Friday, November 6, 2009

Damco Opening Up Amazonian Freight

New Barge Service Proving Highly Successful
Shipping News Feature

BRAZIL – Damco’s new barge feeder service between the Amazonian ports of Porto Velho and Manaus is proving a huge success with local businesses that until now had major problems accessing the countries sea ports for the export of goods and have been penalised by high transport costs as a result.

Damco, the logistics division of Moller-Maersk, began the service in April this year after conducting trials in October of 2008. By containerising goods at remote Porto Velho, Damco has, in effect, made the port an internationally connected terminal via Manaus from where containers and goods from the furthest interior can link into Damco’s global logistics network.

Speaking to the Handy Shipping Guide on the reception the service has had since it began operations a spokesperson said that: ‘It’s a huge success. We (Damco Brazil) promoted this service at a trade fair in Porto Velho and all the market was very excited about it. Even the Rondonia State Governor visited us on our stand to understand the project. We are now receiving many inquiries from different customers.’

Ulrich Nissen, head of Damco Brazil, said: 'We are very excited to give the importers and exporters in the interior region of North West Brazil the chance to use Porto Velho Port (Rondonia) which will save them money, transit time and enable them to get a faster payment from their consignees by issuing the bill of ladings in Porto Velho and at the same time reduce carbon emissions by using the river instead of road transportation.

‘This is a major advantage for Damco customers exporting cotton, leather, minerals, lumber and beef from the region going to Europe, Russia and Asia. The approximate cost savings for the exporters are around 10% of the total logistics costs and further more it cuts 3-5 days off the total transportation time.’

The service runs between Port Vehlo and Manaus every ten days with transit taking seven days. Since April the link has carried 5,000 metric tons.