BRAZILA BRAND OF EXCELLENCE

BRAZILIAN PORTS

A SAFE HAVEN FOR 1 INTERNATIONAL INVESTMENT BRAZIL Contents A message from the Minister for External Relations

november / 2008

Cover: illustration based on OPENING DOORS a poster by Oswaldo Miranda (Miran) published 1992 in Director and editor volume 36 of Gráfica TO THE FUTURE Dirceu Brisola magazine. assistant director Marieta Magaldi executive editor Alex Branco The two centuries since Opening to ensure that their capacity accompa- translator Brian Nicholson of the Ports, in 1808, have witnessed nies increases in Brazilian production. contributors João Carlos Rodrigues, Luiz Gonzaga progressive transformations in the Moreover, Brazil needs to develop re- S. Neto, Timóteo Lopes Brazilian ports sector, enabling better sponsible environmental management photos Agência Brasil/Roosewelt Pinheiro, service of the Nation’s development capacities, and achieve more harmoni- Sérgio Coelho/CODESP, Tadeu needs. This challenge has encom- ous port-city integration. Nascimento graphic design passed efforts to affirm Brazilian in- It was with these objectives in mind Assaoka.D Comunicação 4 An Ocean of Opportunities Brazilian exports have tripled in the last ten years and now the country requires huge graphic production terests, within the broader context of that, in 2007, the Ministry of External Solange Melendez investments in port infrastructure. Investment projects in the coming years are likely to exceed R$19 billion. international economic relations. Relations launched a project in sup- printed at Celso Amorim Ipsis Gráfica The Government of President port of the modernization of Brazil’s Minister for External Relations 13 Growth of Foreign Trade Stimulates Private-Sector Lula has taken a vigorous stance at ports. Trade missions were dispatched Interest in Ports Brazil Ministry of External Companies operating public and private port terminals are investing heavily; sector driven by various levels, in its quest to reduce to the world’s main ports, with the aim NOW Relations reduction of logistics cost and entry of new players inequality and combat barriers that distort fair trade, an of attracting investments, technology, and knowledge. Editora Brazil Now Ltda. indispensible underlying component of any development Strategic partners were selected to enter into coopera- Av. Prof. Alfonso Bovero, 323 16 Brazilian Ports: Open for Investment Trade Promotion 01254-000 São Paulo SP Brazil New rules will allow Brazilian and foreign private companies to construct and operate ports Department policy. tion agreements with Brazil. Work groups have been set Phone: 55 11 3672 4323 under concession Anexo Administrativo I - Sala 534 Fax: 55 11 3875 7100 Palácio Itamaraty The Ministry of External Relations has actively contrib- up with these partners, to identify new opportunities for http://www.brazilnow.com Esplanada dos Ministérios - Bloco H 20 Airports, Railroads and Highways Help Make 70170-900 Brasília - DF uted toward this process. Alongside other public and pri- cooperation and to pursue other specific goals. Distribution Brazilian Ports More Dynamic Phones: 55-61-3411-8793/ vate players, it has supported Brazil’s vocation as a global The “Seminar: Opening of the Ports to Friendly Na- Brazil - a Brand of Excellence is Government funding to interconnect ports, airports, highways, railroads and waterways will 8794/8798 distributed worldwide by the total R$58.3 billion.. Fax: 55-61-3411-8790/6735 protagonist in international trade with a diversified prod- tions: 200 Years of Trade and Cooperation “ is yet another Brazilian Ministry of External E-mail: [email protected] [email protected] uct portfolio and an increasing varied array of markets. initiative targeted at contributing toward a veritable “re- Relations, via its embassies, 24 Arteries for Development consulates and other offices. Website: www.braziltradenet.gov.br The ports sector, specifically, is of utmost importance for opening of the Brazilian ports”. As agreed, in coordina- Home to the world’s largest river system, Brazil is investing to develop its waterways network. Distribution within Brazil is the The goal is to greatly expand cargo volumes responsibility of the publisher, Trade Programmes Division modern, secure, and balanced participation in the world tion with the Special Secretariat for Ports and the National Editora Brazil Now Ltda. Phones: 55-61-3411-8989 economy. Water Transport Agency ANTAQ, the aim of this meeting 25 At Peace With the Sea Fax: 55-61-3411-8967 To advertise please Strong environmental legislation and good programs by companies, NGOs and public E-mail: [email protected] At the international level, ports throughout the world is to identify the main bottlenecks in Brazil’s port logisti- institutions all help ensure that Brazil preserves its marine biodiversity contact have been undergoing intense and swift processes of cal systems, and to propose solutions for further develop- Editora Brazil Now Ltda. Trade Information Division [email protected] Phones: 55-61-3411-8932 technological and managerial modernization, with the ment of the sector. The experience of the world’s main 27 Synergic Interventions Fax: 55-61-3411-8954 http://www.brazilnow.com Projects to modernize and expand Brazilian ports are breathing new life into port cities and E-mail: [email protected] emergence of new paradigms of excellence. Regardless of international ports is to be presented by experts in the offering a better standard of living for local communities responsible director the economic scenario, these changes need to be taken field, and debated by Brazilian specialists. Dirceu Brisola (MT 8.961) Trade Promotion Operations 29 Expanding the Knowledge Base Division into account by countries. Brazil’s Ministry of External Relations operates on many The Brazilian Ministry of External Relations is organizing a meeting with 20 international and Phones: 55-61-3411-8529/8531 With the support of the national specialists to identify bottlenecks and opportunities at Brazilian ports Fax: 55-61-3411-6007 In the case of Brazil, where over 80% of our trade is fronts. On all of them, Brazilian diplomacy seeks to pro- MINISTRY OF EXTERNAL E-mail: [email protected] handled by the ports, our participation in worldwide trade mote articulation in defense of our commercial interests. RELATIONS Trade Fairs and Tourism Division flows is heavily dependant upon infrastructure and logis- Likewise, in the fields of logistics and infrastructure, we Phones: 55-61-3411-8960 Fax: 55-61-3411-8957 tics. To maintain competitiveness, the Brazilian ports must have sought to assist and provide depth for Brazil’s project E-mail: [email protected] address challenges, such as increasing efficiency, reducing for economic development with social justice. Through operating costs, and effective attraction of investments solid partnerships, and with much work, we aim to reopen and know-how to sustain expansion of the sector, in order the doors to a new era of international cooperation.

2 3 of US$281 billion in 2007. GUIANA SURINAME VENEZUELA FRANCESA Santarém Boa Principal Ports Vista Brazil is also expanding the number GUIANA Manaus Portos Marítimos Brazil has numerous fine ports Investments Macapá of countries with which it trades. From Vila do Conde along its Atlantic seaboard COLÔMBIA January to September of 2008 Brazil ex- Ilha Belém Macapá de Marajó ported to 224 countries and imported Itaqui Belém from 109. While Brazilian exports still in- Santarém São Manaus Luis Pecém clude a strong element of commodities Fortaleza (petroleum, iron ore, soy, grains, coffee Fortaleza Areia Branca Teresina Natal and sugar as well as newcomers such PI Natal Cabedelo as ethanol and bio-diesel) they now also An Ocean of João Pessoa Recife include high-value-added items such as Porto Velho Recife Suape Rio airplanes, vehicles, engines, auto parts, Branco Maceió Palmas Maceió processed meat and steel products. Aracaju Opportunities Barra Brazilian imports have risen signifi- dos Coqueiros Salvador cantly this year but the country never- Salvador theless continues to run a significant Brazilian exports have tripled in the last ten years and now thePERU Aratu Cuiabá country requires huge investments in port infrastructure. DF Ilhéus trade surplus. “We will generate a Goiânia Investment projects in the coming years are likely to exceed very important surplus this year”, said BOLÍVIA Miguel Jorge, Brazil’s Minister for De- R$19 billion Belo Horizonte Campo Barra do Riacho velopment, Industry and Foreign Trade Grande Vitória Praia Mole (MDIC). In September the ministry an- Vitória nounced a plan entitled “Brazilian PARAGUAY Rio de Forno São Janeiro Paulo The Brazilian infrastructure sector is gearing up to support tem. For its part the federal government has made the rules Niterói Export Strategy”. This foresees invest- the strong growth of the country’s foreign trade. In the last in the ports sector more flexible with the recent publication Rio de Janeiro ments of R$34 billion through 2010 Itaguaí Curitiba 10 years exports have more than tripled, while imports have of Decree 6,620, which allows Brazilian and international pri- CHILE Angra dos Reis to expand the participation of Brazilian São Sebastião more than doubled. In order to handle the trade boom Bra- vate companies to build and operate new public portsOceano Pacífico under exports in international markets and to Florianópolis Santos zilian ports – which handle 95% of the country’s trade by concession. Ports Minister Pedro Brito said he hopes Brazilian Antonina stimulate small and medium sized com- Paranaguá Porto São Francisco do Sul volume and 85% by value – have been receiving significant ports will receive investments totaling R$19 billion through Alegre panies to export. Itajaí Imbituba ARGENTINA At the same time that Brazilian ex- public and private investments. the coming years. Laguna At the same time, large-scale projects in transportation lo- Investments are needed to expand and modernize Brazil- Porto Alegre ports are winning new markets they

URUGUAY gistics (railroads, highways, waterways and airports) are now ian ports to handle the growth of foreign trade. From 1998 to Rio Grande are also increasing their presence in underway or will be starting in the short or medium term and 2008 Brazil’s total trade flow, counting imports and exports, traditional trading partners such as the will promote greater integration with the country’s ports sys- jumped from US$108 billion to an estimated US$400 billion, Growth of Trade United States, European countries, Asia 1998-2007 US$ Millions and Latin America. Brazil’s increasingly 2 9 0 , 0 0 0 dynamic presence in international trade 2 6 0 , 0 0 0 Surplus Exports is rooted amongst other things in the 2 3 0 , 0 0 0 Imports Total trade increasing level of globalization of the 2 0 0 , 0 0 0 1 7 0 , 0 0 0 Brazilian economy. Foreign companies 1 4 0 , 0 0 0 are operating with complete security 1 1 0 , 0 0 0 in Brazilian port terminals and Brazil- 8 0 , 0 0 0 ian companies are becoming more and 5 0 , 0 0 0 more international. 2 0 , 0 0 0 - 1 0 , 0 0 0 The Bunge group is Brazil’s fourth 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 biggest exporter, with sales of US$4.1 Source: SECEX/MDIC billion moving through Brazilian ports in the period January to September this an increase of no less than 268%. In the same period exports year. Cargill, the seventh largest, exported US$1.79 billion. jumped from US$51 billion to a projected US$208 billion, an French group Louis Dreyfus was the 10th biggest exporter increase of 306%, while imports rose from US$57 billion to with sales of US$1.5 billion, while Dutch group Shell exported an estimated US$183 billion, growth of 220%. The country’s US$1 billion. Foreign companies operating in Brazil are also 40 principal seaports and four principal river ports stretching major importers, for example Motorola is the fifth biggest along the 8,200 km Atlantic coastline and including 17 states importer with purchases of US$1.3 billion while Samsung of Aerial view of Rio de Janeiro Port: the Brazilian government has introduced new legislation to help attract private investment in ports handled a total of 754 million tonnes of cargo worth a total Korea is the seventh ranked importer on US$1.2 billion and 4 5 PORT OF SANTOS PORT OF São Sebastião (State of São Paulo) (State of São Paulo) A message from the Minister for Ports

