Competition heats up between Brazil's ports of Salvador and Suape for fruit exports
THE ports of Salvador and Suape are fiercely competing with each other to gain a larger share of Brazil's fruit export market, with Salvador's move to cut terminal handling charges (THC) giving it the upper hand.
Many containerised fruit imports originate in the state of Pernambuco, making them a natural fit for Suape, which is also located in the state. However, the lower THCs on offer at Salvador have made it more attractive for Pernambuco shippers, which typically avoided Salvador because of the extra tariffs they would have had to pay by crossing the state border into Bahia from Pernambuco.
Container traffic at Salvador rose 6.9 per cent year on year during the first eight months of the year to total 197,000 TEU, driven mainly by fruit shipments. That 13,000-TEU gain mirrors the 15,000-TEU loss at Suape over the same period to 257,000 TEU, reported IHS Media.
Much of Salvador's gains came from shippers of grapes and mangoes, who were also drawn to the port because of its 34 deep-sea calls and 16 cabotage calls per month. The majority of Salvador's fruit exports end up in the United States and Europe. Suape has 10 deep-sea calls.
Despite a struggling economy, Salvador has been having a good year, according to CEO Demir Lourenco of Tecon Salvador, who also scotched rumours that the facility was among four terminals about to be granted a 25-year concession extension by the Brazilian Ministry of Transport.
We are not within a week of the extension being granted, as we are still negotiating the details," Mr Lourenco said. You have to remember that Brazil is a very bureaucratic country and these things take time."
The concession would pave the way for a US$110.4 million expansion that will extend Salvador's quay 150 metres to 800 metres, enabling the port to handle two 10,000-TEU ships simultaneously. The port will also add to its fleet of six ship-to-shore gantry cranes and eight rubber-tyre gantry cranes.
The expansion plan would raise Salvador's annual capacity from 530,000 TEU to 950,000 TEU, Mr Lourenco said. The port handled 292,000 TEU in 2015, a two per cent increase year on year.
THE ports of Salvador and Suape are fiercely competing with each other to gain a larger share of Brazil's fruit export market, with Salvador's move to cut terminal handling charges (THC) giving it the upper hand.
Many containerised fruit imports originate in the state of Pernambuco, making them a natural fit for Suape, which is also located in the state. However, the lower THCs on offer at Salvador have made it more attractive for Pernambuco shippers, which typically avoided Salvador because of the extra tariffs they would have had to pay by crossing the state border into Bahia from Pernambuco.
Container traffic at Salvador rose 6.9 per cent year on year during the first eight months of the year to total 197,000 TEU, driven mainly by fruit shipments. That 13,000-TEU gain mirrors the 15,000-TEU loss at Suape over the same period to 257,000 TEU, reported IHS Media.
Much of Salvador's gains came from shippers of grapes and mangoes, who were also drawn to the port because of its 34 deep-sea calls and 16 cabotage calls per month. The majority of Salvador's fruit exports end up in the United States and Europe. Suape has 10 deep-sea calls.
Despite a struggling economy, Salvador has been having a good year, according to CEO Demir Lourenco of Tecon Salvador, who also scotched rumours that the facility was among four terminals about to be granted a 25-year concession extension by the Brazilian Ministry of Transport.
We are not within a week of the extension being granted, as we are still negotiating the details," Mr Lourenco said. You have to remember that Brazil is a very bureaucratic country and these things take time."
The concession would pave the way for a US$110.4 million expansion that will extend Salvador's quay 150 metres to 800 metres, enabling the port to handle two 10,000-TEU ships simultaneously. The port will also add to its fleet of six ship-to-shore gantry cranes and eight rubber-tyre gantry cranes.
The expansion plan would raise Salvador's annual capacity from 530,000 TEU to 950,000 TEU, Mr Lourenco said. The port handled 292,000 TEU in 2015, a two per cent increase year on year.
