How Brazil’s Ultracargo is expanding coastal and inland fuel handling

Brazilian logistics firm Ultracargo and fuel distributor Dislub have entered into a partnership to carry out marine fuel oil, or bunker, operations at the port of Suape in Pernambuco state. 

Four tanks with total storage capacity of 40,000m3 were made available at an Ultracargo terminal. The product is then pumped onto a barge and from there to ships that need refueling. 

Ultracargo is also investing in projects to expand its fuel storage and handling capacity in the interior of Brazil, mainly to meet demand from the agribusiness industry. 

In this interview, BNamericas talks about the initiatives with Fernando Dihel, who is the company's executive director of business development.

BNamericas: Is bunker demand expected to increase in Brazil?

Dihel: Petrobras has the main share of supply in this market, and there are more and more logistical bottlenecks when we look at maritime flows on the Brazilian coast.

Suape has positioned itself as a major hub for bunker handling because Pernambuco is at a point where a flow of ships from the Gulf of Mexico to Asia passes through. And there was also bunker shortage for ships operating in the region itself, but which had to refuel in other ports. 

We now have ample tanking capacity in Suape, with more than 150,000m3, part of which is for bunker. 

BNamericas: Do you intend to make any new investments? 

Dihel: In addition to Suape, we’re evaluating bunker opportunities in other ports where we’re present, such as Vila do Conde, in Pará, as well as Santos [São Paulo] and Itaqui [Maranhão]. 

BNamericas: Does Ultracargo operate with other fuels besides bunker?

Dihel: At first, we were very focused on liquid chemical bulk. We supplied factories belonging to major players such as Braskem and Unigel, among others. 

Over the last few decades, the oil derivatives market has changed a lot. Petrobras now has a refining deficit and depends on imports. So, we've migrated to meet the needs of the fuel entering the country. As a lot of this product comes in through Santos and Itaqui, these are the two places where we have facilities. 

We’re setting up a transshipment terminal in Palmeirante, Tocantins state, to be served from Itaqui by a railroad. It should start operating between the end of this year and the beginning of next. Trucks will be loaded from the new terminal to supply gas stations and distribution bases in the region. 

Another project involves the Santos-center-west corridor, serving the state of Mato Grosso. We have authorization from [regulator] ANTT to put in a high-capacity rail connection point at Santos, where we already operate. When it’s operational, it will transport gasoline and diesel to the interior, reaching Mato Grosso, which is the country's big agricultural production hub, replacing trucks through a more efficient, safer way, involving more ESG. 

And we acquired 50% of a terminal in Paulínia [São Paulo]. It's a terminal originally designed to handle ethanol, but we're making adjustments for other oil products. We're creating a rail connection point there to transport diesel and gasoline to Mato Grosso.

From our Rondonópolis terminal, in Mato Grosso, ethanol shipments leave for the port of Santos by rail. We don't just operate in ports. We’re a logistics operator, also operating with inland terminals. 

BNamericas: What about the project in Vila do Conde?

Dihel: This is a third waterway corridor under study. In Vila do Conde, we have a more modern, automated terminal with the capacity to receive large ships and load barges, with a natural draft of 14m. Santarém, for example, is restricted to 12m, Itacoatiara to 11m. The aim is to receive larger loads, carrying barges [with fuel] to various regions.