THE CASE STUDY OF
BRAZIL
ANDRE DE FAZIO, MSc
PORT DEVELOPMENTS IN
AN EMERGING COUNTRY
São Paulo, May 2014
ANDRE DE FAZIO, MSC
Academic Record:
MSc - Maritime Economics and Logistics (MEL)– Erasmus Univ. Rotterdam (EUR)– Holland
Post Graduate in Business Administration – Getulio Vargas Foundation - FGV/SP – Brazil
B.S. in Civil Engineer – Catholic University– PUC Campinas
Professional:
Current: EcoRodovias Group – Logistics Planning Manager – Brazil.
UFSC - National Plan of Port Logistics - PNLP - Technical Head - Brazil
CMA CGM GROUP / Terminal Link - Manager for Terminal Investments – Brazil
CSN/ Sepetiba Tecon - Commercial Manager – Brazil
P&O Nedlloyd - Engineer – The Netherlands
ODEBRECHT GROUP - Civil Engineer – Brazil
Others:
Speaker
Speaker
Speaker
Speaker
Speaker
Speaker
-
PIANC / SMART RIVERS CONFERENCE– Maastricht – Holland- 2013
TOC AMERICAS - Panama – 2012
TOC AMERICAS - Panama – 2011
Maritime Economics and Logistics Decennial Conference – EUR - Rotterdam, 2010
15th Brazilian Congress of Civil Engineers – Brazil – 2009
XXI COPINAVAL - Pan-American Congress of Naval, Maritime Transportation and Ports, 2007
Director of the Infrastructure Department of FIESP (Industry Federation of SP State)- Brazil
Co-Founder and Director of the Committee of Young Entrepreneurs - CJE - FIESP
Member of the Advisory Board of the Regional Council of Engineers and Architects- CREA-SP
2
AGENDA
- Introduction
- The Brazilian Paradox:
- powerful emerging economy x lack of infrastructure
- Trade opportunity and challenges
- Brazilian Case Study
- Conclusion
3
INTERNATIONAL TRADE (X7 BTW 1993-2013)
Brazilian trade balance (Exports +
Imports) – 1993-2013* US$ bilion FOB
4
BRAZILIAN INTERNATIONAL
RANKING ON LOGISTICS (1/2)
Performance Index
LOGISTICS LPI
Logistic Performance Index – World Bank
The average of 7 evaluations, with results that vary between 1 and 5
Brazil
LPI
5
Singapore LPI = 4.19
Singapore LPI = 4.09
First Place
Second Place
4
Brazil
Brazil
3
LPI = 3.20
41st. place
LPI = 2.75
61st. place
2
Afghanistan LPI = 1.21
Somalia LPI = 1.34
Last place
Last Place
2010
SOURCE: World Bank, 2012
Approx. 30th. position
In 2022 among the 10
Best
LPI = +/- 3.90
2012
Brazil
LPI = 3,13
45st.place
1
2007
LPI = +/- 3.45
TARGET
by 2012
5
BRAZILIAN INTERNATIONAL RANKING ON
LOGISTICS (2/2)
35
3,28
If all items graded at same level, Brazil
would be better ranked
6
BRAZILIAN PORT SYSTEM
- 34 Public Ports
- 129 Private Terminals
Port of MANAUS
Port of SANTARÉM
Port of MACAPÁ
Port of BELÉM
Port of VILA DO CONDE
RORAIMA
AMAPÁ
AMAZONAS
PARÁ
MARANHÃO
Port of ITAQUI
Port of PECÉM
Port of FORTALEZA
Port of AREIA BRANCA
Port of NATAL
CEARÁ
Port of CABEDELO
Port of RECIFE
Port of SUAPE
RIO GRANDE
DO NORTE
PIAUÍ
PERNAMBUCO
ACRE
TOCANTINS
RODÔNIA
SERGIPE
BAHIA
MATO GROSSO
Port of MACEIÓ
Port of SALVADOR
Port of ARATU
Port of ILHÉUS
Port
of BARRA DO RIACHO
GOIÁS
Port of VITÓRIA
Port of FORNO
MINAS GERAIS
Port of NITERÓI
MATO GROSSO
Port
of RIO DE JANEIRO
DO SUL
Port of ITAGUAÍ
SÃO PAULO
Port of ANGRA DOS REIS
Port of SÃO SEBASTIÃO
PARANÁ
Port of SANTOS
Port of ANTONINA
SANTA
Porto de PARANAGUÁ
CATARINA
Port of SÃO FRANCISCO DO SUL
RIO GRANDE
Port of ITAJAÍ
DO SUL
Port of IMBITUBA
Port of PORTO ALEGRE
Port of PELOTAS
Port of RIO GRANDE
7
VOLUME HANDLED AT BRAZILIAN PORTS
(X 3 IN 20 YEARS)
Million tons
8
BRAZILIAN PORTS SYSTEM - CONTAINER
Geographical
distribution
of Container
moves
Brazil
-
GDP: R$ 4,1 trillion1
Navigable coastline of 8.5
thousand km2
Investments envisaged in PAC 2
(2011-2014): R$ 958,9 billion4
North
6.5%
Northeast
12%
Port in Brazil
-
Responsible for more than 80% of
current trade2
5,0 million containers handled3 (organized public
ports and private use terminals).