Largest port in South America, responsible for handling around 25% of Brazil’s Brazil’s biggest port for liquid bulks, located on the north coast of the State of foreign trade (by value). Santos lies 65 km from São Paulo, which is Brazil’s São Paulo in the Southeast of the country. São Sebastião handles 26% of all largest city and the capital of the country’s economically most important state. of Brazil’s liquid cargos. It has a Petrobras terminal that is very important for Santos serves a hinterland which generates some 55% of Brazilian GDP. handling petroleum and derivatives, in particular for imports. Modernization fInvestments and main projects fInvestments and main projects Ongoing – R$2 billion (2008-2009) – PAC and PND: R$320 million, plus R$1.5 billion (2009) – Construction of four quays for containers, an offshore private funds. Involves dredging, construction of access roads, new quays and area, four piers for liquid bulks, and interconnection with the ethanol pipeline terminals, other improvements. from the Planalto inland region (projects under study). of the Ports Under study – R$9 billion – Public and private: Capacity expansion from 110 to 230 million tonnes/year. fTotal trade: US$7.05 billion Exports: US$1.4 billion / Imports: US$5.65 billion fTotal trade: US$71.5 billion Exports: US$43.47 billion / Imports: US$28.03 billion fMain cargos Loading – Crude oil, gasoline, vehicles, aviation fuel, breeding stock (bovine, fMain cargos goat and sheep), horses. Loading – Soy, meat, coffee, sugar, ethanol, maize, diesel, fuel oil, citric juice, Unloading – Petroleum, diesel, aviation fuel, naphtha, barley, pipes, vehicles, iron and steel products. iron, steel, sulfur, sailing boats. Unloading – Fertilizers, sulfur, aeronautical parts, vehicles, wheat, LPG, LCD The creation of the Special Secretariat establishment of professional management monitors, coal, caustic soda, salt. fCargo volume (in million tonnes/year) (Just the port) Total: 50.33 / Petrobras terminal = 49.84 for Ports (SEP) in 2007 and the 2008 com- in the federal port companies. fCargo volume (in million tonnes/year) Total: 80.7 / Loading: 53.8 / Unloading: 26.9 fPort authority memoration of the Bicentennial of the In order that all these activities should Companhia Docas de São Sebastião (CDSS) fSelected terminals (private) State Government Opening of Brazilian Ports to Friendly Na- be coherent and not dispersed, it is essen- Berthing quays: 64. Terminals: public (50.2%); private use (38.5%); private tions were two events that fell close togeth- tial that we hire an international consor- (11.3%), Dow Chemicals, Cargill, Cutrale, Cosipa, Vopak, among others. fLocation Av. Altino Arantes 410 – Centro, São Sebastião (SP) – CEP 11600-000 er and were particularly important for the tium of consulting companies to draw up fPort authority Tel: (12) 3892-1899 – Site: www.portodesaosebastiao.com.br Companhia Docas do Estado de São Paulo – CODESP transformation of the ports sector in Brazil. a long-term strategic plan for development Federal government (SEP) fDirectors Sérgio Krichanã Rodrigues – Director for Administration Finance This is because they provided an opportu- of the ports sector. fLocation Av. Rodrigues Alves s/nº – Macuco – Santos, São Paulo – CEP 11015-900 nity for government officials, businessmen However, other challenges also await Tel: 55 (13) 3202-6565 – Site: www.portdesantos.com and labor leaders to think about the sector, Pedro Brito society and the users of the ports system. f Minister of the Special Secretariat Directors and this is producing innovative decisions These have led the SEP to a greater involve- José Roberto Correia Serra – Director-President PORT OF Vitória for Ports. (State of Espirito Santo) Alencar Costa – Administration and Finance Director and stimulating a great national movement ment in questions related to the Brazilian Carlos Helmut Kopittke – Commercial and Development Director Located in the State of Espírito Santo on the northern stretch of Brazil’s South- east Coast, the Port of Vitória is the second largest in the country in terms of to “reopen” the ports once again, this time to efficiency economic outlook and the social policies of the Lula gov- cargo value. In 2007 it handled 7.7% (US$22.6 billion) of the country’s foreign and professional management. ernment. Amongst these challenges I would highlight: the Basf of Germany imported US$634 million. All these imports trade. Vitória is one of the ports most likely to benefit from Brazil’s recent major off-shore oil discoveries. Various steps have already been taken. Amongst the increase in the volume of public and private investments are operated by Brazilian ports. At the end of September, Robert van der Zee, the director- fInvestments and main projects most relevant are the new rules for contracting dredging in port infrastructure and access; the complex questions R$90 million – Dredging, rock removal and improvement of terminals. president of Cargill in Brazil, went to Itajaí Port in the State of services, which can now include international participation. related to port labor and pension entitlements, including Santa Catarina to see the expansion projects underway and fTotal trade: US$20.71 billion (Port complex) This is a move to increase the scale and reduce the costs. complementary pensions; the greater and better promo- Exports: US$13.96 billion / Imports: US$6.75 billion to renew partnerships between the company and the port. Various tenders such as those at the ports of Recife, Rio tion of business and investment opportunities; and the fMain cargos Cargill is a major exporter of chicken meat and the country’s Loading – Petroleum + derivatives, ores, cast iron, steel, wood, pulp, marble, Grande, Santos and Rio de Janeiro are now underway, and speeding up and simplification of cargo clearing, under the eighth largest shipper. “Today we slaughter on average seven coffee, tea, vehicles, copper, nickel. Unloading – Wheat, iron and steel products, vehicles, malt, fertilizers, electri- the prospect is that in the first weeks of 2009 these works so-called “Paper-Free Port” project. million birds per week and 60% of our production comes cal appliances will be getting underway. From the naval procession staged by the Brazilian Navy from Santa Catarina,” the Cargill executive said, adding that f Cargo volume (in million tonnes/year) (Just the port) There are various examples of the new era which the in January of this year in front of the city of Rio de Janeiro, the company wished to make sure it would be able to export Total: 8.1 / Loading: 5.7 / Unloading: 2.3

its production smoothly. fSelected terminals government wants to bring to port management in Brazil, to the International Seminar promoted by the Ministry of Various major exporting companies that have their head- Portcel, Hiper Export, Oiltanking Terminals, TCG. for example: excluding port authorities from the national External Affairs in Brasília in November, there have been quarters in Brazil enjoy a substantial international presence. fPort authority privatization program (an action agreed with the Ministry innumerable events at all the ports in the country to recall Such companies include Petrobras, Vale, Braskem, Gerdau, Companhia Docas do Espírito Santo – Codesa Federal government (SEP) of Development , Industry and Foreign Trade); speeding up the historic and economic importance of the document Sadia and Aracruz Celulose, amongst others. Some of these fLocation the projects that are listed in the ports section of the federal signed by Dom João VI two centuries ago. companies operate their own port terminals in Brazil and Avenida Getúlio Vargas 556 – Vitória, Espírito Santo – CEP 29010-945 around the world. Petrobras is the country’s leading trader. Tel: 55 (27) 3132-7360; 3132-7303 government’s Program for Faster Growth; improved regu- With the new management model and the expectation Amongst other things it operates the largest liquid bulks ter- fDirectors latory definitions and heightened environmental concern; that civil society will come to see its ports as an indispen- minal in the Southern Hemisphere at São Sebastião Port in the Angelo José de Carvalho Baptista – Director-President a 2007 budget that was executed at levels the sector has sible element for economic growth, the SEP is seeking to State of São Paulo. The company was responsible for 14.5% never before experienced; the nationwide and international contribute, within its area of responsibility, to a new era of of Brazilian imports (US$19 billion) and 9.9% of Brazilian ex- promotion of projects and business opportunities; and the wellbeing and social equality. ports (US$14.4 billion). 6 7 PORT OF Rio de Janeiro PORT OF itaguaí PORT OF paranaguá PORT OF rio grande (State of Rio de Janeiro) (Sepetiba Bay – State of Rio de Janeiro) (State of Paraná) (State of Rio Grande do Sul)

Rio de Janeiro Port is located in the Guanabara Bay at the center of Brazil’s Itaguaí Port is located in the municipality of the same name, 80 km from the city One of the principal export channels for Brazilian grains (soy and maize), Located in the south of the country, the Port of Rio Grande has close ties to second biggest city. It is in the Southeast of the country, the region of greatest of Rio de Janeiro which is the state capital and Brazil’s second largest city. Itaguaí the Port of Paranaguá on the coast of the State of Paraná in Southern Brazil neighboring countries Uruguay, Argentina and Paraguay (members of the economic output. Rio de Janeiro is Brazil’s sixth biggest port and has excellent is close to the State of Minas Gerais, which is Brazil’s biggest mining region. The is generally regarded as the largest grains export facility in Latin America. It Mercosul free trade pact along with Brazil) and with the country’s southern infrastructure logistics, linking it to the country’s most important airports, port is connected to the country’s major industrial centers by highway, railroad handles grain from the South, Southeast and Center-West of Brazil as well as states. The port is geared to solid bulk, and is national leader for exports of soy highways and railroads. and airports. Iron ore constitutes 79% of total cargo at the port. from neighboring countries. The port’s public ethanol terminal is set to handle beans and rice. 30% of all ethanol exported from Brazil. fInvestments and main projects fInvestments and main projects fInvestments and main projects Ongoing – R$140 million – Dredging of the access channel; port security Ongoing – R$80 million – Dredging of access channel, security system, fInvestments and main projects Ongoing – R$135 million – Expansion of bay breakwaters, improvement of system; protection systems. infrastructure improvement, construction of terminals. R$200 million – Construction of three new quays, expansion and other works terminals and other works. Planed – R$150 million – (PAC-PND) Dredging to deepen the draft; Planed – R$130 million – (PAC-PND) Dredging in the vicinity of the port. for new fertilizer and container terminals and an industrial district. Planed – R$160 million – (PAC-PND) Dredging and deepening of port draft improved access. PAC-PND – R$53 million: dredging (2009-2010). from 14 to 18 meters. fTotal trade: US$14.60 billion fTotal trade: US$13.02 billion Exports: US$10.27 billion / Imports: US$4.33 billion fTotal trade: US$18.02 billion fTotal trade: US$13.66 billion Exports: US$7.85 billion / Imports: US$1.17 billion Exports: US$11.48 billion / Imports: US$6.54 billion Exports: US$9.93 billion / Imports: US$3.73 billion fMain cargos fMain cargos Loading – Iron ore, iron and steel products, containers. fMain cargos fMain cargos Loading – Ferroniobium, cast iron, vehicles, polyethylene, iron and steel Unloading – Bituminous coal, containers, coking coal, petroleum coke, alumi- Loading – Soy (grain, meal, vegetable oil), maize, ethanol, frozen meat, sugar, Loading – Soy, containers (tobacco, frozen chicken, resin, furniture, footwear, products, chemicals, paper, petroleum + derivatives, slate. num, zinc. wood, vehicles. rice), wood, paper, maize, fuels. Unloading – Vehicles, lubricating oils, locomotives, wheat, uranium, paper, Unloading – Fertilizers, petroleum derivatives, wheat, barley, salt, methanol, Unloading – Fertilizers, containers, fuels and mineral oils, chemical products, fCargo volume (in million tonnes/year) rubber, chemicals. vehicles. wheat, vehicles. Total: 38.9 (MBR private iron ore terminal handles 48 million t/yr) fCargo volume (in million tonnes/year) Loading: 33.1 / Unloading: 5.7 fCargo volume (in million tonnes/year) fCargo volume (in million tonnes/year) Total: 8.9 / Loading: 3.3 / Unloading: 5.5 Total: 37.5 / Loading: 25.7 / Unloading: 12.0 Total: 26.6 fSelected terminals Loading: 17.2 / Unloading: 9.4 fSelected terminals Shell, Esso, Petrobras. fSelected terminals Shell, Esso, Petrobras. 19 berthing quays. Cargill, Petrobras, Tevecon, Catallini, Dibal, Becker. fPort authority fPort authority Superintendency of the Port of Rio Grande – SUPRG. Superintendency of the Port of Itaguaí fPort authority fPort authority State government. Companhia Docas do Rio de Janeiro (CDRJ). Companhia Docas do Rio of Janeiro (CDRJ). Administração dos Portos de Paranaguá e Antonina – APPA Federal government (SEP) Federal government (SEP). Government of the State of Paraná fLocation Rua Acre, 21 – Rio de Janeiro, RJ – CEP 20081-000 Av. Honório Bicalho, s/n – Rio Grande (RS) – CEP 96201-020 fLocation Tel: 55 (21) 2219-8544; 2219-8545 – Site: www.portosrio.gov.br fLocation Mail: Caixa Postal 198 – Tel: 55 (53) 3231-1996 Rua Antonio Pereira 161 – Paranaguá, Paraná – CEP 83221-060 Contact: [email protected] Rua Antonio Pereira 161 – Paranaguá, Paraná – CEP 83221-060 Site: www.portriogrande.com.br Tel: 55 (41) 3420-1100 – Site: www.portsdoparana.pr.gov.br Tel: 55 (41) 3420-1100 – Site: www.portsdoparana.pr.gov.br fLocation fDirectors fDirectors Av. Rodrigues Alves 20 – Praça Mauá, Rio de Janeiro, RJ fDirectors Sinésio Cerqueira Neto – Superintendent Alexandre das Neves Pereira – Superintendent Tel. 55 (21) 2219-9542; 2219-9543 Eduardo Requião de Mello e Silva – Superintendent Tel: 55 (23) 3781-1940 Tel: 55 (41) 3420-1102 fDirectors [email protected] Adacio Carlos Pourchet de Carvalho – Superintendent Luiz Alberto de Paula César – Director for Business Development important for cargos of greater added value,” said José Ro- [email protected] Tel: 55 (41) 3420-1398 Brazil’s Foreign Trade, Selected Years [email protected] berto Serra, president of Companhia Docas, the São Paulo US$ b illions State company responsible for running the port. He said that Petrobras also operates ports outside of Brazil. In April this Year Exports Imports Balance total trade containerized cargo was becoming increasingly important for

