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East Coast South America trade, shipping and infrastructure

Trades
Brazil´s trade balance registered a surplus of US$1.277bn in the fourth week of March. During the period, exports reachedUS$3.572bn whilst imports were US$2.295bn. The total surplus for March after the first four weeks stood at US$3.982bn. The daily export average in the fourth week was 26% higher than that of the first three weeks. The main products exported in greater quantities in the fourth week were synthetic rubber, sugar, cellulose, iron, steel, leather, copper cathodes, and soy oil.

                                                                                                   Shippers, cargo and business
                                                                                                   Top 50 Ocean Transport Intermediaries in Brazil
                                                                                                   Full 2015 in TEU
Ports, terminals and related infrastructure 

The auction of six port areas in Pará, which was due to be held this Thursday (March 31), has been delayed by 30 days due to a problem with ANTAQ´s IT system. According to the organ, the details of the auction will remain the same. The only consequence of the set back is an extension to time available to answered any questions and for proposals to be sent. Areas up for auction are two at Santarém, three at Outeiro and one at Vila do Conde. Five of the areas are for grains and one for minerals. Itaqui port has announced that an investment of RS$1.35bn will be made between 2016 and 2017, with R$255m to come from its own funds and the rest from private sources. Its own funds will be used to modernize grain handling and hence to increase the port’s capacity to service companies in the Central-West region. Private investments will be used to expand the Tancagem Terminal owned by Ultracargo. The works will include projects such as installation of infrastructure for liquid natural gas, expansion of pipelines for liquid petroleum gas and a system to receive fertilizers.

Last week Vale managed to complete a number of improvements it was making at its terminals in Complexo de
Tubarão in Espírito Santo state. The measures were taken to comply with a court order given in January to reduce particle emissions within 60 days. Improvements were made to piers I and II where iron ore isloaded, and to Praia Mole Terminal (TPM) where coal is off loaded. March 24, Triunfo Logística was given the go-ahead to invest in its installations at Rio de Janeiro port. In order to speed up the contract, now extended for a further 20 years, the company agreed to invest R$102m. The investment plans include the construction of mooring dolphins as well as installation of cranes and winches in order to increase productivity.

March 23, Terminais Portuários da Ponta do Félix S.A. managed to bring forward the renewal of a contract to invest R$114m in its facilities at Antonina port. It will construct a specialized warehouse for fertilizers with a minimum capacity of 120,000 tons as well as installing belts to link the new warehouse to the second berth. Other plans include a 170m extension to pier 3 and reinforcements to achieve a depth of 12.5m. The new contract is valid until December 30, 2037. SEP, the ports secretariat, informed that dredging works will start at Vitória port in June. This will conclude the works being done at the port and will allow the depth of the ports access channel to increase from 11m to 14m, thus allowing ships as long at 12.5m to dock. The improvements, due to be completed by October, are expected to allow the port´s capacity to increase by around 40%.

Last Wednesday March 23, the Federal Court of Accounts (TCU) ruled that an auction must be held for the area in Santos at which Transbrasa’s inland terminal is located. The area in question is 40,000m², which Transbrasa has occupied since 1981 without ever having been though the licitation process.

In February, Brazil imported six times more wheat from Paraguay than from the USA, totaling 78,668 tons and 11,550 tons respectively. During the season so far, which is from August 2015 to July 2016, imports from Paraguay have reached 638,099 tons as opposed to only 268,188 tons from the USA. Main reasons cited for this trend are better quality and prices for Paraguayan wheat.

On Wednesday March 23, Mercedes-Benz inaugurated its first car factory in Brazil located in Iracemápolis, São Paulo. The factory size is 93,000m², required an investment of R$600m and has the initial capacity to produce 20,000 vehicles per year. Brazil´s BRF announced last week that it has acquired Argentinian pork producer Alimentos Calchaquí. The move is part of BRF’s strategic plan to globalize by acquiring prominent meat companies in other countries.