China and Brazil Strengthen Port Construction Cooperation

In the new version of the "Accelerated Growth Plan" recently released by the Brazilian government, the development of efficient and sustainable transportation is one of the areas that has received the largest investment amount, with an estimated investment amount of 349.1 billion Brazilian reals (1 RMB equivalent to 0.68 Brazilian reals). Under the framework of this plan, out of 363 actions and projects supervised and implemented by the Brazilian Ministry of Ports and Airports, 137 are port projects. In recent years, Brazil has vigorously developed its port economy through various measures such as improving supporting infrastructure, upgrading port management levels, and expanding ports. Chinese enterprises are strengthening cooperation with Brazilian ports in various aspects to assist in the construction and development of local ports.
Brazil has approximately 7400 kilometers of coastline, and ports play an important role in import and export trade, especially for exported products such as soybeans, crude oil, and iron ore, which are mainly transported through seaports. According to the Secretary of State for Ports and Waterways in Brazil, Fabrizio PierDomenico, 95% of Brazil's import and export trade is conducted through ports, which are an important part of the logistics chain in agriculture, industry, and services.
A latest report released by the Brazilian National Centre for Trans Atlantic Navigation shows that compared to some countries with large port complexes, Brazil is about 15 years behind in port infrastructure construction. Among them, the insufficient depth of port waterways is one of the biggest bottlenecks in the industry, and Santos Port, the largest port in Brazil, processes about 500000 TEUs less each year as a result. The CEO of the center, Souza, stated that Brazil needs to increase investment in related fields due to the increasing requirements for draft depth for the new generation of ships. To improve transportation capacity, the Santos Port Authority has planned to carry out dredging of Santos Port starting next year, increasing the water depth of the port from the current 15 meters to 17 meters.

In the process of upgrading port infrastructure and optimizing operational capabilities, Brazil continues to expand cooperation with Chinese enterprises. In August this year, COFCO International, a subsidiary of COFCO Group, held a groundbreaking ceremony for the STS11 terminal expansion project at Santos Port. The expanded terminal will become one of the largest terminals at Santos Port. Santos Mayor Rogelio Santos stated that the project will help Santos residents fulfill their dream of revitalizing the old port, create employment opportunities for the city, and promote sustainable development.

The second largest port in Brazil, Paranagua Port, also cooperates with Chinese companies in various aspects. Since 2012, China Communications Construction Group Shanghai Navigation Bureau Brazil Company has been responsible for the dredging, maintenance, and infrastructure dredging work of Paranagua Port. By expanding and deepening the waterway, the maximum navigable vessel of the port has been increased from 50000 tons to 100000 tons, resulting in a significant improvement in the port's operational efficiency and capacity. After acquiring Paranagua Port Container Terminal Operating Company in 2018, China Merchants Port Holdings Co., Ltd. has greatly improved the port's throughput capacity through investment in expanding the terminal and increasing berths. Paranagua Port received the largest fertilizer loading capacity of cargo ships in January this year. Former Operations Director Luis Juniors stated that due to investment in infrastructure in recent years, Paranagua Port has been able to receive larger and heavier cargo ships. The latest data shows that from January to October this year, the export of goods from Paranagua Port increased by 15% year-on-year, and it is expected that the annual import and export will increase by 6.2% year-on-year.
The first phase of the Asu Port natural gas complex project, in which China National Electric Power Investment Corporation (NEPCO) is involved, began commercial operation in 2021 in the city of San Joao da Barra, Rio de Janeiro. The second phase of the project is expected to begin operation in 2025. In addition, in April this year, Prumo Logistics, the main shareholder of Asu Port, signed an agreement with State Power Investment Brazil to jointly develop clean energy power generation projects such as solar power generation, offshore wind power, and green hydrogen in Asu Port.
Rogelio Zapronia, CEO of Prumo Logistics, visited China twice this year and excitedly showed reporters the recent footage of Qingdao Port captured on his phone. "I am amazed by the level of development of Chinese ports," Zanpronia said. In recent years, Chinese enterprises have actively participated in the upgrading of infrastructure in Brazilian ports and terminals, and China's investment, advanced technology, and management experience have effectively improved port operation efficiency. "I am full of expectations for the prospect of strengthening port cooperation between Brazil and China.".