..but warns capacity running out..

Current estimates suggest an average annual increase of 7% is to be expected in the near future. However, for the first quarter of 2005, traffic grew by 16%. It is now vital that road and rail access to existing terminals is improved, notes Rego, particularly given that the new Guaruja Grain Terminal (TGG) project, a joint venture between Brasil Ferrovias and the multinational Bunge, is currently being implemented. Notwithstanding the imminent arrival of this new facility, the current port will have arrived at its nominal operational capacity by the end of the current year.

Rego therefore states that the government must look at the US$2 billion project to create a new operational area at Barnabe-Bagres. This will be taken forward by the private sector once permission to do so is granted.

Construction of a new quay and backup area will go ahead at Largo dos Bagres.