São Paulo – The year of 2010 presented very positive results for Santos Port, the largest in Latin America, responsible for 26% of the Brazilian balance of trade. By the end of the year, the cargo throughput should reach a record 96 million tonnes, 6 million more than the estimate for early this year.
"This growth is very significant. The situation of the port is following the entire country growth and the development of Santos and the surrounding area, boosted by discoveries of more oil [in the pre-salt layer]," said Renato Ferreira Barco, Planning director at the São Paulo State Port Authority (Codesp), which manages the port. "According to our cargo demand, by 2024 our throughput should be 230 million tonnes. We are going to practically triple the throughput, calculating starting last year," added Barco.
He explained that the study requested by Codesp, concluded in late 2009, works as a true manual for what is to be done. "Now we can plan the destiny of the port considering what to do for the next 15 years. We may obtain information about the cargo throughput to be channelled to the port and about the investment necessary for this cargo to be received or shipped and, mainly, about whether the port can receive such cargo movement," he explained.
Forecasted investment in the port is expected to reach US$ 6 billion by 2024, including public and private funds. The site counts on large projects, like the construction of the Embraport Terminal, in association between DP World, from Dubai, and the Brazilian Odebrecht and Coimex.
Arab investment
The terminal should start operating in 2013 and promises to be the largest in Latin America. Investment is expected to reach 2.3 billion reals (US$ 1.4 billion). The first phase, to receive 1.6 billion reals (US$ 940 million), forecasts civil works and port equipment. DP World has a 28% share.
"DP World is coming to add much to the operational question as it is one of the main port operators in the world. That is very welcome in a work of this size. This experience has already been of great assistance in the development of these projects," said Regina Tonelli, Quality, Health, Work Safety and Environment manager at Embraport.
The project, to generate 1,100 direct jobs, includes a 1,100 metre dock, tow liquid bulk docks, broad retro area and container storage area of 370,000 square meters.
The terminal’s annual capacity should reach 2 million TEUs (twenty foot equivalent units) and 2 million cubic metres of ethanol. "It is very significant cargo volume that should add to the throughput capacity of Santos Port," said Regina.
Currently, an industrial area is being developed, land is being claimed, dikes are being built and inputs produced abroad are being purchased, mainly geopipes to be installed during dredging.
Further improvement
Other general improvement on Santos Port has already begun. This year the port was dredged to increase the depth of the canal from 13.3 metres to 15 metres and the broadening to 220 metres, currently at the final phase, allowing for the arrival of large vessels. Investment is approximately 23 million reals.
The works on Perimetral Avenue, on the right bank, is also advancing with the conclusion of strategic stretches for road access. Regarding the Perimetral Avenue on the left bank, works should begin in the first quarter of 2011.
"The next step should be the completion of these two access routes, creating two express lanes, fundamental for integration and development of the terminals," he explained. This investment should reach 493 million reals (US$ 290 million).
Some works are already concluded. This is the case with terminal 12 A, for vegetables, where the container area has been expanded.
Cargo operators are also investing in the port. Santos Brasil, the largest container operator in the country, has boosted its capacity by 500,000 TEUs. Investment totalled 285 million reals (US$ 168 million). Next year, the company should invest around 36 million reals (US$ 21 million) in the purchase of equipment.
The study requested by Codesp also showed that, despite the liquid bulk and chemical products in bulk being mainly shipped through two terminals – Ilha Barnabé and Alemoa -, this is still not enough. The executive at Codesp said that two new docks should be built "to improve the fluidity of this cargo". Forecasted investment is 100 million reals (US$ 59 million) over a year and a half.
The greatest destinations for shipments from Santos Port were the United States, China and Argentina. The Arab countries, however, already stand out among the 20 main importers. Saudi Arabia is in 14th place, Egypt in 15th and the United Arab Emirates in 17th.
*Translated by Mark Ament