year the company took control of the Nansei Sekiyu Kabushiki 1998 51.13 57.76 - 6.63 108.90 roughly 160 business groups generating 15% of GDP, public increasing the average value of cargo handled. refinery in Japan, which includes a port terminal for petro- 2000 55.11 55.85 - 0.73 110.96 and private investments in energy, petroleum, transportation, Given the importance of Santos, the Federal Government 2004 96.67 62.83 33.84 159.51 leum and derivatives with three quays and storage capacity 2007 160.64 120.62 40.02 281.26 logistics, basic sanitation and telecommunications should has authorized the private sector to carry out feasibility stud- for 9.6 million barrels. 2008 (Jan-Sept) 150.86 131.21 19.65 282.17 reach R$86.6 billion this year. Of this, R$13.1 billion goes to ies to duplicate port capacity at an estimated cost of around (+28.7%) (+52.4%) The Vale mining company is Brazil’s second biggest export- Forecast 2008* 208.00 183.00 25.00 401.00 transportation and logistics. Total investments in 2009 and R$9 billion. The expansion will take place in a region called er with sales of US$10 billion this year through September. 2010 should be around R$100 billion. However, this may not Barnabé-Bagres and will add a further 120 million tonnes to Growth of Brazil’s Foreign Trade Vale operates through six terminals in Brazil. It is one of the (1998-2008) be enough. “Demand for infrastructure in Brazil is growing the current 110 million tonnes annual cargo capacity. One of world’s leading mining groups and generates 30% of Brazil- 1998-2007 + 214% 108% 158% much faster than the speed at which services are expanding,” the main priorities of the expansion will be to meet the needs ian port movement. 1998-2008* + 306% 220% 268% said ABDIB President Paulo Godoy. of the massive petroleum and gas fields recently discovered This rate of growth places significant pressure on Brazil’s Source: Secex – MDIC. * Forecast CNI (10/08). Over the coming years Brazilian ports are set to invest offshore in the Santos basin. port, logistics and transportation infrastructure and this in an estimated R$19 billion of public and private funding in Santos is this year moving ahead with investment proj- turn creates interesting investment opportunities. In Septem- for investments in Brazilian ports. projects to expand, modernise, dredge, construct new quays, ects estimated to total R$1 billion with another R$1 billion ber of this year Arnaldo Schmitt, the superintendent of Itajaí In a bid to reduce bottlenecks in infrastructure, the Brazilian build terminals, expand access and so on. planned for 2009. Work includes dredging, constructing ac- port, presented the Federal Government with plans for port government is implementing its Faster Growth Program (Pro- Santos Port is the largest in Latin America and handles cess highways and improving existing terminals and building improvements totaling RS$152 million. “The expansion in grama de Aceleração do Crescimento – PAC). This specifies around 25% of Brazilian foreign trade, by value. In the period new ones. Today Santos has 64 berths and another 20 will be port activities has made it necessary to plan new projects that public and private investments totaling R$503 billion through January through September this year Santos moved total car- provided in the short term. will permit further development of the region,” said Schmitt. 2010 in energy, logistics and urban and social infrastructure. go worth US$68.81 billion representing growth of 30% over He submitted his plans to technical staff at Antaq, the Na- Specifically for logistics US$58 billion will be invested in ports, the same period in 2007, with exports of US$38 billion and International opportunities tional Agency for Water Transportation which is the official airports, waterways, highways and railroads. imports of US$30 billion. Santos plays a central role for trade. The Faster Growth Program for ports has allocated R$2.2 body regulating the sector, and to executives at the Special According to the Brazilian Association for Infrastructure “In addition to handling a major proportion of the commodi- billion of federal funding to develop the port system through- Secretariat for Ports (SEP), a presidential agency responsible and Heavy Industry (ABDIB), an organization which represents ties moving in both directions Santos is becoming increasingly out the country. It also encourages private investment in the 8 9 PORT OF são francisco do sul PORT OF itajaí Suape - industrial port complex PORT OF itaqui (State of Santa Catarina) (State of Santa Catarina) (State of Pernambuco) (São Luís – State of Maranhão)

