activity and the state’s economy.

The French company’s operations were terminated in April. In December, the Rio Grande do Norte state port authority Codern announced that the withdrawal of the company’s operations, previously scheduled for October of this year, would cause a drop equivalent to 13% in the planned revenue for 2023.

In an interview with AGORA RN, Brigadier Carlos Eduardo da Costa Almeida, who was CEO of Codern until February, stated that the planned annual demand for the port of Natal was around R$ 30 million and that the loss generated from CMA-CGM ceasing operations is estimated at 13.3%. “We will have a serious problem, an estimated loss of R$ 4 million per year in revenues for the Port of Natal. It’s concerning, not just because of the R$ 4 million amount, but also because of the workforce employed at the port. If we round it up, 250 workers represented by three different unions working, added to their family members, totaling 1,500 people, will feel the impact. Local commerce is not even considered,” he said. The company did not comment by the time this report was written.

Leaving Port of Natal

The main reason for CMA-CGM’s to leave Natal was the need for more space, which was granted in a proposal to the Ceará state port authority, which authorized the lease of an area two times larger than the area available in the capital of Rio Grande do Norte. The acquisition of new ships that cannot dock at the Natal port also weighed in. The vessels making regular stops at the Port of Natal will go out of circulation.

One issue that hinders the operation is the lack of the so-called defenses on the Newton Navarro Bridge. According to Carlos Eduardo, these defenses are barriers that protect the bridge structures in case of errors in ship maneuvers.

Source: Costa Branca News

To read the source material for this story, check: https://costabrancanews.com/porto-de-natal-cenario-e-de-desolacao-apos-saida-da-francesa-cma-cgm/

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