Brazil to shift agricultural exports to northeast

The growth is expected to continue over the next ten years as the port follows through on plans designed to secure future volumes. These include the purchase of 119 acres on the eastern end of the Port Jersey peninsula for the potential redevelopment of new cargo container space, the development of an ExpressRail on-dock rail system to be ready by 2011, and the port’s $2bn, 10-year Capital Plan, which includes significant funds to upgrade the on and off-port road network.

Brazil’s main ports, which handle 85% of all exports, are located in urban areas in the south where there is little potential for expansion. Ports such as Santos also have draught limitations resulting in ships from Asia not being able to take on a full load. However, northeastern ports such as Itaqui, Pecem and Suape have no such limitations, either in terms of expansion potential or draught. Nevertheless, all three named ports require infrastructure upgrades before they could assume this type of responsibility. This switch from ports in the south to outlets in the north will be achieved gradually taking advantage of both small infrastructure improvements and upgrades in the overall transport chain.

The North-South railway will be the initial beneficiary of the programme. By using a combination of road and rail, grain from the interior could be shipped via Itaqui, for example, although this would have to be done in partnership with the CVRD rail company.