This port handles large volumes of grains, frozen meat and petroleum. It is Brazil’s only municipally run port, Itajaí is the largest exporter of frozen and Fast growing port and industrial complex (textiles, chemicals, distribution cen- The Port of Itaqui is in the municipal district of São Luis, capital of the State of located on the Island of São Francisco do Sul on the north coast of the State of refrigerated cargos (the largest for frozen chicken) and Brazil’s second port for ters and ongoing projects for a refinery and shipbuilding yard, amongst others). Maranhão, and is the most important seaport in the North of Brazil. It is the Santa Catarina, in Southern Brazil. It is the country’s 10th ranked port in terms containers. The port is located in the municipality of the same name, on the Good infrastructure and fiscal incentives have already attracted over 70 country’s second largest port in terms of cargo volume. Itaqui is the center for of the total value of cargo handled. Half of the total cargo is generated by a north coast of the State of Santa Catarina in the South of Brazil. It handles companies, making investments in excess of US$1.7 billion. Suape is located grain and ore exports from the Center-North of Brazil. The port links to the rest Petrobras terminal. Brazil’s highest value-added cargos. at Ipojuca, of the country by the North-South Railroad, via the Carajás Railroad. 40 km south of Recife, the capital of the State of Pernambuco on the Brazilian fInvestments and main projects fInvestments and main projects Northeast coast. fInvestments and main projects Ongoing – R$90 million - PAC-PND – Dredging to 14 meters. Ongoing – R$80 million – (PAC-PND-Federal govt.) New access, terminals, Ongoing – R$200 million – Repair of quays; modernization and expansion dredging. fInvestments and main projects Planned – R$400 million (Public and private – R$200 million PAC): fTotal trade: US$5.76 billion Planed – R$160 million – Port expansion. In the port: R$200 million (PAC-PND-Federal govt) – Dredging and Construction of Maranhão grain terminal; expansion of infrastructure and Exports: US$3.42 billion / Imports: US$2.34 billion improvement of infrastructure, new terminals complex with railroad, waterway, dredging. fTotal trade: US$8.95 billion fMain cargos highway and airport. Exports: US$6.38 billion / Imports: US$2.57 billion In the industrial complex: R$10 billion – Refinery, shipbuilding yard, new fTotal trade: US$8.23 billion Loading – Soy, motor compressors, cylinder block heads, cylinders, wood, chick Exports: US$5.76 billion / Imports: US$2.47 billion meat, maize, furniture, ceramics, textiles. fMain cargos terminals, textiles complex, chemicals complex, etc. Unloading – Petroleum, fertilizers, wheat, copper, rubber, iron, steel, alumi- Loading – Frozen chicken, other meat, wood and paper, machinery and mo- fTotal trade: US$2.03 billion fMain cargos num, machinery for meat preparation. tors, ceramic products, apples, sugar, tobacco Exports: US$730 million / Imports: US$1.30 billion Loading – Iron ore, pig iron, soy, petroleum derivatives, copper, aluminum, Unloading – Machinery and motors, empty containers, chemical products, manganese. fCargo volume (in million tonnes/year) textiles. fMain cargos Unloading – Petroleum derivatives, coal, fertilizers, limestone, rice. Total: 12.9 / Port: 8.38 / Petrobras: 8.71 Loading – Fuels, iron ore, clinker, slag, sugar, drinks, plastics, iron and steel fCargo volume (in million tonnes/year) fCargo volume (in million tonnes/year) fPort authority products. Total: 7.3 Unloading – Fuels, diesel oil, chemicals, rice, petroleum coke, wheat, synthetic Total: 12.9 – Vale terminal: 72 (iron ore); Alumar terminal: 12.8 (pellets, baux- Administration of the Port of São Francisco do Sul Loading: 4.9 / Unloading: 2.3 ite). / Loading: 25.7 / Unloading: 12.0 Self-governing state company rubber. fselected terminais fPort authority fLocation fCargo volume: (million tonnes/year) Public quays, Teconvi, Dow Chemicals, Braskarne and Portnave terminals. Total: 6.4 / Loading: 2.08 / Unloading: 4.4 Empresa Maranhense de Administração Portuária - EMAP. Av. Eng. Leite Ribeiro 782 – São Francisco do Sul, SC – Mail: Caixa Postal 71 State Government Tel: 55 (47) 3471-1200 – Site: www.apsfs.sc.gov.br fPort authority fPort authority Superintendency of the Port of Itajaí fLocation fDirectors SUAPE – Industrial Port Complex Municipal government State Government Av. dos Portugueses s/n – Itaqui, São Luís, Maranhão – CEP 65085-370 Paulo Cesar Cortez Corsi – President Tel: 55 (98) 3216-6000 – Site: www.portodoitaqui.ma.gov.br Tel: 55 (23) 3781-1940 fLocation fLocation Gilberto de Freitas – Logistics Director Rua Blumenau, 05 – Itajaí, Santa Catarina – CEP 88305-101 Av. Portuária, Km 10 on Highway PE-060 – Engenho Massangana, Ipojuca (PE) fDirectors [email protected] Tel: 55 (47) 3341-8000; 2104-8000 – Site: www.portoitajai.com.br CEP 55590-000 – Tel: (81) 3527-5000 – Site: www.suape.pe.gov.br Antônio Carlos Lago – Acting President Tel: (47) 3471-1231 Tel: 55 (23) 3781-1940 fDirectors fDirectors Arnaldo Schmitt – Superintendent Fernando Bezerra Coelho – Director-President [email protected] sector. Acting via the SEP the government has set up the Na- Sidnei Aires – Director of New Business [email protected] tional Dredging Program (PND) which will steer R$1.2 billion pecém - industrial and port complex (State of Ceará) into dredging operations at 16 Brazilian ports. Another pro- the objective of work now being carried out at Itaqui Port gram called the Plan for Improving and Modernizing Port In- in Maranhão State which handles the second greatest cargo This industrial and port complex was inaugurated 2002 and already has two thermoelectric power stations, a tank storage system for petroleum derivatives frastructure will receive a further R$1 billion of investments. volume in Brazil. PORT OF Manaus and an LNG regasification terminal. It is located at São Gonçalo do Amarante, (State of Amazonas) In January of 2008, during official celebrations to mark the At the port of Rio Grande (in Rio Grande do Sul State) 60 km from Fortaleza, the capital of the State of Ceará in the Northeast of Bra- zil. Pecém was conceived with the goal of helping integrate regional industrial A major Amazon River port that handles importation of raw materials and parts 200th anniversary of Brazil’s historic 1808 decision to open projects to extend the breakwaters for an estimated R$280 activities with foreign markets. for the Manaus industrial tax free zone, an area that enjoys federal tax breaks up its ports to international shipping, Pedro Brito, the Special million and to deepen the approach channel for a further for companies, in particular in the electrical and electronic sectors. It is located fInvestments and main projects in the city of Manaus on the left bank of the Negro River, the capital of Secretary for Ports announced that the dredging sector would R$160 million are both included in the PAC program. These R$12 billion – in the complex Amazonas State. be opened up to foreign companies. “We are making space will make the port one of the deepest in South America with Petrobras premium refinery (US$11 billion) and Vale steel works (projected). fTotal trade: US$4.92 billion for international companies to increase competitiveness and a draught of 18 meters. The work will allow large vessels to fTotal trade: US$2.03 billion Exports: US$1.15 billion / Imports: US$3.77 billion reduce costs,” he said. dock so reducing freight costs and doubling the amount of Exports: US$730 million / Imports: US$1.30 billion fMain cargos fMain cargos Foreign dredging company have already won contracts at cargo handled. Loading – Fruit and seeds, vehicles, machinery and electrical goods, oils, Loading – Fruit, footwear, vehicles, chemical reagents, boilers, stone, chalk, cutlery, nuclear reactors, fuels, wood, charcoal, cereals, tin. the ports of Suape (Pernambuco), Fortaleza (Ceará) and Aratu In addition to relaxing the regulations in the dredging sec- cotton, cast iron. Unloading – Machinery and electrical goods, nuclear reactors, optical goods, Unloading – Fuels and mineral oils, iron and steel, cotton, chemicals. (Bahia) and now they will be able to bid for contracts in all tor the government is preparing changes to speed up con- vehicles, plastics, chemicals, cast iron, steel, rubber, glass, aluminum, ships. Brazilian ports. Between now and the end of next year, 15 cessions for private ports, seeking to reduce operating costs fCargo volume (in million tonnes/year) fCargo volume: 11.8 million tonnes/yr international tenders are likely to be published for dredging and encourage competition. “We want to encourage the Total: 2.2 / Loading: 590,000 / Unloading: 1.61 fPort authority fPort authority work at Brazilian ports for a total value of R$1.2 billion. At participation of private initiative in this sector and to this end Sociedade de Navegação, Portos e Hidrovias (SNPH) Cia. de Integração Portuária do Ceará – CearáPortos Amazonas State Government Recife in Pernambuco State an international tender process is we are working to put in place transparent regulations”, said State Government already underway worth R$30 million for dredging services to Dilma Roussef, the Presidential Chief of Staff who has overall fLocation fLocation Rua Marques de Santa Cruz 25 – Centro, Manaus (AM) – CEP 69005-050 deepen the approach channel from 9 to 11 meters. responsibility for the SEP. Esplanada do Pecém, s/n° – São Gonçalo do Amarante, CE – CEP 62674-000 Tel: 55 (92) 3621-4300; 3621-4301 – Site: www.portodemanaus.com.br The National Dredging Plan is in fact strategic for Brazil. In addition to investing in its traditional ports Brazil is de- Tel: 55 (85) 3315-1977 – Site: www.cearaportos.ce.gov.br fDirectors Contact: [email protected] Projects will allow major Brazilian ports to receive “Post-Pana- veloping two major new port and industry complexes. One is Rildo Cavalcante de Oliveira – Director-President fDirectors max” vessels measuring 318 meters in length with a capacity at Suape in the state of Pernambuco and the other is at Pecém Erasmo da Silva Pitombeira – Director-President for 92,000 tonnes deadweight (30% greater than the Pana- in Ceará, both on the Northeast coast. At Suape, industrial max vessels which currently operate in some ports). This is areas are being developed alongside the port and these have 10 11 PORT OF Aratu port of ilhéus (State of Bahia) (State of Bahia) Growth of Foreign Trade Stimulates Brazil’s third largest port for liquid bulks, Aratu is located in Todos os Santos Bay Ilhéus Port was initially linked to cocoa production in the region around the in the State of Bahia on Brazil’s Northeast coast. The port is equipped to handle municipality of Ilhéus on the southern coast of the State of Bahia, in the North- import and export of inputs for and products from the Camaçari petrochemicals east of Brazil. Today the port exports grains, in particular soy. There is potential Private-Sector Interest in Ports complex, the Aratu Industrial Center (CIA) and Ford Motor Company’s Camaçari to increase the shipments of wood pulp, mineral ores and fruit. In 2009 Ilhéus complex. could become the first organized port in Brazil to be awarded under concession to private management, given that it was included in the federal government’s Private investment fInvestments and main projects concessions program in October of 2008. Ongoing – R$80 million – Dredging to 14 meters. Planned – R$160 million – Expansion and new terminals fInvestments and main projects Companies operating public and private port terminals are investing heavily; R$4 billion – Initial agreement exists to build new port and intermodal f Total trade: US$5.6 billion complex with railroad, waterway, highway and airport. sector driven by reduction of logistics cost and entry of new players Exports: US$2.54 billion / Imports: US$3.06 billion fTotal trade: US$200.5 million f Main cargos Exports: US$157.89 million / Imports: US$152.61 million Loading – Fuels, mineral oils, organic chemical products, magnesite, iron ore. Unloading – Naphtha, fertilizers, copper, nickel, coal, petroleum coke, phos- fMain cargos phatic rock, caustic soda, aluminum, sulfur Loading – Soy, cocoa derivatives, cotton seeds, general cargo. By Luiz Gonzaga S. Neto The new model uses criteria similar to nals, where they can handle just their Unloading – Cocoa beans, industrial parts, general cargo. fCargo volume (in million tonnes/year) The Brazilian government has im- those existing in the Brazilian hydro- own cargo, and mixed-use private ter- Total: 38.9 – Port (public quays): 6.7; Dow Chemicals: 0.93; Gerdau: 1.3; fCargo volume: 756,000 tonnes/year proved the regulatory structure for the electric power sector, where companies minals, where they can handle cargo of Petrobras: 21.2. / Loading: 2.0 / Unloading: 4.7 fPort authority country’s port system to allow Brazilian take part in tenders to manage or con- third parties provided they also handle fPort authority Companhia das Docas do Estado da Bahia (Codeba) and foreign private companies to invest Companhia das Docas do Estado da Bahia (Codeba) Federal Government (SEP) struct a project. their own cargo at the same location. Federal government in constructing and operating ports According to Pedro Brito, the minis- Companies such as Vale, Petrobras, fLocation fLocation Rua Rotary, s/n - Cidade Nova – Ilhéus, Bahia – CEP 45650-000 and marine terminals under conces- ter in charge of the Special Secretariat Cargill and Bunge, amongst, others are Via Matoin, s/n, ZIP CIA – Aratu Bay, Candeias (BA) – CEP 43800-000 Tel: 55 (73) 3231-1200 – http://www.codeba.com.br/porto_ilheus.php sion, awarded via public tender. Decree for Ports (SEP), “the federal government already operating private terminals. Tel: 55 (71) 3602-5711 – Site: www.codeba.com.br/port_aratu.php fDirectors 6,620, signed at the end of October is responsible for investing in infrastruc- According to Fernando Antonio fDirectors Eduardo Melquiades Silva – Coordinator of Port Management by President Luiz Inácio Lula da Silva, Marco Antônio Rocha Medeiros – Ditector-President Tel: 55 (73) 3231-3318 ture because the Union is the conces- Brito Fialho, the director-general of the Tel: 55 (71) 3320-1212 [email protected] should help attract private investment sionary power, but private capital is ab- National Water Transportation Agency [email protected] of around US$5 billion in the coming solutely necessary for the ports and we (Antaq), various challenges are involved Alberto de Freitas Costa Filho – Coordinator of Port Management years. Tel: 55 (71) 3602-5709 cannot do without it.” The government in preparing the new port regulations. [email protected] 90% of that for petroleum. Angola, on the western coast of Law existing since 1994 has allowed is also preparing a Concessions Plan for These include implementing a new pol- Africa, is amongst the 20 biggest suppliers of Brazil, with sales private companies to operate port ter- new private terminals which should be icy for concessions and issuing a new of US$2.3 billion in the same period. minals that are destined for private use. ready in the coming months. Private general plan of new concessions, which already attracted 70 companies investing US$1.7 billion. This Exports to Saint Lucia were made through the ports of Before that, port terminals had to have companies already operate the so-called is currently being finalized. Other chal- is where the R$10 billion Abreu e Lima Refinery will be built Aratu, in Bahia State on the Brazilian northeast coast (US$700 the involvement of the public sector. exclusive-use or own-use private termi- lenges include creating new areas at as a partnership between Petrobras and PDVSA of Venezuela. million) and Macaé in Rio de Janeiro State in the southeast Other projects include the Atlântico Sul shipyard, a R$1.2 bil- of the country (US$800 million). Products from Angola were lion investment by the Camargo Corrêa Group. “Brazil’s inter- imported into Brazil through São Francisco do Sul Port, in the national trade is growing strongly, expanding at an average southern state of Santa Catarina, and the Suape Industrial- of 20% a year, and we have to discuss the prospect for Bra- Port Complex in Pernambuco State, in the northeast region. zilian ports to be able to handle that”, said Suape president Saudi Arabia is also amongst the 20 biggest importers from Fernando Bezerra Coelho, who is also the state secretary for Brazil: in 2008, January through September, US$370 million economic development in Pernambuco, speaking during the of frozen chicken was shipped to the Arab country, most of it Intermodal South America event held recently in São Paulo. through Itajaí Port in Santa Catarina State. At the Pecém port and industry complex Petrobras has Far from being exceptions, these are simply examples signed a memorandum of understanding to build a “Pre- of the sustained growth and diversification of origins and mium” refinery at a cost of US$11 billion. And Brazil’s Vale destinations of Brazil’s foreign trade. From January through mining company is set to build a steel plant costing US$1 bil- September of 2008, Brazil exported to 224 countries and im- lion in partnership with Dongkuk Steel of South Korea. These ported from 109 countries. New trading partners are joining investments together with other investments by federal and the list of Brazil’s more traditional commercial partners, who state governments will make these two ports amongst the for their part continue to expand their trade with the country. largest in the country. In the same period of 2008, exports to Japan grew 38.3% (to US$4.4 billion), while exports to Germany were up 24% (to Diversified growth US$6.6 billion) and sales to the United States were up 15% Saint Lucia, an island country in the Caribbean, is amongst (to US$21 billion). At the same time, sales to China were up the 20 largest destinations for Brazilian exports with purchas- 67% (to US$13.71 billion) and sales to Argentina were up es of US$2.1 billion between January and September of 2008, 33.2% (to US$13.78 billion). Santos, Brazil’s biggest port: a focus on investment by operators of private terminals 12 13 organized ports that can be offered in economist who is Director of Interna- the great majority of petroleum, deriva- At the end of last year the Brazilian ments, currently around €400 million, Norwegian company Odfjell Termi- concession to private companies, and tional Relations and Foreign Trade at tives, biodiesel and ethanol shipments. group Coimex started building Embra- are being directed to Brazil. nals will invest US$30 million to build continuing the process of authorization the São Paulo Federation of Industries. In 2008, Brazilian mining company port Terminal which is projected to be Reflecting a tendency by the world’s a terminal for warehousing liquid bulks for private terminals. Antaq is respon- “The main reason for this is that we Vale announced investments of US$4 the largest multi-use port installation in major shipping groups to become in- at Barra do Riacho in the municipality of sible for regulating and monitoring port have tripled our foreign trade in the last billion through 2012 to expand its six Brazil. Investments will be US$500 mil- volved in the operation of port termi- Aracruz, on the northern coast of Espíri- activities in Brazil. In 2008, it expected seven years and port investments have ports and port terminals in Brazil. The lion and the project is due to be finished nals, German group Hamburg Sud has to Santo State. The terminal will have to monitor and control 47 public ports not kept pace with this growth.” company is the manager of the Tubarão in two years. Embraport will be able to a 30% participation together with Bra- initial capacity for 35,000 cubic meters and 100 private use terminals (TUPs) Despite the significant demand for Port in Espírito Santo State which is operate around 10 million tonnes per zil’s Battistella Group (which has 70%) of ethanol tankage. including both maritime and waterway investments in the coming years the the world’s biggest iron ore terminal year mainly in solid and liquid bulks, in the construction of a mixed-use ter- terminals, making a total of 147 port Brazilian ports have been improving and Brazil’s biggest port in terms of containers and motor vehicles. minal at the Port of Itapoá on the north Interchange installations under Antaq control. their competitiveness. Celso Quintanil- tonnage. Tubarão is receiving modern- Dutch company Vopak Brastermi- coast of Santa Catarina State, with in- In addition to the growing volume Brazil also has public-use terminals ha, the Ports Superintendent at Antaq, ization investments of R$680 million. nais, which specializes in liquid bulks vestment budgeted at R$320 million. of private partnerships between com- which are currently operated by private said during a seminar at the Federal In 2007 Tubarão handled 104 million (petroleum and derivatives, gases and The terminal will handle the companies’ panies of different origins, Brazil is companies in areas leased within public Accounts Court (TCU) that in the pe- tonnes of cargo of which iron ore con- vegetable oils), operates four liquid bulk own cargo and that of third parties. It also seeing growing interchange with ports. The country’s private terminals riod 2003-2007, the cost of handling a stituted 103.5 million tonnes. Another port terminals in Brazil and is awaiting will have annual capacity for 310,000 international port administrators. Port are responsible for shipping the greater container in Brazil dropped by around terminal operated by Vale is Ponta da authorization to expand its berthing containers at three berthing quays and authorities from Holland, Belgium, Ger- part of solid bulk (mineral ore, particu- 53% while the cost of handling general Madeira in São Luis, Maranhão State quays. “We are very interested in in- is due to enter operation in 2010. many and the United States, amongst larly iron ore, and grains, particularly cargo fell 59% and solid bulks 56%. where the company shipped 81 million vesting in Brazilian infrastructure, par- Dutch company APM Terminals, others, have visited Brazilian ports this soy) and liquid bulks (petroleum and de- tonnes of iron ore. year to exchange experiences and ana- rivatives, ethanol and biodiesel). Public- BHP Billiton, the Anglo-Australian lyze investments. In April, a Dutch mis- use terminals handle the lion’s share of competitor of Vale, is preparing to build sion including representatives of almost general and containerized cargo, which a port terminal with capacity for 50 mil- all Dutch ports came to Brazil in the has higher value added. lion tonnes of iron ore a year. This will wake of a port cooperation agreement According to Antaq, private termi- cost an estimated R$900 million and signed between the two countries. One nals handle 63.1% of total cargo flow- will be located in Sepetiba Bay, within result was the start of a partnership ing through the national port system the area of influence of Itaguaí Port (RJ), between the ports of Rotterdam and (754 million tonnes), with 36.9% mov- the fourth biggest in the country. Santos. ing through public ports. However, car- The Brazilian Cosan Group, a major “Together with the Rotterdam Port go at the public ports is handled almost producer of sugar and ethanol, paid Authority we established three priori- entirely by terminals rented by private R$116 million this May to buy the Teaçu ties: revitalizing the port area of Santos; companies. This means, according to Armazens Gerais port terminal to export labor training; and technical questions the Brazilian Association of Port Termi- sugar at the Port of Santos in São Paulo related to port expansion,” said José Di nals (ABTP), that private companies are State. Vendor was the Nova América Bella, the former president of Codesp. responsible for shipping over 90% of company. The companies announced “We will receive technical counseling the country’s total cargo. Loading containers of German group the creation of a new joint venture Rotterdam: experts from the world’s largest port are giving advice on the project to double from the Dutch port about this last The Brazilian Association of Public- Hamburg Sud: investments of R$320 million called Rumo Logística to be controlled the size of the Port of Santos item. We hope that this interchange Use Container Terminals (Abratec), to build a terminal in partnership with the by Cosan Portuária. Rumo will have the will allow us to use the successful ex- Battistella group, in Santa Catarina State which has 13 members who between world’s largest shipping capacity for ticularly in ports,” said Frank Wisburn, headquartered in The Hague, is one of perience of Rotterdam in the expansion them own 15 terminals and handle 98% Among the factors explaining the drop sugar: 8.5 million tonnes per year. director-president of Vopak. “We have the world’s largest container terminal of the Barnabé-Bagres area in Santos (a of containers flowing through Brazilian in operating costs were private sector The Santos Ethanol Export Terminal told Codesp (the company which ad- operators and in May of this year took project to double the size of the port).” ports, says that the sector is growing investments in productivity and the im- (Teas) is a partnership between Cosan, ministers Santos) that we are ready to control of the Ceará Terminal Operator According to Ivo W. Opstelten, the fast. The country has evolved from 1.19 proved regulatory structure. Crystalsev and Cargill and is dedicated invest in the port.” (CTO), the main operator of the termi- mayor of Rotterdam whose city includes million containers in 1996 to four million to ethanol exportation. In August Co- Vopak is the world leader in tank nal at the Port of Pecém in São Gonçalo two thirds of the Dutch port, the recent containers 2006 and should reach seven Investments san announced it will construct and storage with installations in 30 countries do Amarante, 60 km from Fortaleza in port agreements signed between Brazil million containers in 2010. According Quintanilha said that private-use ter- operate an ethanol pipeline costing including the United States, Europe and the State of Ceará. CTO was adminis- and Holland should generate significant to Abratec president Sergio Salomão, minals require greater investments be- R$1.64 billion to connect sugar produc- Asia. In Brazil the company has two ter- tered by Maersk, which invested US$10 results. “The memorandums will pro- the companies operating container ter- cause they do not have the pre-existing ing regions in upstate São Paulo to the minals in Santos Port, one at Paranaguá million in the terminal. When Maersk duce close cooperation and consulting; minals have invested US$2 billion since infrastructure that is available at public port terminal in Santos. In addition to in Paraná and another in Aratu in Bahia. merged with the A.P. Moller group, Rotterdam and Santos are on opposite 1995 in structural work, equipment and ports. Massive investments are being reducing ethanol logistics costs by 35% It is also evaluating the purchase of a control passed to APM. Moller-Maersk sides of the Atlantic, one in Europe and training of specialized labor. undertaken by companies both at pub- to 40%, the ethanol pipeline could in- company at the Port of Suape in Per- currently has container operations at the other in South America, and we “Brazilian ports have improved but lic-use and private-use terminals. Addi- crease Brazilian ethanol exports from nambuco. Wisburn declined to disclose the Port of Itajaí (Santa Catarina) and is need each other. I am particularly talk- they still need a lot of investment,” tionally, Petrobras operates 15 private 3.5 billion liters a year to over 14 billion the value but said that a significant looking for new areas in the South and ing about ethanol, iron ore, fruit, grains, said Roberto Giannetti da Fonseca, an terminals in Brazil and is responsible for liters per year, the company said. portion of the company’s global invest- Southeast. fruit juices, meat and other products.” 14 15 Brazilian Ports: Open for Investment

