Vila Velha Port Terminal records 63% year-on-year throughput increase

The logistics sector in Brazil is grappling with heightened demand for both exports and imports, as evidenced by data from the Federal Government. The data indicates a 0.7% growth in exports totaling US$159.61 billion from January to June 2024 compared to the same period last year. Imports also saw a 3.5% increase, amounting to US$119.85 billion.

Gustavo Paixão, Director of Terminals at Log-In Logística Integrada, overseeing the Vila Velha Port Terminal (TVV) in Espírito Santo, noted that this trend is mirrored at TVV. During the first quarter of 2024, the terminal experienced its highest volume of container operations ever recorded for the period, totaling 56.3 thousand containers—an impressive 63% increase from the previous year.

Paixão attributes these results partly to Espírito Santo’s robust coffee exports, which have been particularly strong. June figures from the Secretariat of Foreign Trade (Secex) show that coffee exports have already surpassed the total for June 2023.

Additionally, TVV’s performance benefited from an uptick in the import of electric vehicles in flat rack containers—a novel service in Brazil facilitated through a partnership between TVV and Cosco, a leading Chinese company.

Chinese customs data further illustrate Brazil’s prominence as the largest purchaser of Chinese electric cars globally, with 88.32 thousand units bought from January to April 2024. Paixão highlighted, “At TVV, this trend is no exception. In 2023 alone, we handled 44,600 electric vehicles from China in collaboration with Cosco. Moreover, we were recognized as one of the Chinese company’s top suppliers, capturing a 25% share in their global electric vehicle volume.”

Emerging Challenges

Paixão emphasized that Brazil’s expanding production and trade with new markets underscore the urgent need for investments and modernizations in Brazilian ports. This includes improving water and land access, bolstering storage facilities, boosting operational capacity and productivity, and embracing innovation and technology. The influx of new vessels and trade routes has revealed critical operational bottlenecks at several ports, leading to delays in ship queues.

As ports embark on necessary modernization efforts to enhance capacity and productivity, temporary reductions in capacity may exacerbate existing challenges. Paixão noted, “At TVV, we’ve made substantial investments in modernization to expand our operational capacity. These investments have proven vital in tackling the challenges posed by increased imports and exports through Espírito Santo, mitigating what could otherwise be a more severe situation.”

Source: ES Hoje

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