Porto Alegre Port Submerged; Infrastructure Damage Could Reach R$600 Million

The Port of Porto Alegre, the second largest in Rio Grande do Sul, is facing severe flooding with infrastructure damage potentially reaching R$600 million. The port complex is submerged more than 2 meters below the waterline of the Guaíba River, which rose to 5.13 meters at 9:30 PM yesterday. Revenue losses are projected to exceed R$2.2 million for May and June, with the port closed since May 2 due to heavy rains.

“Our estimate is that the damage to the port’s infrastructure will reach R$600 million, but we will only be able to assess it when the water recedes, which we hope will happen by the end of this month. However, I believe the port will only resume operations after two months,” said Cristiano Klinger, president of the Port Authority, Portos RS, in an interview with A Tribuna.

Klinger emphasized the need for a comprehensive assessment. “We will need to survey all the structures, conduct bathymetry, and perform necessary dredging because a lot of sediment has accumulated. The Port of Porto Alegre is more than 2 meters underwater, as the Guaíba’s level has risen above 5 meters, while our pier is at 3 meters. Thus, warehouses, scales, and all electrical components are submerged. We will likely need to replace everything.”

The Port of Porto Alegre primarily handles fertilizers and barley, among other products such as grains and project cargo. According to Klinger, the average monthly revenue from the port is R$1.1 million. “We will face two months of revenue loss.”

Pelotas

The Port of Pelotas, which also has suspended operations, specializes in moving wood logs, the raw material for cellulose production. “We move approximately 1 million tons of wood logs per year, generating revenues of R$1 million per month. Currently, shipments to the CMPC factory, which manufactures cellulose, are halted.”

On Tuesday morning, the Portos RS Board of Directors convened to assess the situation at the three ports: Porto Alegre, Pelotas, and Rio Grande, the latter of which continues to operate normally.

“The board is meeting weekly to evaluate the consequences for the ports and monitor all rescue efforts. The Port of Rio Grande is also providing assistance where possible,” said Jacqueline Wendpap, president of the Board of Directors of Portos RS.

She noted potential future impacts on the Port of Rio Grande. “There has been no impact yet, but we anticipate that the loss of production in Rio Grande do Sul will affect port operations.”

Rio Grande

The main foreign trade asset in Rio Grande do Sul, the Port of Rio Grande, continues to operate without disruptions to cargo movement.

According to Cristiano Klinger, “there has been no impact on ship movements. Many cargoes from ships already scheduled for this week were already at the terminals, so there was no interruption.”

Klinger confirmed that all road access to the port complex is now open. “BR-116, the main access route, is already open for truck and vehicle traffic. Today, we conducted a round with all terminals to verify that cargoes are arriving again, as they had to find alternative routes to bring production to our port.”

Impacts

Arno Gleisner, director of the Brazilian Chamber of Commerce, Industry, and Services (Cisbra), highlighted the impacts on foreign trade. “Export access to the Port of Rio Grande and the ports of Santa Catarina are congested or require longer routes. Factories are still halted due to a lack of inputs and personnel. Harvesting in the fields is challenging.”

Gleisner pointed out that these issues lead to increased costs and reduced volumes. “Soybean prices in Brazil have risen more than in the United States. Similar factors affect imports, though the impact is not yet widespread due to market limitations. We are concerned about the scenario, which threatens Brazil’s trade flow.”

On May 6, Portos RS issued Regulation 35, providing tariff discounts at the ports of Rio Grande do Sul for vessels transporting donations, based on a resolution from the National Waterway Transport Agency (Antaq).

Source: A Tribuna

Click here to read the original news report: https://www.atribuna.com.br/noticias/portomar/porto-do-rs-esta-submerso-e-prejuizo-pode-chegar-a-r-600-milhoes

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