Legal Security

New rules will allow Brazilian and foreign private companies to construct and operate ports under concession

By João Carlos Rodrigues The decree eliminates the need for the infrastructure which protects and Brazil is ready to receive new in- the investor to operate his own cargo provides maritime access to the port, vestments in the water transporta- through the port. In other words any for example groynes, breakwaters, tion sector. In addition to having one type of investor may bid for and be locks, maneuvering area and anchor- of the world’s longer sea coasts and awarded such a concession. Until now, age areas. a vast river network, the country has a private company could only con- The law also lays down the norms one of the most attractive and secure struct a private terminal to handle his which govern private initiative act- environments for attracting domestic own cargo plus that of third parties. ing in the ports sector. Investors en- and foreign investment: solid democ- In other words, the investing company joy the right to construct, refurbish, racy; strong and independent institu- necessarily had to use the port itself. expand, improve, lease or otherwise tions; and specific legal and regulatory Removing this constraint should boost derive commercial benefit from port frameworks for the ports sector. The investments in the sector. installations. Companies may sign leas- sector is supervised by The National Minister Pedro Brito, responsible ing contracts with the Union, in cases Water Transportation Agency (Antaq), for the SEP, said he hopes that with where they will be directly exploiting which is connected to the Special Sec- this new operational model Brazilian port infrastructure, or with a port con- retariat for Ports (SEP). ports will attract private investments of cessionaire. However, such contracts While Antaq is a state agency con- around R$19 billion through the next must always be awarded via public nected to the SEP, which is itself linked five years. The first ports to be offered tender when the company will be car- to the office of the President, it oper- to private investors under the new rying out activities in an area which is

ates independently from the govern- model in 2009 will be in Manaus, in located within the port. Manaus: one of the first ports covered by the Brazilian government’s new decree to attract private investments into the sector ment. the State of Amazonas, and Ilheus, in Brazilian legislation also determines In addition to counting with a legal the State of Bahia. that investors must require authoriza- gram for Leasing Port Areas and In- tion of the terminal. “They (the future changes will satisfy the concerns that structure that guarantees investors se- New investments will be protected tion from the government to install a stallations as a move to expand port port installations) must first be offered have prevented private investors par- curity, investment projects in the ports by the legal structure which the gov- small-scale public port, a cargo trans- operations and handle the growth of in public tender and there is no guar- ticipating more actively in the sector. sector will now enjoy an additional ernment has put in place for ports shipment facility or a private-use termi- cargo at organized ports. The goals of antee that the company which has pre- “The government needs private invest- stimulus: under Decree 6,620, signed sector, which is regulated by specific nal when these are outside the area of the program include: increasing opera- pared the project will necessarily win ments and wants to encourage them,” on the 30th of October this year by legislation which defines the role of an authorized port, or when the inter- tional performance and improving the the bidding,” the minister explained. the minister said. Before the end of President Luiz Inácio Lula da Silva, the the state. The Ports Law (No. 8,630 ested company holds legal title to the quality of port services; reducing port “The fact that you own a piece of land this year the government is set to an- government opens up the possibility of of 1993, with subsequent alterations) land even within the area of an orga- costs and consequently port charges; beside a river where there is a waterfall nounce a concessions plan which has Brazilian or foreign private companies gives the Union the right to exploit, nized port. encouraging fair competition in the does not give you the right to build a been drawn up following a detailed constructing and operating ports un- either directly or via concession, the Prior to signing a lease contract with operation and exploitation of port ser- hydroelectric power station; you have study of port requirements and invest- der a concession. organized ports in the country – note the Union or receiving authorization to vices; and environmental preservation to go through a process of public ten- ment opportunities. The government hopes that this will that Brazil uses the term “organized offer port services the interested com- within the area of the organized port. der within a formal plan of conces- However, Brito rejects the sugges- attract investors to expand the Brazil- port” to define one where the traffic pany must obtain formal approval from Companies will also be able to pres- sions.” The same thing will happen tion that all this represents a kind of ian ports system, along the lines of a and operations are under the jurisdic- the customs authorities and the appro- ent projects to exploit a potential new with port installations. “The fact that privatization of ports. “This would be model used for the construction of hy- tion of a port authority, supervised by priate municipal authorities where the port zone, as for example the state somebody owns a piece of land beside true only if we moved to a system of droelectric power stations: the winner a Port Authority Council to regulate undertaking will be installed. Addition- energy company Furnas and the pri- the sea will not give him the right to exclusively private decisions without any of the public tender will have the right port operations. The port is defined ally, investors must obtain prior ap- vate constructor Odebrecht did on the build a port wherever or however he interference of the government, hand- to construct and run the port, handling to include anchorages, docks, quays, proval of the Environment Secretary of Madeira River in the western Amazon wishes; the project must be in a con- ing over all port management to the third-party cargo. Concession contracts bridges, berthing quays, wharves, ad- the appropriate state, in the form of an where they are building a major hydro- cessions plan and he must win a public private sector. But this is something that will be valid for 25 years, with one pos- jacent land, warehouses, buildings and Environmental Impact Report (RIMA). electric power station. However, this tender,” the minister said. does not happen anywhere in the world sible extension for a further 25. internal circulation ways in addition to Brazil has created the National Pro- does not allow for immediate construc- According to the minister, the except Hong Kong,” the minister said. 16 17 Frequently Asked Questions