84% of containers handled by public ports3
Southeast
50.5%
South
30.9%
1
2
3
4
IBGE
Casa Civil (Office of the Chief of Staff)
ANTAQ - National Water Transport Agency
MDIC - Ministry of Developmente, Industry and Foreign Trade
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EXPECTED INVESTMENT IN LOGISTICS
USD 150
Billions in 30 years
Source: EPL - Empresa de Planejamento Logístico
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ROADS
• Expansion of the main
roads (and logistics
corridors) in Brazil.
• Privatization processes of
main roads.
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ROADS – CONCESSION OF 9
AREAS (7.500 KM)
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RAIL
• New Legal Framework.
• End of Monopoly on Rail
Transportation.
• Expansion, Integration and
Modernization of rails.
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RAIL
14
WATERWAYS
Waterways:
•
•
•
•
•
•
•
•
•
Madeira
Tapajós – Teles Pires
Tocantins – Araguaia
Parnaíba
São Francisco
Tietê – Paraná
Paraguai – Paraná
Sul (Mercosul)
Amazonas - Solimões
15
PRIORITY– CONSTRUCTION OF
27 LOCKS
River
Locks
Status
Source: Ministry of Transports
16
EXPECTED INVESTMENT TO
CONSTRUCT 27 LOCKS
R$ 11,6 billions
1
AVG: USD 250 millions
Per lock
Source: Ministry of Transports
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PORTS
CHALLENGES
•
Expand Port System Capacity.
•
Clearly define the institutional
framework.
•
Improve the management efficiency
(performance) of Brazilian Ports.
•
Improve Port acesses
(road/rail/waterways).
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BRAZILIAN CASE STUDY
BANANA CHAIN
19
BRAZILIAN CASE STUDY
BANANA CHAIN
20
CASE STUDY
BANANA CHAIN
The most consumption fruit in the world (+2,37% a.a. in the last 8
years).
Main Global Players:
• Dole Food Company, Del Monte Foods, Chiquita Brands
International
Consumption ´Per capta´ (kg/hab./year):
• Philipinnes 42, Brazil 30.
Productivity (ton./hectare):
• Costa Rica: 53,95 (#1), Brazil: 13,55 (#9)
Freight rates (+ local taxes), for a 40´´ reefer cntr (13°C- 14°C):
• Ecuador to R´dam: USD 4.500 per Cntr.
• Brazil to R´dam: USD 3.400 per Cntr.
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CASE STUDY
BANANA CHAIN
Despite been one of world largest producer, Brazilian
production is mainly for Internal Market.
For internal market, plantations are in SC, PR, MG and
SP states. For exports, mainly Mercosul and Europe,
production are in RN and SC states.
In 2013, Brazil exported +8% than previous year,
reaching ~100 millions tons (1% of Global Marketshare).
22
CASE STUDY
BANANA CHAIN
40% Farm: production, working force
60% Logistics: transport, storage, handling
23
BRAZIL – CURRENT CHALLENGES
ON LOGISTICS
• Physical:
-
Insufficient infrastructure capacity
Inadequate hinterland connections
Limited port draft
City-locked ports generating congestion
• Management:
-
High logistics cost
Bureaucratic system
Environmental issues
High waiting time at Ports
• Reduce Logistics Costs.
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CONCLUSION
• Expand capacity of the port system
• Promote Hub and Spoke concept, linking Ports to Logistic
Platforms
• Balance Modal Split (road, rail, waterways, cabotage,
pipeline)
• Improve the management efficiency (performance) of
Ports
25
26
CLOSING REMARKS
“Brazil is the 21st-century
power to watch.”
Finacial Times, 19 Oct. 2009
“Brasil is South America’s mosti
influential country, an economic
giant and onde of the world’s
biggest democracies.”
BBC News 5 oct. 2010
Brazil has always been considered “the
country of the future”but that future
never became reality...now the time is
here, a world economix power with a
booming internal market as well as a
major player in the world trade market.
This is the right time to be in Brazil!
“Brazil is likely to become
the worl’s fifith-largest
economy, overtaking
Britain and France.”
The economist, 14 Nov. 2009
27
CLOSING REMARKS
“Has Brazil blown it?”
The economist, Sept. 2013
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EUROPE – HUB N´ SPOKE
DEEP SEA TERMINAL <-> LOGISTIC
PLATFORMS
ECT/Rotterdam para MOERDIJK CONTAINER
TERMINALS
www.europeangatewayservices.com
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THANKS FOR YOUR ATTENTION
André de Fazio, MSc
[email protected]
+ 55 11 3787.2667
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