Waterway transport emerges as a pillar of the energy transition in Brazil

Maritime transport, like inland waterway transport, is less polluting than trucks and can further evolve with fuel switching (Sílvio Luiz/AT)

A country that needs to clearly define which strategy it will follow in the energy transition, especially in the waterway sector, by leveraging its potential. This is the key message following the publication of the latest edition of the Logistics Bulletin prepared by the Observatório Nacional de Transporte e Logística (ONTL), of Infra S.A., which highlights the potential of waterway transport for the energy transition of Brazilian logistics.

The document shows that the high energy performance of the inland waterway mode results from its ability to move large volumes of goods using less energy per ton transported. In addition to environmental benefits, this feature also helps reduce logistics costs, lessen the impact on highways, and strengthen the competitiveness of productive sectors.

One figure illustrates the capacity of waterway transport in the country’s energy transition: cargo movement via waterways can reduce carbon dioxide (CO2) emissions per ton-kilometer by up to 22 times compared to those generated by road transport, depending on the type of cargo and route.

“You can accommodate far more cargo than in a single truck, or even a combination of trucks in road transport, when you scale it up. And Brazil presents many competitive advantages for this mode. An extensive navigable coastline, with maritime transport predominating in exports, for example”, says Infra S.A.’s Superintendent of Market Intelligence, Lilian Campos.

She also cites other national strengths, such as the National Logistics Plan, which projects growth in cabotage shipping and inland waterways. However, challenges remain.

“It is possible to see all this capacity for emission reductions. Regarding the environmental maturity of ports, not all have the same profile. Emissions inventories are still limited. In addition, there is insufficient infrastructure to support alternative fuels, and we still have to deal with climate-related issues. Brazil has hydrological seasonality, meaning not all rivers are navigable year-round. There is also the need to carry out dredging operations”, she adds.

International targets

Infra S.A. also highlights international decarbonization targets for the waterway sector. These range from a 20% reduction in total emissions by 2030, increasing to 70% by 2040, and reaching so-called Net Zero by 2050. However, achieving these targets requires specific measures, as the superintendent notes.

“Brazil has many opportunities. But as an exporting country, it is essential to align its fleet and port infrastructure with international standards in order to remain competitive in regulated markets. If it fails to achieve this alignment, it may face additional costs, which could, in some way, restrict commercial operations.”

Among the measures aimed at achieving Net Zero is the Navigation Environmental Performance Index (IDA-Nav), an initiative developed by Infra S.A. to assess and monitor the environmental, social, and governance performance of navigation operations in the country. Another important step was last year’s regulation of the BR do Mar program, designed to promote cabotage shipping (domestic coastal shipping).

“This regulatory framework supports an important mode of transport that is extremely efficient and outperforms both rail and road transport in terms of energy intensity”, Lilian Campos adds.

Maritime transport, like inland waterway transport, is less polluting than trucks and can further evolve with fuel switching.

COP30

According to Pedro Guedes, Bio-solutions and Fertilizers Specialist at the Instituto E+ Transição Energética, the 30th United Nations Climate Change Conference (COP30), held in November last year in Belém, marked a milestone consolidating Brazil’s role in the debate on decarbonization solutions, including in waterway transport.

“Brazil found an opportunity to shape international discussions and to address its own domestic waterway modes. This helps build technological and market presence for these (decarbonization) solutions. Often, (green fuel) still costs more than conventional fuel, which implies the need for planning to establish a pathway that effectively enables these solutions. In our case, this largely involves biofuels. The world wants to see what we intend to propose”, he concludes.