Leased terminals has the required minimum capital and 3. Maritime support shipping or port terminals are those which are not part the access options to the terminal of water-born transportation. Antaq that his company is financially sound. services, with an unrestricted vessel: of the area of a public port and have (highway, railroad, waterway and may also grant authorization to a 1) Can a foreign investor lease a This is done by producing documents R$2.5 million. been constructed or will be constructed pipeline); a general description of private individual – a businessperson port terminal? for the company itself and certificates 4) Must the investor present a by a private company or public entity the terminal (identifying installations, who offers such services in a A: A foreign company may issued by public bodies, for example detailed project of how he plans to handle or warehouse its own cargo areas, specifications and patios, plus professional and structured manner participate as a member of a Federal Income Tax Authorities. A operating in the sector? and also cargo of third parties, when the respective uses and capacities); – provided the person meets the consortium provided it does so via tender for leasing shall be won by the A: No. such cargos are destined to or coming specifications of the typical kind of necessary technical, economic and a subsidiary properly established company that offers the greatest lease from maritime transportation. vessel to be handled by the project, legal requirements of the specific in Brazil or as a minority member value. 5) What are the other main informing length, beam, draft and legislation. of a consortium where the lead requirements that the investor must 3) What are the legal requirements to capacity for cargo movement in tonnes; company is Brazilian. In either case meet? operate in the sector? a physical and financial schedule for 3) How can an applicant receive the leasing company will be subject Merchant Marine A: In addition to those listed above, A: The interested company the implementation of the terminal; authorization from Antaq? to the decisions of the Council of the and once it has received authorization, must submit a request to Antaq, and a description of the loading and A: The applicant must first submit Port Authority (CAP) at the port in 1) Is the sector open to any investor, the company must demonstrate that accompanied by documentation which unloading equipment at the terminal, a request to Antaq. This application question and will be required by law irrespective of origin? it is operating within the authorized proves its legal status and shows that with details of its capacity. must include proof that the applicant to hire workers via the Port Labor A: Yes, provided the foreign investor shipping sector and that it is paying all it is up-to-date with its tax obligations. is the owner of at least one self- Management Agency (OGMO), sets up a Brazilian company as detailed taxes and maintaining the appropriate Necessary documents include: the 5) Must private use terminals located propelled cargo vessel or of a barge the entity which is responsible for in Article 2, paragraph ll of Antaq technical and operational conditions company charter, statute or social outside the area of public ports comply and pusher-boat tow, flying the administering the supply of labor at Resolution 843. to continue operating as a shipping contract; a certificate attesting to the with the same requirements? Brazilian flag and duly registered a Brazilian port. company. fact that it is solvent; proof that it is A: Private use terminals installed with both the Marine Traffic System 2) What are the principal legal up-to-date with its obligations to the outside the area of public ports are (SSTA) of the Brazilian Navy and the 2) What are the first steps an requirements for operating in the Federal, State and Municipal Financial not subject to the requirements of the Marine Property Registry held by the investor should take to exploit a sector? Private-Use Terminals Authorities in the place where the Council of the Port Authority; neither Marine Court. The request must be terminal? A: To operate as a Brazilian company is constituted; a certificate are they obliged to hire labor via submitted in a standardized format A: The investor should make shipping company the investor 1) What must an investor do if he of ownership for the land; a certificate the Port Labor Management Agency and directed to the director-general a proposal to the port authority – must own a Brazilian-flag vessel of wishes to exploit a private-use terminal? stating that the company has no (OGMO). of Antaq. This format is available on the infrastructure administrator at an appropriate type for the kind of A: The investor must have an area debts to the Federal Government; the site of the agency (www.antaq. a public port – who will initiate shipping the company is planning of land adequate for installation of a and a statement from the appropriate gov.br). a tender process for a specific (Article 5 of Antaq Resolution 843). marine or waterway terminal and lodge Municipal Public Authority agreeing Inland Shipping (interstate available area (see Article 4 of Law The company must also have a sound a request to construct and operate such to the proposed use of the land or or international) 4) What are the operating 8,630 – The Ports Law). Then, the financial and economic situation a terminal with Antaq. To this end he construction of the terminal, amongst conditions? In other words, how must investor should present a pre-project (Article 6 of Antaq Resolution 843) and will be required to produce a series of others. The company must also supply 1) Which companies may operate in a company or businessman operate in to the port authority, which will be demonstrate that it up-to-date with documents and certificates relating to proof of technical ability. It must submit inland shipping in Brazil? inland shipping? responsible for drawing up a final its taxes by producing appropriate the company. Authorization is granted an appropriate environmental license A: Inland shipping is defined as A: The authorization requires project. This final project will then negative certificates (Article 7 of Antaq by the directors of the agency after issued by the appropriate federal or that using inland waterways (including the authorized company or be submitted to Antaq and to the Resolution 843). technical and legal analysis of the state agency, and an opinion issued rivers) for an interstate or international businessman to accept the principals Federal Accounts Court (TCU) for documents presented. by the appropriate marine authority journey. Only those companies or of free competition, and it is the approval. The project must also 3) What are the financial pre- approving the organization of marine businessmen legally authorized responsibility of Antaq to repress all receive environmental licensing requisites for an investor to operate in 2) What are the permissible types of space and the security of navigation in by Antaq to operate in specific practices which are prejudicial to before going ahead (see details on the sector? operation at private terminals? areas of responsibility of the terminal, hydrographic basins may offer this kind free competition. Additionally the the Antaq site – www.antaq.gov.br). A: Depending on the kind A: There are two types of private- amongst others. A complete list of of cargo transportation service. authorized company or businessman of shipping, the company must use terminals: exclusive or mixed requirements can be consulted on the is obliged to carry out the authorized 3) How is a leasing contract demonstrate various levels of minimum (see Antaq Resolution 157). Exclusive site of Antaq (www.antaq.gov.br) in 2) How can a company obtain such services in accordance with the renewed? net assets (Article 6, paragraph l, ll, of private-use terminals are installations Resolution 157. an authorization? specific operational characteristics, A: The renewal of a leasing Antaq Resolution 843) in addition to which do not form part of the area of a A: The applicant must be a Brazilian norms and regulations for the contract shall be the subject of an demonstrating a liquidity index greater public port and which are constructed 4) Must the investor present a company involved in inland shipping. sector. For the transportation of agreement between the existing than one. The limits are: or will be constructed by a private detailed project of how he plans This means a company properly petroleum, including bulk petroleum, investor and the port authority. This 1. Long-distance shipping: R$8 company or public entity to handle operating in the sector? constituted under Brazilian laws, with petroleum derivatives and natural must naturally happen during the million. and/or warehouse its own cargo A: The investor must submit a its headquarters in Brazil, which has as gas, the authorized company or extended life of the initial contract. 2. Coastal shipping: R$6 million. which is destined to or coming from descriptive memorial of the terminal its stated objective providing services businessman must also comply with With respect to guarantees, the maritime or waterway transportation. installations, including amongst other the norms established by the National investor must demonstrate that he In comparison, private mixed-use things: the geographical location; Petroleum Agency (ANP).

18 19 Airports, Railroads and Highways Help Make Brazilian Ports More Dynamic

Logistics

Government funding to interconnect ports, airports, highways, railroads and waterways will total R$58.3 billion

By Luiz Gonzaga S. Neto dedicated to the sector – signals the guideline for investments in the logistic The expansion of the Brazilian ports resumption of investments in Brazilian structure in the next 15 years. system which handles 90% of the logistics, with the goal of expanding The PNLT provides the Brazilian country’s foreign trade occurs at the intermodal connections in the country, transportation sector with a long-term same time as a vigorous process of in- integrating the domestic transportation strategic plan, something it has lacked vestment in the modernization and ex- networks and promoting the physical for many years. The plan foresees a de- pansion of the national transportation integration of South America. Projects mand for investments totaling R$172.4 and logistics infrastructure. Through currently underway involve the con- billion in transportation and logistics 2010 the Brazilian government pre- struction, upgrading, division and/or infrastructure in Brazil in the next 15

dicts investments of R$58.3 billion in renovation of 42,000 km of highways years, with R$72 billion of that due Imigrantes Highway: connecting Santos Port to São Paulo, Brazil’s biggest city highways, railroads, waterways, ports and 2,518 km of railroads, plus the ex- through 2011. At the end of Septem- and airports, as specified in its Faster pansion of 12 ports and 20 airports. ber, during a speech about the plan in tion will increase from 13% to 29%. ments projected at R$4.5 billion, both How the Cargo Transportation Growth Program (PAC). The country is At the end of 2006, the Brazilian São Paulo, the PNLT coordinator Mar- Pipeline transportation and air freight through 2010. Matrix Will Change conducting a major program of con- government launched the National Lo- celo Perrupato, who is also secretary will grow to 5% and 1% respectively. Current and Future Transportation Matrix The North-South Railroad has a cessions under which private compa- gistics and Transportation Plan (PNLT), for National Transportation Policy at the Highway transportation which current- 60 planned length of 3,100 km and cuts nies will assume responsibility for the the result of a partnership between Ministry of Transportation, explained: ly represents 58% of all cargo move- through the Center-West of Brazil. 50 management of services and the con- the Brazilian ministries of transporta- “The plan is a detailed socioeconomic ment will see its share drop to 33%. Hooking up with other rail networks, struction of new infrastructure in vari- tion and defense. The program was x-ray of Brazil and identifies the invest- However, the sectors of the economy 40 it will connect the port of Itaqui, in the

ous modes of transportation. prepared by the Center for Excellence ments by the federal and State govern- which account for large freight move- 30 State of Maranhão in the North of the The so-called “Transportation PAC” in Transportation Engineering (Cen- ments and private initiative that will al- ments such as agriculture, agribusiness country, and the port of Belém in Pará 20 – that part of the total PAC which is tran) and lays down the bases and the low the country to enjoy sustained and and mining should see their share of State also in the North, with the port of sustainable growth”. waterway, pipeline and railroad trans- 10 Santos in the Southeast. Main cargos The resources will be in- portation increase to 72%, with just to benefit from the North-South Rail- 0 vested in ways that will ra- 25% of this cargo continuing to move 2007 2025 road are mineral ores, in particular iron tionalize and optimize costs by road. This will happen with growing Highways Pipelines ore, and grains, in particular soy. Some throughout the national logis- participation from private initiative. Railroads Airports stretches of the North-South Railroad tics structure, seeking a new According to information from the Maritime + waterways have already been placed under private equilibrium of the country’s National Department for Transporta- Source: National Plan for Logistics and concession and others will be priva- Transportation (PNLT) – Centran: ministries cargo transportation matrix tion Infrastructure (DNIT), the Brazil- of Transportation and Defense tized in the coming years. The South- and making growth compat- ian railroad network (excluding urban ern stretch of the railroad with three ible with environmental pres- trains) has a track network of 29,800 sub-stretches cuts through the States ervation and the reduction of km of which 28,500 km is operated by PAC, published in June of this year, the of Tocantins, Goiás and São Paulo to- regional inequalities. private companies. Various projects are federal government foresees conces- taling approximately 1,500 km and is According to the Ministry underway to improve the rail network sions to private initiative of 1,524 km the subject of a concession auction of Transportation, in 15 years including rail loops around major ports, of railroad in 2009 and 2010. Various planned for March of 2009. time railroads will account for lines to connect specialized production major structural railroad projects are The New Trans-Northeast railroad 32% of the Brazilian cargo in some regions directly to the port sys- currently underway, two of which are measuring 1,718 km will connect the transportation matrix, com- tem and connections between rail net- the North-South Railroad with a bud- ports of Pecém, in the State of Ceará, pared with 25% just now, works and ports, cities and States. get of R$6.4 billion and the New Trans- and Suape, in the State of Pernambu- Road-rail integration: Brazil is investing in improved logistics while water transporta- In the fourth annual report on the Northeast Railroad with private invest- co, to the port of Eliseu Martins, in the 20 21 is Brazil’s third ways, for example Regis Bittencourt cludes investments totaling R$3 bil- tion and to reduce costs. now generated from fuel oil. Distribution of Funds most impor- between the state of São Paulo and In the biofuels sector, the govern- Demand for investment in transportation infrastructure lion for the sector through 2010. The The PAC foresees the construction tant exporter of Paraná, and Fernão Dias between São goal is to increase capacity of Brazilian of 4,526 km of natural gas pipelines ment hopes to complete the country’s Period Mode of length (km) Funds total transportation / number (R$ millions) investments grain. The new Paulo and Minas Gerais. airports by 40 million passengers per for an investment of up to R$12.5 bil- first ethanol pipeline by 2010, directly terminal will of- “Brazil is developing and there is a lion, including all areas of natural gas connecting producing regions around Highways 19,743 42,296.00 year, from 118 million to 158 million 2008/ Railroads 4,099 16,969.00 fer neighboring lot to do, particularly in the infrastruc- per year, and to increase cargo capacity transportation infrastructure. To this the municipality of Senador Canedo 2011 Waterways 3,363 2,672.00 72,700.00 Mercosul coun- ture sector,” said José Carlos Ferreira from 100 million to 191 million tonnes end the government has drawn up in Goiás State (Central Brazil) to the Ports 56 7,301.00 Airports 13 3,462.00 tries (Argentina, de Oliveira Filho, president of OHL Bra- per year with the construction of four Plangas – the Plan to Bring Forward port of São Sebastião on the São Paulo

