São Francisco waterway could lower food costs and strengthen supply in Brazil’s interior

Brazil’s Ministry of Ports and Airports is studying the reactivation of the São Francisco River waterway as a way to reduce cargo transport costs, with direct effects on food prices. The initiative is aimed at improving supply to inland cities by ensuring more regular delivery of products essential to daily life.

In practice, the expectation is that cargo circulation will increase, helping to energize local economies and generate jobs in sectors such as transport, port operations, trade and services.

The navigable stretch currently covers 1,371 kilometers, linking Pirapora in Minas Gerais state to Juazeiro in Bahia and Petrolina in Pernambuco, with potential to serve 505 municipalities and about 11.4 million people. The estimate is that the system could handle as much as 5 million tonnes in its first year of operation.

Ports and Airports Minister Tomé Franca said the reactivation of the São Francisco waterway would improve logistics efficiency and reduce transport costs. “It also expands the integration of regions that depend on the river as essential infrastructure. Bringing the São Francisco waterway back means delivering more development, lowering the cost of transporting goods and connecting people.”

For Otto Luiz Burlier, national secretary for waterways and navigation, the waterway would also improve access to essential inputs. “The waterway increases regularity in cargo transport and improves the arrival of food and indispensable materials, especially in regions that depend on this mode,” he said.

Among the main cargoes expected are grains such as soybeans, corn and cotton, as well as fertilizers, limestone and gypsum, inputs directly linked to agricultural production and the final cost of food.

More connectivity

The project to reactivate the São Francisco waterway also includes improvements to river navigability and infrastructure along the route, in addition to the installation of small public port facilities known as IP4s. The measure is expected to extend access to waterway transport for riverside municipalities and strengthen logistics integration among inland regions.

Management of the waterway will be transferred from the National Department of Transport Infrastructure to the Bahia state port company Codeba, in coordination with Brazil’s waterway transport regulator Antaq, as part of a broader reorganization of governance in the inland waterway sector.

Source: Ministry of Ports and Airports

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