Porto do Pecém Becomes an Alternative to Porto de Santos for Brazilian Cotton Exports

The Porto do Pecém in Ceará is emerging as an alternative to Porto de Santos for the export of Brazilian cotton. Brazil, the world’s largest exporter of cotton, currently concentrates 90% of this export flow through the São Paulo terminal.

The Brazilian Cotton Producers Association (Abrapa) and the Bahia Cotton Producers Association (Abapa) are exploring a new route through the Ceará terminal to diversify export routes. Luiz Carlos Bergamaschi, president of Abapa, highlights that cotton producers nationwide are seeking transportation alternatives to reduce costs and enhance the competitiveness of Brazilian cotton.

Due to congestion and delays in shipments at Porto de Santos, producers are seeking other terminals. Porto do Pecém stands out for its infrastructure tailored to handling cotton. Export through Pecém has been under consideration for a few years, and recently, the Port Authority and other export agents organized a meeting with the associations.

The graph below shows the main cargoes handled at Porto do Pecém during the year’s first nine months. The data comes from DataLiner.

Main Cargoes at Porto do Pecém | Jan-Sept 2024 | TEUs

Source: DataLiner (click here to request a demo)

Raul Neris Viana, Port Business Manager at the Pecém Complex, explains that the goal is to anticipate an expected flow increase once the Transnordestina Railway begins operation. Representatives from Porto do Pecém, Terminais Portuários do Ceará (Tecer), and several operators received the association delegation and presented the facilities, emphasizing that the concentration at Porto de Santos is not geographically logical.

A shift in the transport route for Brazilian cotton largely depends on the ports’ transportation and operational costs, as Luiz Carlos Bergamaschi emphasized. He states that comparisons are being made between terminal costs and their operational capacity and efficiency. Although Porto do Pecém has the potential to adjust expenses to become more competitive, Bergamaschi points to a physical challenge in transporting goods to Ceará: an unpaved stretch of BR-020 highway.

Augusto Fernandes, a customs clearance expert at JM Negócios Internacionais, says that Porto do Pecém already presents lower operational costs compared to the Santos terminal. According to him, the logistics from Ceará offer a geographic advantage, considering that China is the primary destination for Brazilian cotton.

Source: Mais FM
Click here to read the original text: https://www.maisfm.com/porto-do-pecem-se-torna-opcao-frente-ao-porto-de-santos-para-a-exportacao-do-algodao-brasileiro/

Sharing is caring!