Monday, December 7, 2009

Brazil Port And Infrastructure Expansion Will Maintain Container Throughput

New Money Available as Dredging and Beltway Plans Progress
Shipping News Feature

BRAZIL – As part of the Ring Road (Rodoanel) projects which are hoped to surround Sao Paulo news emerged over the weekend that funding was now in place to commence construction of the western beltway, Rodoanel Oeste, which it is estimated will cost $1.5 billion in total. The new road is an essential component in infrastructure plans to increase turnover in the Port of Santos from current shipping container levels of 4.5 million TEU to above 9million TEU upon completion of all projects.

Brazil has formulated dramatic plans for the region, last week the Ports Minister announced that the policy of deepening the port to fifteen metres from the current thirteen is now to be extended. Dredging will now take the depth to seventeen metres allowing access to even larger container vessels. Two new intermodal terminals are already being developed within the port with interests from DP World and the Mediterranean Shipping Company (MSC) to add to the already giant Brasil Santos Tecon, the largest container terminal in the whole of South America.

Brazils plans are all part of the Programa de Aceleração do Crescimento (PAC) or growth acceleration programme announced in 2007. In an uncertain market it seems many banks and financiers believe that the country’s rapid growth mean it is an ideal place for long term investment. The ambitious plans include the extension of the planned ring road. The western phase now has $940 million of funding in place from Japanese, French and Portuguese banks as well as Brazilian and the plan is to then extend the road south thus encouraging even more traffic onto the western section.

With lines like Mitsui OSK, NYK, Hanjin, K Line and Evergreen besides MSC all using Santos as a base for South American imports and exports for their Asian services, developments of both port facilities and transport infrastructure are essential to maintain the impetus to dominate regional trade which Brazil has as the largest country in the region.

Pic:- Courtesy of Santos Tecon