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Announced a Construction of a new Private Terminal in the Port of Paranagua

Paranagua – New private port deliberated for Paranagua – Brazil

The port of Paranagua, Brazil is the second largest in tonnage terms and third largest in container traffic, let alone Grain and Fertilizers moves. It now could soon have another container and bulk terminal, although some remain skeptical about the constructions of the Novo Porto project with a capacity of 1.5 million TEUs at a cost of R$ 4 billion (Reais) ($1.1 billion). According to the latest information let out by an inside source the contract has been already signed last Monday the 13th.  The state of Paraná today has only the port of Paranagua, which has one container terminal and the port of Antonina, a niche, bulk port with a shallow draft, but shipper’s complaint about a “lack of competition” which could lead to two more box facilities in the region.

The Novo Porto project would be a private use facility (TUP) occupying 183 hectares (452 acres) with a T-shaped pier located 4 miles upriver (Ponta do Iboguaçú) from the port of Paranagua main quay. The focus would be on three outside berths for large container ships, but there would also be another four inner berths that could handle liquid bulks, solid bulks (mostly agricultural products such as soy and fertilizers) and, possibly, breakbulk cargoes.

The project has already been given an environmental license, which is one of the most difficult documents to obtain for building new ports in Brazil. The Novo Porto project still needs permission from ANTAQ, the government body for regulating ports and waterborne transport.

The source insists that the ANTAQ green light will come “very soon” and that construction will begin later this year and last for two years. She said also that there is enough cargo in the hinterland of Paranagua to sustain three terminals in proximity to each other, and within five years, Novo Porto will handle 800,000 TEUs annually.

Even though TCP has just been granted concession extension that will increase its capacity from 1.5 million TEUs to 2.5 million TEUs. Even though the Novo Porto will continue as planned.  The source said also that aim will be to win back a big percentage of the vast number of containers that has been lost to our neighbouring state of Santa Catarina, mostly to Porto of Itapoa,

It is true that some shippers — especially chicken exporters — are now shifting some containers via the port of Itapoa, Santa Catarina’s newest port, which is located only 50 nautical miles from Paranagua. A number of Brazil port specialists questioned do not believe so many boxes have switched to Parana’s neighbour to justify such a huge investment. They are also doubtful from where will born R$ 4 billion to invest.

One skeptic, an executive from a rival southern Brazilian box terminal, said he doubted if Novo Porto would get the ANTAQ authorization required to move ahead. There is already too much container capacity in both the southern ports system, including Paranagua, Itajai and Itapoa, as well as the southeaster system, with six terminals in Santos and three in Rio de Janeiro, including Sepetiba. The executive is of the opinion that to add more does not make sense right now.

The source informed the investors are being sought, mostly from abroad, and she is very confident that will find the funding and the project progresses. Se hinted that investors from the “Arab countries of the Middle East” had shown an interest, which suggests that maybe the UASC could be a prospective investor as it expands services along the east coast of South America, with new joint venture agreements with Chilean partner Ultramar and seeks to become a major global player.

We will follow this up and shall revert again whenever get more information.

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08.17.2018

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