Board allocates over R$ 11 Billion to finance naval sector projects

Investment will be strategic for the decarbonization of logistics (FreePik)

The Board of Directors of the Merchant Marine Fund (CDFMM) has approved the allocation of R\$ 11.97 billion to finance 32 private projects for modernizing the naval sector. These initiatives cover the construction, modernization, conversion, dry-docking, and repair of vessels, as well as improvements to shipyards and port terminals. The announcement was made last week.

Among the approved projects, the National Bank for Economic and Social Development (BNDES) has approved financing of R\$ 3.7 billion for LHG Logística Ltda. The funds will be used to build 400 barges and 15 push boats for the hydro-transport of iron and manganese ores along the Paraná and Paraguay rivers. The vessels will be produced at six Brazilian shipyards over the next four years, generating approximately 5,500 direct and indirect jobs, with most of the resources allocated to the North and Northeast regions.

Expansion The project will enable the expansion of ore transport from Corumbá (MS) via the waterway to the Nova Palmira terminal in Uruguay. This is expected to significantly reduce greenhouse gas emissions compared to road and rail transport modes, contributing to the decarbonization of Brazilian logistics.

Jobs The Minister of Ports and Airports, Silvio Costa Filho, states that the approval of the project will strengthen the naval industry and create jobs in the North and Northeast regions, as well as enhance regional integration with Paraguay, Argentina, and Uruguay. The national section of the Paraguay Waterway was prioritized in the General Grant Plan (PGO) and may be converted into a concession in the coming years.

The Merchant Marine Fund, administered by the Ministry of Ports and Airports and federal public banks, aims to promote the development of the merchant marine and naval construction and repair industries in Brazil.