Omar Nasser, from Fiep*
Curitiba – The Arab market is arising as one of the most promising destinations for vehicles produced in the vehicle hub of Paraná (southern Brazil), considered the second largest in Brazil. According to figures supplied by the Ministry of Development, Industry and Foreign Trade, between January and October this year, shipments to the Middle East and North Africa through Paranaguá Port, the main port in the state, totalled US$ 21.3 million, an increase of 20.3% over the US$ 17.7 million registered in the same period last year.
This year, in just ten months, vehicle exports to the Arab market through Paranaguá Port exceeded the volume for the whole of last year. And this growth is not by chance. "The vehicle hub is diversifying its exports to emerging markets, especially to the Middle East and Latin America," pointed out Júlio Suzuki, conjectural analysis coordinator at the Paraná Institute of Economic and Social Development (Ipardes).
When the carmakers – Renault/Nissan, Volkswagen/Audi and Chrysler, the latter having terminated its activities in Brazil in 2001 – installed themselves in the metropolitan region of state capital Curitiba, in the mid 1990s, the preference was for supply to traditional markets. One example was the Volkswagen/Audi production – now just Volkswagen – turned mainly to the United States.
With a change in international conjecture, the head offices decided to win new markets. In this new strategy, the Middle East and North Africa have been generating growing interest. According to Suzuki, higher oil prices have been promoting an increase in demand for imported goods in producing countries. This greater demand includes Brazilian vehicles. "There is potential for greater exports due to the increase in income," explained the Ipardes economist.
The vehicle hub of Paraná is made up of 518 companies, including five carmakers (Renault, Nissan, Volkswagen, Volvo and Ford/New Holland). Between January and October, the transport material sector of Paraná – which includes the automotive sector – exported US$ 1.9 billion, growth of 19% over the same period last year, when foreign sales totalled US$ 1.6 billion. Last year the sector, which employs 30,500 people in the state, answered to 14.2% of industrial sales in Paraná.
Port structure
With the objective of supplying the five carmakers installed in the metropolitan region of Curitiba in a more agile manner and improving services to customers abroad, Paranaguá port is investing. In 2008, there should be an increase of 67% in the vehicle movement capacity, which should rise from 150,000 to 250,000 vehicles a year. This is possible due to the incorporation of a new area, of 33,000 square metres, which will serve as a patio for manoeuvres.
From January to November, the increase in vehicle movement at the maritime terminal of Paraná was 58%, with expansion of 40% in exports and 109% in imports. For the time being, four patios receive the vehicles traded abroad: two public and two private, with a total static capacity of 9,000 vehicles. The new area will make it possible to supply another 2,000.
Investment in the improvement of vehicle export service infrastructure at the port is not taking place in an isolated manner. "This is work that is being promoted with carmakers and with private organisations," stated Cláuber Candian, head of the Operations Department at Paranaguá and Antonina Port Administration (Appa), the organisation responsible for the two maritime terminals in Paraná.
*Federation of Industries of the State of Paraná. Translated by Mark Ament
