Santos Brasil Expands Capacity at Vila do Conde Terminal to Mitigate Drought Impact in Amazon Region

With another year of severe drought expected in the Amazon region, Santos Brasil is preparing to mitigate the impact on regional logistics by temporarily expanding the capacity of its Vila do Conde container terminal in Barcarena, located in the Amazon River delta, by approximately 30%.

To tackle this challenging scenario, the company has relocated the area traditionally used for storing and maintaining empty containers to an external area of 22,000 m². This adjustment frees up space within the Tecon terminal, increasing its operational capacity from 8,500 TEUs per month to around 11,000 TEUs per month.

During last year’s historic drought, the Vila do Conde terminal played a crucial role in the region’s logistics. It developed into a port of call for cabotage and long-haul ships that couldn’t get to Manaus, which made container transshipment in Barcarena necessary. The unloaded cargo at Santos Brasil was transferred to flat-bottomed barges, which could navigate the low water levels and continue to Manaus. The same operation was conducted on the return journey.

Between September 2023 and January 2024, the terminal handled 65,000 TEUs, marking a 110% increase compared to the same period the previous year. Of this total, 28,000 TEUs were transshipped cargo to and from Manaus due to the climatic conditions.

With the current adaptations, the terminal is better equipped to handle the excess volume safely and efficiently, helping to mitigate the logistical challenges in this region, which relies heavily on the Amazon River for supply and business continuity in the Manaus Free Trade Zone.

The inclusion of Vila do Conde in this new logistics framework, adequate to addressing climate change effects in the North region, is made possible by significant investments Santos Brasil has made in expanding and modernizing its terminal. These investments are aimed at anticipating future customer demands and contributing to regional development. According to Bruno Stupello, Santos Brasil’s Director of Port Operations, the company is prepared to support its clients operating in Pará and en route to Manaus.

Investments

In 2022, Santos Brasil approved a new investment cycle for the terminal, totaling R$120 million for expansion works and new equipment purchases. The goal is to increase capacity to 300,000 TEUs per year by 2025. Between 2018 and 2023, the company had already invested R$131 million in nominal terms (R$189 million in adjusted values) and plans to invest R$100 million throughout 2024.

Tecon Vila do Conde is a river terminal capable of handling containers, general cargo, and project cargo. It has immense growth potential, driven by agribusiness and mining exports and equipment and machinery imports. It is strategically located in the North Arc, in the Amazon River delta, an area with extensive hydrographic coverage and proximity to major international maritime routes, providing access to all continents.

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