Period Mode of length (km) Funds share of total Paraguay and sil. “We believe in the potential of Bra- new cargo terminals and the expansion Gas Production – which calls for heavy coast. This ethanol pipeline will stretch transportation / number (R$ millions) investments Uruguay) an ad- zil,” he said. of others. investment in natural gas production 1,150 km and will cost US$1 billion. Highways 43,203 74,194.00 43,0% ditional outlet to The private companies taking on At Porto Alegre in the capital of Rio and gas pipelines. The country cur- Meanwhile Transpetro, a Petrobras Through Railroads 20,256 50,556.00 29,4% the Atlantic. these six highway concessions will Grande do Sul State, the federal gov- rently has a network of 5,600 km of subsidiary, is studying the construction 2023 Waterways 14,489 12,807.00 7,4% Ports 169 25,162.00 14,6% “Making this make initial investments estimated at of a two-directional, mul- Airports 40 9,695.00 5,6% project a real- R$706 million, while total investments tifuel duct linking Cuiaba, Total Brazil 172,414.00 100,0% ity is essential through the 25-year contracts are pre- Mato Grosso State, to the Source: National Plan for Logistics and Transportation (PNLT) – Centran: to developing dicted to reach R$17.3 billion. Other Getúlio Vargas Refinery ministries of Transportation and Defense the Paraná coast important projects involving federal, and the Port of Paranaguá, and to expand- state and private funding are under- both in Paraná State, for an ing public ports way, for example the Highway Loop estimated cost of R$2 bil- State of Piauí. Later these ports will be in the state,” said Eduardo Requião, round Rio de Janeiro and the Beltway lion. This pipeline will carry connected to the Itaqui ports system. superintendent of the Paranaguá and around São Paulo. diesel oil and gasoline from The railroad has capacity to transport Antonina Ports Administration (APPA), In May of 2008 the federal govern- the refinery to Cuiabá, with 30 million tonnes of cargo per year which is the state agency responsible ment started work on the main stretch fuel ethanol and biodiesel (soy, biodiesel, fruit, ethanol and min- for port administration. of the R$1.12 billion Rio Highway Loop moving in the opposite di- eral ore, etc). “With this railroad Suape which will connect the Port of Itaguaí, rection. will be connected to all the neighbor- Highways fourth largest in Brazil, in the State of ing states so improving the flow of Brazilian highways are currently the Rio de Janeiro, with the city of Rio and Waterways cargo and reducing operational costs,” country’s most important means of car- with seven states in the Southeast and Here, the priority is to said Suape President Fernando Bezerra go transportation and will receive PAC Center-West. The project will reduce construct more waterway Coelho. investments of R$33.4 billion through truck traffic in urban areas and will terminals, to undertake Various specialized transportation 2010. This will go to making divided generate around 5,000 jobs during maintenance to ensure the corridors are also under study. One of highways, to upgrading highways and construction. navigability of waterways, these is the so-called “Chicken Rail- to building new ones. A major process The São Paulo Beltway is a major and to improve the quality road” connecting the town of Chapecó is now underway to privatize the man- highway circle around the country’s Natal Airport: intermodal integration to improve logistics of waterway fleets. Invest- to the port of Itajaí, both in the State of agement of federal highways; it in- biggest city. It will avoid cargo vehicle ments will come from the Santa Catarina which is Brazil’s biggest volves the concession to private opera- traffic having to pass through the São ernment is investing R$220 million to gas pipelines, which will be expanded Merchant Marine Fund. chicken meat producer. Another proj- tors of 4,083 km of highway. In 2009, Paulo capital when heading for Santos build a new logistics complex in the to 11,000 km through 2010. One of Most of the investments are des- ect is for the Inter-Ocean Rail Corridor the government will pass three more Port on the coast. The total project is airport and to lengthen the runway. the largest projects is the now-building tined to the Amazon region with the connecting the Pacific to the Atlantic, federal highways totaling 2,066 km in budgeted at R$3.6 billion using federal At Vitória, the capital of Espírito Santo Urucú-Coari-Manaus pipeline in the construction of 40 waterway terminals, running from Chile through Mato Gros- the states of Minas Gerais and Goiás and state funding. In March of this year State, new passenger and cargo termi- Amazon, which requires investments the duplication of access to Itaqui Port, so do Sul in the Brazilian Center-West and in the Federal District to the pri- the now-open western stretch of the nals are under construction for a total of around R$3.5 billion. and the completion of locks at the then on to the ports of Paranaguá, in vate sector. Investments in these con- Beltway, the first to be built, was auc- investment of R$380 million. The proj- “We will complete construction and Tucurui Dam on the Tocantins River. Paraná State, and to Santos. cessions are estimated to reach R$4.1 tioned as a concession to the company ect should enhance multimodal trans- assembly in December of this year and “The infrastructure projects included in Another project to integrate the billion. Consórcio Integração Oeste, led by the portation using the port of Vitória, the commercial operation should start in the PAC, the highway concessions, the ports systems within the Mercosul free In February of 2008, the National Companhia de Concessões Rodoviárias second most important in the country, September of 2009,” said Maria das modernization of the railroad sector, trade region was announced in January Agency for Land Transportation signed (CCR). The company will pay the state increasing the volume and value of car- Graças Silva Foster, Gas and Energy Di- the Merchant Marine Fund and other of 2008 by the Paraná State govern- concession agreements with private R$2 billion over two years for the con- gos handled. rector at Petrobras. The new gas pipe- initiatives are detailed in the National ment. It involves constructing the so- companies for six stretches of high- cession. line in the Amazon will make it possible Plan for Transportation and Logistics called “Mercosul Port” with an initial way totaling 2,600 km. Five of these Pipelines to transport an initial 5.5 million cubic (PNLT) and are examples of federal investment of R$400 million, using highway stretches were won in auction Airports Brazil is investing in pipelines to meters per day of natural gas to the government actions to improve infra- public money. The port will be con- by Spanish company Obrascon Huarte Air freight still accounts for just a carry petroleum, gasoline, ethanol and Amazon market. This will be used prin- structure logistics in the country,” said structed in Pontal do Paraná which lies Lain (OHL Brasil) and include some of small proportion of the Brazilian cargo mineral slurry. The aim is to reduce the cipally for power generation in Manaus Marcelo Perrupato of the Ministry of 40 km from Paranaguá port, which the country’s principal federal high- transportation matrix but the PAC in- pressure on other modes of transporta- substituting a large part of the power Transportation. 22 23 Arteries for Development

Waterways

Home to the world’s largest river system, Brazil is investing to develop its waterways network. The goal is to greatly expand cargo volumes

By João Carlos Rodrigues the Amazonas-Solimões, Madeira and ing annual cargo growth averaging Brazil has no less than 42,800 km Parnaíba (in the North); the Tocantins- around 12% a year since 1998. “The of rivers, of which some 30,000 km is Araguaia (in the Center-West) and the government is investing in rock remov- potentially navigable but is underused São Francisco (in the Northeast). Ad- al and channel widening in the south- and could make a much greater con- ditionally, another waterway is in the ern stretch of the waterway between tribution to economic development. planning stage, the Tapajós-Teles Pires the Paraguay and Paraná rivers to per- Just a little over 10,000 km is used in the Center-North of the country. mit navigation for vessels drawing 2.5 commercially, transporting around 45 “Brazil is working to expand the meters,” he said. million tonnes/year on eight water- use of waterway transportation be- In 2007 the waterway handled 4.3 ways. Now, the government is carry- cause it is more economical and better million tonnes of cargo, including grain ing out a series of investments in an from an environmental point of view,” (650,000 tonnes of soy and 43,000 effort to promote commercial naviga- said Adalberto Tokarski, the engineer tonnes of wheat), sugar, fertilizer, die- tion on the other 20,000 km, seeking who manages the Department for De- sel and other products. The works will to boost total cargo capacity on the velopment and Regulation of Inland allow for navigation from Hernandarias Fernando de Noronha: the archipelago is protected by federal legislation country’s rivers to no less than 160 mil- Navigation (GDI) at the National Water on the Paraguay to the Itaipu Lake on lion tonnes/year. Transportation Agency (Antaq). “Barge the Paraná River. From there, it will be Part of the money being invested to transportation emits 90% less carbon possible to go up the Paraná and Tietê At Peace With the Sea modernize the sector is detailed in the monoxide into the atmosphere (com- rivers as far as the Barra Bonita dam federal government’s Faster Growth pared with highway transportation),” 225 km northwest of São Paulo city. The Environment Plan (Plano de Aceleração do Cresci- he said, underscoring the environmen- Expectations are that this will increase mento – PAC). This allocates R$1.8 bil- tal advantages of waterways. the volume of cargo handled. Strong environmental legislation and good programs by companies, NGOs and lion to ports and waterways in the pe- The GDI is responsible for projects “In addition to rock removal and riod 2007-2010. Using these funds, the now being carried out and those still channel widening, we are also invest- public institutions all help ensure that Brazil preserves its marine biodiversity country will carry out work on seven under study. Tokarski coordinates a ing in dredging projects to make it waterways: the Tietê-Paraná and Para- group of technicians who monitor possible to operate larger tows and guay-Paraná (both of which are in the progress and assess the opportunities provide greater operational safety,” South and Southeast of the country); for carrying out new projects in the Tokarski said. By Timóteo Lopes it has enormous petroleum riches lying to researchers in many countries, the sector. Working with the support of the Brazil has been blessed with enor- beneath the seabed and has started a consequences may be irreversible. The Tokarski em- National Department of Transporta- mous biodiversity, amongst the great- campaign to preserve ecosystems in inescapable logic is that Brazilian seas phasized how the tion Infrastructure (DNIT), a branch of est and most valuable of any country the South Atlantic. face the same kind of risk. waterways sector the Ministry of Transportation, Antaq in the world. Now it is paying close at- Warning signals are already flash- Given the imminent threats there in Brazil is evolv- is also conducting studies for extend- tention to environmental requirements ing. The truth is that all around the have been some speedy actions to re- ing and creating ing various other waterways: the Par- and taking action to protect its marine world the growth of cities, the ex- strict environmental damage. In Octo- investment op- naíba on the border of Goiás and Mi- system. At the same time the country pansion of factories, the increase ber of last year for example Governor portunities. One nas Gerais states; the Rio Grande on is investing to modernize and expand of population, fishing and of pollu- Jose Serra of São Paulo State created good example of the border of Minas Gerais and São its ports, putting into practice an envi- tion – in other words, the impact of three protection areas covering over this is the coun- Paulo states; and the Paraná River on ronmental management policy which man on the environment – is placing one million hectares of ocean lying try’s largest wa- the stretch between Paraná and São gives pride of place to prevention and at risk the health of the oceans and along the São Paulo State coastline. In terway system, Paulo states. “We are looking at the the minimization of damage. In the may lead to the extinction of innumer- practice, the state government gained the Tietê-Paraná possibility of building locks to extend same way that the country is treat- able marine species. Human activities the power to ban predatory fishing

