THE Panama Canal has inked a memorandum of understanding (MoU) with the port of Itaqui, situated in northeast Brazil, to promote the shipment of grains and other cargo between the north of Brazil to destinations located in the Pacific Ocean
THE Panama Canal has inked a memorandum of understanding (MoU) with the port of Itaqui, situated in northeast Brazil, to promote the shipment of grains and other cargo between the north of Brazil to destinations located in the Pacific Ocean. The port of Itaqui, located in Sao Luis, Maranhao, is the Brazilian port closest to the Panama Canal and has the necessary infrastructure and connectivity to move these exports to markets in Asia. With this agreement, the Panama Canal looks to promote the use of the Panamax locks for grain transits originating in northern Brazil and travelling to markets in Asia.
The agreement will allow the Panama Canal and port of Itaqui to conduct joint marketing activities and exchange market studies and information on trade flows to support modernisation and improvement programmes, reported American Shipper.
'This agreement is very important to enable the handling of grains to Asia through the Canal, providing even more competitiveness to Itaqui and already contemplating the growth of grain handling by the northern arch of Brazil,' said Maranhao Port Administration Company president Ted Lago.
The MoU's signing comes at a time when Brazilian grain exporters are enjoying considerable increases in shipment volumes. Dry bulk vessels transporting grains and other dry commodities accounted for 22.2 per cent of the Panama Canal's total oceangoing commercial transits from October 1, 2017 to September 30, 2018.
WORLD SHIPPING
