Port of São Francisco do Sul Sees Growth, While Paranaguá Struggles with Logistical Issues

The Port of São Francisco do Sul in Santa Catarina handled 9.9 million tonnes of cargo in the first seven months of 2024, marking an 11% increase compared to the same period in 2023, when it processed 8.9 million tonnes. The most significant growth was in imports, which rose by 13%, reaching 4 million tonnes, up from 3.5 million tons the previous year.

This growth was primarily driven by steel products (+25%) and fertilizers (+10%). Steel products totaled 2.4 million tons, while fertilizers reached 1.4 million tonnes.

The graph below shows the top commodities exported from the Port of São Francisco do Sul from January to September. Datamar presented the data in the DataLiner.

Top Cargo at the Port of São Francisco do Sul | Jan-Sept 2024 | WTMT

Source: DataLiner (click here to request a demo)

According to Ivan Amaral, the Secretary of Ports, Airports, and Railways of Santa Catarina, the growth is due to port infrastructure improvements. “These results reflect the efficiency and modernization of the ports in Santa Catarina, as well as the strategic role they play in national and international trade,” he noted.

Improvements include investments in technology (R$20 million in 2023), the railway connecting the port, four strategically located airports (Joinville, Navegantes, Florianópolis, and Curitiba), and a road link to BR-101, one of Brazil’s main highways.

The Port of São Francisco do Sul, founded 69 years ago, is now the largest port in the neighboring state.

Port of Paranaguá Loses Ground Due to Logistical Problems

While the Port of São Francisco do Sul gains momentum, Paranaguá faces cargo classification and auditing challenges. According to a businessperson in the sector who spoke to JB Litoral, changes in cargo quality procedures have unsettled exporters.

“It led to a mass exodus of many of my clients. They went to São Francisco do Sul or Santos. Unfortunately, Paranaguá has become the last option,” he said.

The businessman also explained that exporters are frustrated by Bureau Veritas’s lack of transparency regarding the ATEXP (Association of Export Corridor Terminals) classification.

“With the new procedures for grain classification, where the cargo auditor can no longer monitor reclassifications or have access to a sample for counter-testing in a trusted lab, exporters see the services provided by Bureau Veritas as non-transparent, which is why they are seeking other ports,” he explained.

He added that for about three months now, cargo classification results can only be contested through arbitration by IDR (Institute for Rural Development of Paraná), which adds additional costs for the companies originating the cargo. “This entire process (contesting a cargo classified as unsuitable) now takes much longer. It leads to demurrage, and no one takes responsibility for it. Ultimately, the costs fall on the exporter. So, they prefer to go to another terminal,” he explained.

For Portos do Paraná, the situation now reflects stricter control of exported cargo. “Due to the strict monitoring that ensures the quality of exported cargo at the Port of Paranaguá, Portos do Paraná has seen a rise in suspected fraud at the Screening Yard in 2024,” the public company stated.

According to Portos do Paraná, from January to September this year, the port authority identified nearly 8,000 rejected trucks (7,821). These are cargoes that failed to meet the minimum product quality requirements, representing a 123.07% increase compared to the same period last year (3,506). All suspected cases are reported and forwarded to the Federal Police and other security agencies.

By the time this report was published, Bureau Veritas had not commented on the matter. The company still has time to respond in JB Litoral.

Source: JB Litoral

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