A barge of the Caramuru company carrying soy on the Tietê-Paraná Waterway, which the waterway by at least 1,000 km,” ing port modernization as an urgent are altering the complex and delicate in these places and to block activities Waterway: lower costs and less emission of greenhouses gases has been enjoy- Tokarski said. matter, Brazil has recently discovered biodiversity of the oceans. According which could damage or pollute the 24 25 environment, for example spear fish- that sets foot on Fernando de Noronha establishing a channel of communica- ing or real estate development. bears his or her share of responsibility tion with society to provide informa- The government measure was tak- for preserving the environment. tion about environmental solutions so Synergic Interventions en at a moment when the São Paulo The Rocas Atoll Biological Reserva- that local people know what is really coast is experiencing an economic tion was created in 1979, also off the being done. Port-City Integration boom, thanks to the discovery of Northeast coast of Brazil, and is in- sub-salt petroleum and also the large cluded in the same UNESCO citation. Environmental concern isn’t Projects to modernize and expand Brazilian ports are breathing new life into volume of investment in ports in the It is the only atoll in the Atlantic Ocean limited to the seas. Brazilian port cities and offering a better standard of living for local communities region. “We will not allow ships to and has unique ecological importance, seaports are also increasingly continue dumping their garbage and not only for its extremely high bio- protected. oil into the sea,” said State Environ- logical productivity but also because Another good example comes from ment Secretary Xico Graziano. “Our it is home to various species, both as the Port of Rio Grande in the South of By Timóteo Lopes local community and tourists. A replica with the redevelopment project while islands will now be as tightly protected a feeding and breeding ground. The Brazil, where modernization and envi- Just take a look at Barcelona. The of one that was used in the last centu- preserving the architectural heritage.” as Fernando de Noronha.” numbers are impressive. Researchers ronmental concern have gone hand- revitalization of its docklands almost 20 ry, this runs through the streets of the The old buildings were transformed The archipelago to which the sec- have so far cataloged 147 species of in-hand since 1997 when the port years ago has transformed a previously old center offering a living lesson in the into commercial and cultural venues retary was referring lies some 350 km fish and 110 species of macroalgae. received the first operational license chaotic reality into a revolutionary ex- history of the city. covering an area of 23,000 m2 lying off the Northeast coast of Brazil and is Rocas is also home to Brazil’s largest granted for port activities by Ibama, ample of urban integration that is now This is just the beginning. Secretary beside the Guajará Bay, and each ware- colony of marine the Brazilian Institute for the Environ- being copied by many cities around Sergio de Aquino, responsible for Port house has a specific theme. “The city birds, totaling ment and Renewable Resources. Rio the world. Winning the right to host and Maritime Affairs in Santos, said of Belém realized that it could not sim- 150,000. The atoll Grande was also the first Brazilian port the 1990 Olympic Games handed Bar- that today’s old, abandoned ware- ply turn its back on its port and today is also the second to conduct environmental studies and celona an exceptional opportunity to houses may soon provide the citizens the area has gained new life,” Correa most important prepare reports of environmental im- restructure and modernize its old, run- of Santos with a very different envi- said. place in Brazil for pact, and this has made it a national down port with projects that combined ronment. The legendary old port area, The Port of Suape in Pernambuco, Green Turtles to benchmark. The port also created an economic development with quality said Aquino, will become a tourist at- Northeast Brazil, is another benchmark. lay their eggs. For environmental department which is of living. The local city authorities in- traction with theaters, cinemas, restau- Although the Suape project basically all these reasons, responsible for various projects and vested billions of euros in infrastructure rants and hotels. follows the model of a port integrated the island is a fo- preservation programs. “The principle projects, modernization and expansion The renovation of the historic cen- with an industrial area, local residents cus for constant function is to monitor the quality of of public highways and also in gymna- ter of Santos has brought new life to have not been overlooked. In October research and envi- the water, the sediment and organ- siums and sporting facilities that were various magnificent buildings, for ex- 2008 the Pernambuco State Planning ronmental educa- isms,” explained Celso Elias Corradi, a used for the Olympics and afterwards ample the old Coffee Exchange, built and Research Agency (Condepe/Fidem) tion. technical environmental advisor. “En- available for the city as a whole. “Bar- 1914, which today houses the Cof- presented its plan for the development At Santos, Bra- vironmental management is not seen celona is the best example,” said Rio fee Museum, and the Railway Station of the strategic territory of Suape, Sea turtles: a protected species, cared for by the Tamar Project zil’s biggest port, here as an expense, but rather as an de Janeiro urban planner Antonio Luiz which was inaugurated 142 years ago. which is the starting point for planning it is easy to see investment.” Barbosa Correa. “The economic and The centerpiece project of the redevel- the port-industry complex and the cit- a model for environmental protection, the care being taken with environ- Acelor Mittal Tubarão, a steelworks urban dynamism of Barcelona today is opment however will be the museum ies round about. so much so that in 2001 it was includ- mental management. Environmental operating in the steel products termi- due in great part to its revitalized port dedicated to soccer legend Pelé, who Among the various points covered ed by UNESCO in its World Heritage policies and activities are developed nal in the Port of Praia Mole, next to area which is modern and integrated played for most of his career with the in the plan, the ones that attract most list. Fernando de Noronha is divided by Codesp, the São Paulo State Port Tubarão in the State of Espírito San- into the urban landscape.” city club. All the personal historic items attention are for expanding the ac- into a National Marine Park and an En- Authority which has responsibility for to, is also investing in environmental Barcelona is an inspiration for the of the world´s greatest footballer will cess routes to the port, increasing the vironmental Protection Area. In each Santos and which restructured its in- protection. Safeguards start with the movement in various Brazilian cities be brought together in a museum that number of integrated terminals in the area the environment is protected in a ternal operations to incorporate an management of waste materials and to promote greater integration with is likely to be installed in a renovated state, the need to build 85,000 popular way that allows species to coexist with environmental management program. include worker training and control- their respective ports. The project for building in the port area. dwellings to house port and industry rational human occupation. It created a specific environmental ling the amount of smoke which the revitalization of Santos Port in São workers, and the inclusion of the cit- The exceptional environmental area which evaluates different ways to equipment and vehicles emit in the Paulo State is a good example. There, New life in the Amazon ies of Sirinhaém and Ribeirão into the conditions of the archipelago attract conduct dredging, manage the risk of port area. “The environment is now the main historic buildings in the old Brazil’s best example so far in re- strategic territory of Suape. the attention of ecologists worldwide accidents and take precautions about seen in a new light,” said Luiz Anto- city center – located close to the port – developing a port area is Belém, the In the city of Angra dos Reis on the and of preservation organizations that the ballast water which ships making nio Rossi, manager of the company’s are being renovated by city authorities capital city of Pará State in the Ama- coast of Rio de Janeiro State, the goal fight to protect the natural environ- unladen international journeys often environment division. “Environmental in partnership with private companies. zon. “We did everything as simply and is to increase the number of tourists by ment. The title awarded by UNESCO take on board in highly polluted areas benefits are enormous and generate Companies that invest in revitalization as practically as possible,” said urban implementing a series of urban renova- represents a “seal of approval” that and then pump out again while in the economic gains,” he said, pointing to projects receive a tax discount. planner Correa. “Three warehouses tion projects. The first of these is the increases the responsibility of all those port of Santos. Other concerns for the the changes which have been made in City authorities have installed a from the last century were converted restoration of the Mercado Redondo – who visit or live in such an ecological Codesp environmental area include the cabotage system to reduce traffic tram car service to further enhance the and now house commercial, leisure literally, the “Round Market” – one of sanctuary. The idea is that everyone increasing vigilance about disease and congestion and fuel consumption. coexistence between the port area, the and cultural activities all in keeping the main historic buildings in the town, 26 27 Expanding the Knowledge Base

Seminar

The Brazilian Ministry of External Relations is organizing a meeting with 20 international and national specialists to identify bottlenecks and opportunities at Brazilian ports

By João Carlos Rodrigues countries and offering a forum to ex- lation of companies supplying services The Brazilian ports sector is respon- change experiences. According to the of a higher value added in places with sible for handling 95% of all the coun- MRE the event will help Brazil speed up access to various modes of transporta- try’s foreign trade. Last year Brazilian the modernization of its ports, making tion, for example maritime, waterway, imports and exports totaled US$217 them operate more efficiently. railroad, highway and airport. billion, comprising US$132 billion in “The ports sector is of strategic im- One of the speakers on the theme exports and US$85 billion in imports. portance for Brazil to fully develop its of logistics is Jordi Fornos Assens. In With 8,500 km of Atlantic sea coast international economic potential. More the working paper that he will present and almost 43,000 km of rivers Brazil than 80% of Brazil’s foreign trade goes at the seminar, Assens deals with the wants to make these numbers even through the ports. It is therefore neces- criteria and tools of analysis and mea- Santos Port (above) and the Coffee Museum building: peaceful coexistence greater. As part of the strategy to sary to make a real effort to modern- surement which are appropriate for the maximize this potential the Ministry of ize the country’s port infrastructure port sector. The paper indicates the ad- will replace the existing patio in the city port development project. These are External Relations (MRE) is promoting a and bring it into line with the current vantages of developing logistics zones. center. Once this area becomes free, a to improve operational efficiency and major event, an international seminar demands of international trade, which Another panel at the seminar will two-kilometer wall currently separat- to improve the quality of life of the called “Opening of the Ports to Friend- is becoming more and more sophis- debate the importance of technological ing the historic city center from the sea surrounding community. In May of ly Nations: 200 Years of Trade and Co- ticated,” said DPR Director Minister innovation in the ports sector. Speakers along the Lapa Quays will be demol- this year the port authority signed an operation.” Henrique Sardinha, explaining the ob- will discuss the need for customs and ished. agreement with the São Paulo devel- The seminar will bring together 20 jectives of the event. police inspectors to clear cargo quickly. According to Fernando Jordão, the opment company (Companhia Paulista Brazilian and international specialist in “We have selected themes for the To this end, specialist say, it is essen- mayor of Angra dos Reis, this will ef- de Desenvolvimento – CPD) which is an the sector, plus Brazilian and foreign seminar which are related to the areas tial to use state-of-the-art technology, fectively turn the city more towards the agency of the São Paulo State Govern- authorities, to debate subjects such where Brazil has the greatest need for for example computerized systems and sea, improving access for beachgoers ment, and with the state secretariat as port technology, logistics, the inte- modernization to keep pace with the electronic control of ships. The goal is and fisherman and as a consequence of transportation, to prepare licensing gration between ports and cities and progress of international trade. These to make routine operations less bu- encourage the growth of tourism. projects and a development plan for commercial management. The event themes were defined as priorities by the reaucratic and faster. The communi- the port. is scheduled for November 25th in the SEP, Antaq and the Ministry of External cations system at ports is a factor for and the demolition of the Mercado Cruise liners In Rio de Janeiro, Antonio Luiz Bar- auditorium of the Itamaraty Palace in Affairs, which received input from Bra- competitiveness, according to Javier Quadrado – literally, the “Square Mar- Itajaí, a municipal port, is proceed- boza Correa is another urban planner Brasília, and will help the Brazilian gov- zilian Embassies in leading port cities Gallardo Martínz who will present a ket” – substituting this with a seafood ing in a similar manner. In October of who draws inspiration from the Span- ernment and private sector identify around the world,” Sardinha explained. working paper on the subject. restaurant to be run by a fisherman’s this year it used the monthly meeting ish experience, and seeks to emulate existing bottlenecks in the ports sector The SEP and Antaq are partners with Port infrastructure will also be dis- co-operative. The project also calls for of the Port Authorities Council (CAP) it. Director of urban planning at the and collect suggestions on how to im- the Ministry of External Affairs in the cussed during the seminar. Efficient renovation of the Casa Laranjeira, built to announce a project for a port and Pereira Passos Institute, Correa believes prove systemic performance. organization of the seminar. port infrastructure has a crucial role to in 1832. City authorities are granting tourism complex. The project includes that the revitalization of the Rio de Ja- The event is being organized by the Brazilian port logistics is one of the play in the cost-benefit relationship of exemption from building taxes for local revitalizing a piece of land measuring neiro port can be even better than Bar- MRE’s Trade Promotion Department main subjects to be discussed at the the sector, the DPR said. According to residents and shopkeepers who restore 30,000 m2, building a new pier to re- celona. After all, he says, the Rio port (DPR) in partnership with the federal seminar. The government is aware that the MRE, specialists recommend the the frontage of their buildings in the ceive ocean liners, and providing all the has an area of 170 hectares which is government’s Special Secretariat for reducing the cost of cargo logistics is es- installation of electronic systems to historic center. necessary infrastructure for embarka- a considerable urban asset and is in a Ports (SEP) and the National Water sential for Brazil to obtain greater gains monitor dredging, and say that dredg- In another venture, the Angra dos tion and disembarkation of tourists. prime geographical location. Also, Cor- Transportation Agency (Antaq). It will in cost efficiency and to improve the ing services should be contracted for Reis city authorities will offer the local The São Sebastião Port Authority, rea thinks that – just like Barcelona – provide an opportunity to discuss ways country’s rate of sustainable growth. payment by result. All this would im- port authority an area of 300,000 m2 which is responsible for administration Rio de Janeiro could make use of major to secure investments for the Brazilian Specialists are betting on zones of lo- prove the conditions for navigation on in the Japuíba neighborhood to build a of the Port of São Sebastião on the São sporting events to jump-start the revi- ports sector, while helping expand the gistical activities to resolve the prob- waterways. new storage patio for port cargo. This Paulo coast, has two objectives for its talization of the port region. dialogue with port authorities in other lem. These would facilitate the instal- The invited specialists will also be 28 29 Paranaguá Port, in the State of Paraná: one of the main routes for exporting grains

discussing the environmental advan- will also explain which measures need tors to participate in the seminar. In this tages of waterway transportation as to be taken so that there can be syn- process of establishing contacts, Brazil compared to highways, railroads and ergy between port activities and day- has also sought bilateral cooperation to air transportation. Experts say that pre- to-day life in the places where ports are further develop its ports sector. serving the environment has a direct located. “We have organized business mis- impact on the efficiency and compe- The historic seminar commemo- sions to the leading international port tiveness of ports. This, they say, will rates an important landmark in the centers to attract investments, technol- make it easier to obtain environmental end of the colonial system, when Brazil ogy and know-how,” the minister said. licensing and will improve the integra- became free from Portuguese domi- The MRE said that promoting the tion between ports and cities. The Bra- nation and could effectively integrate Brazilian ports sector in such leading zilian government and the businessmen with international production and international centers has helped to in the sector want to hear the experi- trade systems as a sovereign nation, modernize it, and the growth in cargo ence of other countries and apply this and the DPR has been working for al- movement is a demonstration of this. in Brazilian ports where appropriate. most a year to mark this moment. In In 2007 Brazilian ports and terminals Another matter that will figure 2007 the department organized busi- handled around 754.7 million tonnes largely during the discussions is the ness missions to Singapore, Shanghai representing an increase of 10.9% role of ports in the day-to-day life of (China), Hamburg (Germany) and Le over the previous year, while the total the cities where they are located. Spe- Havre (France) to promote the event. volume of cargo transported by the na- cialists in the ports sector and in urban Ports Minister Pedro Brito and Antaq tional ports network was 692.8 million development say that public policies Director-General Fernando Filho par- tonnes. for cities with ports must include proj- ticipated in these missions. Thanks to the foreign missions, ects and actions that take into account This year Itamaraty has promoted Sardinha said, Brazil has established an the activities undertaken by the ports. additional missions to spread the word agreement with Holland and is negoti- This synergy is essential to developing about the mega-event. Brazilian gov- ating one with Spain. “Working groups the regions around the ports. ernment officials and businessmen are being created with these strategic One of the speakers to address this from the sector have visited ports in partners to identify and recommend question will be Jorn Walters, of Ger- Los Angeles, Houston and New York in cooperation projects. By means of such many. In his working paper, Walters the USA, Dubai (United Arab Emirates), initiatives, the Ministry of External Af- will explain how port-city integration Copenhagen (Denmark) and Tokyo (Ja- fairs has contributed to the process of works at Hamburg, in Germany. He pan) to invite their directors and opera- modernizing Brazilian ports.” 30 31