Port Traffic on the Rise

Expanding the Gross Domestic Product (GDP), record agricultural harvests and the first signs of industrial recovery boosted port traffic and placed pressure on Brazil’s strained infrastructure. In the first half of the year, the sector handled 646 million tons, with 64% processed at private terminals, according to data from the National Waterway Transport Agency (Antaq).

The container segment, which transports industrial and agro-industrial cargo, grew by nearly 20%. As of August, Datamar reported an 18.8% increase in imports, totaling 2.1 million TEUs (a 20-foot container unit), and a 14.3% rise in exports, reaching 2 million TEUs. Vinícius Estrela, executive director of the Brazilian Specialty Coffee Association (BSCA), stated that some shipments are waiting up to two months for loading, which could diminish the value of specialty coffee, which suffers a discount if it doesn’t reach the buyer within three to six months.

The following chart, using data from DataLiner, compares container exports at Brazilian ports from January to September in the last three years:

Brazilian Container Exports | Jan-Sep 2021 vs. Jan-Sep 2024 | TEUs

Source: DataLiner (click here for a demo)

The following chart compares container imports at Brazilian ports from January to September since 2021:

Brazilian Container Imports | Jan-Sep 2021 vs. Jan-Sep 2024 | TEUs

Source: DataLiner (click here for a demo)

Gustavo Bonini, vice president of the National Association of Automotive Vehicle Manufacturers (Anfavea), advocates for the expansion of vehicle terminals, which are congested with 90,000 cars imported from Asia—the typical number is 13,000. He notes that delays in unloading auto parts caused by a ship skip in a port cause logistical chaos and can even halt production.

However, both public and private ports are executing significant investments. Eduardo Nery, general director of Antaq, reported that the leases auctioned in 2024 (five in August and three scheduled for December) will require investments of R$3.7 billion. “In 2025, 19 areas will be auctioned, totaling R$6.8 billion, including the access channel at the Port of Paranaguá and the concession of the Port of Itajaí.”

The Port of Santos (SP) has an investment plan totaling R$ 21 billion, which includes terminal expansion, dredging, and a new tunnel. The controversial STS-10 project, a fourth container terminal, has returned to the agenda. The critical debate is whether Santos has reached its capacity limits. The Santos Port Authority (APS) believes it has not and had initially decided not to auction the terminal, opting to expand existing terminals operated by Santos Brasil and BTP. “Due to pressure from Antaq and the Federal Court of Accounts (TCU), the Civil House requested a reevaluation of the STS-10 project,” said Anderson Pomini, APS president.

In a statement, the Minister of Ports and Airports, Sílvio Costa Filho, announced that four berths will be added (the original plan called for three) in alignment with the Civil House, increasing Santos’ container capacity by 50%. Infra S.A. is updating the project, and the study will be submitted to the TCU this year. The auction is planned for 2025.

Santos Brasil is investing R$ 2.6 billion to expand the terminal’s capacity from 2.4 million to 3 million TEUs by 2026. “Santos Brasil is now part of an international group with a global presence. This opens up many project opportunities,” said Antônio Carlos Sepúlveda, the company’s president, who was acquired in September by the French firm CMA CGM.

Fabio Siccherino, CEO of DP World, highlights the success of the 2018 decision to include infrastructure for pulp at the Santos terminal, with an initial investment of R$ 700 million and a 25-year contract with Suzano to handle 5 million tons. In May, DP World signed a 30-year agreement with Rumo, investing R$ 2.5 billion to handle 9 million tons of grains and 3.5 million tons of fertilizers. “This diversification is crucial to cope with current challenges. We’re also investing R$ 450 million in containers to increase capacity from 1.3 million to 1.7 million TEUs in two years,” said Siccherino.

Bracell, part of the Royal Golden Eagle (RGE) group, is developing another pulp project. Patrick Silva, vice president of supply chain and logistics at Bracell, mentioned that the terminal in Santos invested around R$500 million to handle 3 million tons from its Lençóis Paulista (SP) plant. BTP will also invest about R$2 billion in the coming years to expand its terminal’s capacity by 40%.

There is no shortage of interest from major investors. MSC, through its Terminal Investment Limited (TIL), is interested in all opportunities in Brazil, according to Patricio Junior, TIL’s investment director. The company acquired a controlling stake (56.5% owned by Ocean Wilsons) in the port operator Wilson Sons for R$ 4.35 billion. “If STS-10 had been implemented when it was first announced four years ago, today we would have a large terminal and more capacity in Santos,” said Junior.

Ricardo Rocha, president of Maersk for the East Coast of South America, believes efficiency can only improve with expansion. “With 92% utilization, Santos is close to reaching its maximum capacity. Terminals worldwide with utilization above 80% see a decline in efficiency.”

Maersk, through APM Terminals, owns 50% of BTP and 30% of the Itapoá terminal (SC) and is investing R$ 1.6 billion in a second container terminal at Suape (PE), Tecom II, with a capacity of 400,000 TEUs and operations set to begin in 2026. “STS-10 is necessary to address the capacity shortage and allow Brazil to bring transshipment cargo to the continent’s East Coast, saving R$ 600 million,” said Leonardo Levy, investment director for the Americas.

Ricardo Arten, president of the Itapoá port, mentioned that the terminal can only increase. “In addition to the R$ 500 million already approved in investments, we plan to invest before demand catches up to be the largest and most efficient port in South America in ten years.”

Suape is investing R$ 344 million in dredging to increase the draft to 17 meters. “An additional R$ 123 million will be invested in recovering the quay’s jetty to attract new business and long-haul routes,” said President Márcio Guiot.

Luiz Fernando Garcia, president of Ports of Paraná, said that Paranaguá has already auctioned five leases in the last two years and is preparing for three more auctions. “Among them are Par-15, a terminal for vegetable bulk cargo with investments of R$ 500 million, and the unprecedented concession of the channel.”

TCP, the container terminal in Paranaguá, still needs to invest R$ 620 million as part of the early renewal of its contract but is also considering further expansion.

Source: Valor Econômico

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