Brazilian Ports / by Mark Langevin

The Brazil Business' latest briefing on Brazilian ports is a must read.

The briefing spells out the major challenges and efforts to rectify the obstacles to modernize Brazilian ports for the global economy.

Accordingly, the briefing reports,

Since the beginning of the privatization of the Brazilian ports in 1995, the lessee companies of container terminals have invested approximately USD 1 billion acquisition of modern equipment, physical infrastructure, training of manpower and infrastructure.

 

Particularly after the injection of resources by the Federal Government through the Growth Acceleration Program (PAC), the situation at the Brazilian ports started to improve.

 

Part of the dredging works in the main Brazilian ports are finished. With the sea deeper along the ports’ area, it is estimated that around 30% of the vessels worldwide that could not dock in Brazil before, now can.

 

But what used to be an issue at the sea, now it is an issue at the land. The logistical problems of access are evident, the bottleneck of access from the cargo container terminals generate unproductive periods, which are highly detrimental to the foreign trade and financial activity of Brazil. It is a fact that the rail network and roads in the vicinity of the ports are insufficient.

 

Another great matter about the Brazilian ports is the bureaucracy. Besides making everything more expensive, slowness in the Brazilian ports invented a truly “congestion at sea”. Every ship that arrives in the country waits at least 5.5 days to have the goods delivered by agencies such as IRS, the National Sanitary Surveillance Agency (ANVISA), the Ministry of Agriculture and the Docks. The world average is three days.

 

In Brazil, the organs responsible for clearance of goods run only during business hours. It is the only country among the world's major economies, which does not have these services available 24 hours.

 

Read the entire briefing here.

 

For more information on investments in the ports of the Northeast region, see the BrazilWorks Briefing paper:

 

Infrastructure Investment in Northeastern Brazil