Brazil to improve logistics for grains, ferts in 2025

Brazil's federal government plans a series of auctions for port terminals and waterways for 2025, totaling R8.5bn ($1.4bn).

The ports and airports ministry and national waterway transportation agency Antaq will be responsible for the auctions, seeking public-private partnerships that will increase efficiency and expand the country's transport options. Brazil expects to hold 21 auctions and one concession in 2025.

Many parts of the country lack reliable infrastructure to move grains and fertilizers and is highly dependent on road transport for cargo flow.

Ports

PAR14: The terminal in the Paranagua port, in southern Parana state, handles and stores solid vegetable bulk, such as soybeans, soybean meal, sugar, wheat and corn. The auction is scheduled for the first quarter of 2025, with an estimated investment of R529.2mn and a 35-year concession. The terminal will have capacity to handle 6.8mn metric tonnes (t)/yr.

PAR15:This other Paranagua terminal focuses on handling and storing vegetable bulk. The project foresees investments of R293.2mn and will have capacity to move 4mn t/yr. The concession period will be for 35 years and the auction is scheduled for 21 February.

PAR25: Another terminal in Paranagua focused on handling and storing vegetable bulk. With the capacity to move 4.3mn t/yr, investments are expected to reach R564.1mn. The terminal will be granted for 35 years and the auction is scheduled for the second quarter.

MCP01: Located in the Santana port, in northern Amapa state, it handles solid vegetable bulk, especially wood. The terminal was the subject of an auction held in 2018, but no proposals were submitted and the project was reassessed. A new auction is now scheduled for the second quarter, with investments of R84.6mn expected and a 25-year concession period.

VDC29: A terminal in the Vila do Conde port, in northern Para state, with an estimated investment of R716mn. It will have the capacity to handle 7mn t/yr, focusing on the handling and storage of solid vegetable bulk, especially soybeans and corn. The auction is scheduled for the third quarter, with a concession term of 25 years.

POA26: In the Porto Alegre port, in southern Rio Grande do Sul state, it will be used to handle and store of solid vegetable and mineral bulk. The concession period will be for 10 years, with an estimated capital expenditure of R21.1mn. The auction is scheduled for the third quarter.

SSB01: The auction for this terminal in the Sao Sebastiao port, in southeastern Sao Paulo state, is scheduled for the fourth quarter. The concession term will be 35 years, with an investment of R544.8mn. It will focus on moving and storing solid vegetable and mineral bulk, with an estimated capacity of 4.3mn t/yr.

IQI16: The terminal is in the Itaqui port, in northern Maranhao state, with an auction scheduled for the fourth quarter. The area will be dedicated to store and handle solid mineral bulk, especially fertilizers. The concession period will be 25 years, with an estimated investment of R63.9mn.

Access channel to the Paranagua and Antonina ports: The project to grant waterway access infrastructure to the ports in Parana state is unprecedented in Brazil. Capex is estimated at R1.1bn, with a concession term of 25 years. The auction is scheduled for the second quarter. The concession will cover port administration functions related to managing waterway access infrastructure, expansion, maintenance and operation of the access channel to Parana ports.

Waterways

Madeira River waterway: Important for the transportation of grains and fuels, it has a navigable length of 1,075km (668 miles), connecting Porto Velho city, in northern Rondonia state, to Itacoatiara, in northern Amazonas state. The Madeira waterway handled more than 10mn t in 2023 but can handle more than 25mn t/year, according to Antaq. The concession project's terms are still being developed and the auction is scheduled for the second quarter, with a term of 10-20 years.

Paraguay waterway: The waterway is important for the transportation of iron ore and soybeans. It is 1,323km long and runs from Ponta Pora city, in central-western Mato Grosso do Sul state, to Caceres city, in central-western Mato Grosso state. It handled more than 7mn t in 2023, with potential to reach more than 25mn t/yr, according to Antaq. The waterway also connects Brazil to Argentina, Uruguay and Paraguay. The auction model is also being developed and is scheduled for the fourth quarter. The concession period would be of 10-20 years.