Vila Velha Port Terminal Sets New Record for First-Quarter Container Throughput

The Brazilian logistics sector has long seen a surge in exports and imports. For example, exports up to the third week of June increased by 0.7% from the period spanning January to June 2023, totaling some USD 159.61 billion. Imports, on the other hand, expanded by 3.5%, representing a cost of USD 119.85 billion, according to Federal Government data.

According to Gustavo Paixão, Director of Terminals at Log-In Logística Integrada, the managing company behind Vila Velha Port Terminal (TVV), the terminal’s performance reflects a broader positive trend. In the first quarter of 2024, TVV recorded its highest-ever container throughput, totaling 56.3 thousand boxes, up 63% from the same period in 2023.

Paixão attributes this success to the intense pace of coffee exports from Espírito Santo. Data from the Secretariat of Foreign Trade (Secex) shows that coffee exports from Brazil in June outperformed the total exports in June 2023.

Another factor contributing to TVV’s success is the increase in imports of electric vehicles in flat rack containers, a service unprecedented in Brazil and conducted in partnership with Cosco, a Chinese company. According to the General Administration of Customs of China, Brazil became the largest importer of Chinese electric cars globally from January to April 2024, totaling 88.32 thousand units. “At TVV, there’s a similar pattern. In 2023 alone, we brought 44,600 electric vehicles from China in partnership with Cosco. We were also recognized as one of Cosco’s prominent partners in 2023, achieving a 25% share of the electric cars transported by the company,” Paixão said.

Eminent Challenges

Paixão noted that Brazil’s increasing output and new market ventures highlight the need for new investments in Brazilian ports. The growing volume of transported goods underscores the need for better port access (water and land), improved storage structures, enhanced operating capacity and productivity, as well as a more intense ufe of innovation and technology. As new ships and service routes emerge, significant operational bottlenecks appear in various ports, causing delays and queues.

Ports undergoing necessary modernizations to increase capacity and productivity may experience temporary reductions in capacity, exacerbating existing challenges. Log-In Logística Integrada recently announced a R$42 million investment in ongoing projects to make TVV the first Port Terminal in Latin America to operate containers remotely. This investment is part of the TVV concession agreement, renewed in 2020, which slates R$147 million for the first three years of the new contract and up to R$500 million by 2048.

The modernization efforts include upgrading three portainers responsible for handling a significant portion of containers in Espírito Santo. “With these improvements, operators will be able to control the equipment remotely through a 3D camera system, ensuring greater safety and enhanced performance,” Paixão explained.

Additionally, TVV’s ongoing actions include commissioning two new automated gates and acquiring a new semi-trailer with a higher capacity, increasing from 35 to 65 tons and from 12 to 14 units.

Investments in the terminal began in 2021, with more than R$82.9 million allocated to acquire two new MHC cranes and other equipment and systems to enhance productivity.

Paixão emphasized the urgent need for improvements in the channel to accommodate larger ships, expanded land access, and an increase in the port’s operating area to avoid losing competitiveness to other Brazilian ports. “These issues must be addressed and implemented quickly,” he concluded.

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