Paranaguá Port channel to receive R$ 1 billion from FMM and serve as model for Santos

Paranaguá receives 2,600 ships per year, primarily handling solid bulk cargo such as soybeans and animal protein (Claudio Neves/Gcom/Portos do Paraná/Disclosure)

The bidding process for the concession of the access channel to the Port of Paranaguá, in Paraná, scheduled to take place in August at the São Paulo Stock Exchange (B3), gained a new incentive this Thursday (3rd). The Board of Directors of the Merchant Marine Fund (CDFMM) approved a project that allocates R\$ 1.089 billion from the FMM for the investments required for the concession.

According to the National Secretary for Ports, Alex Ávila, who requested priority allocation of funds for the access channel of the Port of Paranaguá, the project's approval is expected to attract more participants. “We have created a solution that encourages competition, as potential investors can factor into their calculations—prior to the auction—that they will have access to special financing rates and conditions if they win the bid,” he explained.

The future concessionaire will have the discretion to decide whether or not to use the available FMM funds. To do so, it will only be necessary to resubmit the request to the Board of Directors, including the specific project to be implemented along with a detailed budget.

Model According to Alex Ávila, the concession of the Paranaguá access channel — the first of its kind for a Brazilian port — will serve as a model for other auctions to be held later this year, such as for the ports of Santos, Itajaí (Santa Catarina), and Bahia. “The concession of access channels brings predictability to the productive sector, especially within the context of developing Brazil’s port infrastructure”, he added.

Benefits The concession will also bring greater efficiency to port operations in Paranaguá. The channel depth will be increased from 13.5 meters to 15.5 meters, boosting the port's capacity to accommodate larger vessels and increasing cargo throughput. Currently, Paranaguá receives 2,600 ships per year, with a focus on solid bulk goods such as soybeans and animal protein.

Each additional centimeter of draft in the access channel equates to an increase of 60 tons of cargo in a ship’s hold. “We will see a substantial gain. In addition to the economies of scale that will result from an increase in the number of ships”, added the National Secretary for Ports.