A.P Moller-Maersk to invest over US$300mn in Brazil container terminal

APM Terminals, a subsidiary of Danish shipping and logistics company A.P. Moller-Maersk, is planning to invest 1.6bn reais (US$320mn) to build a new container terminal in Suape port in northeast Brazil’s Pernambuco state.  

"We are seeing the private sector investing more in the port sector and not only in terminals, but also in railway projects that connect production areas to ports," Fernando Fialho, a partner at port asset consultancy Modal Consult and former head of waterways authority Antaq, told BNamericas. "What is behind this trend is the need for logistics to keep up with the increase in exports from Brazil, mainly products linked to agriculture, paper and pulp and mining." 

APM Terminals plans to start construction of the terminal in 2024 and to begin operations in 2026.

"This investment guarantees more competitiveness for the Port of Suape. The expansion will allow Pernambuco to reposition itself from a logistical point of view both for Brazil and for the world. The new terminal will allow the state to increase all containers fivefold, so that it can receive more cargo, increasing the generation of new business," Pernambuco governor Raquel Lyra said in a statement.

The terminal will be built in an area of around 50ha and will have initial capacity of 400,000 TEUs per year. When fully operational, it is expected to have capacity of 1.3mn TEUs a year.

"This will be the first 100% electrified terminal in Latin America. All equipment will be electric, with cutting-edge technology and processes, such as a complete environmental management system, waste management, wastewater treatment and groundwater flow modeling for pollution control. It will also have its own 5G network, which will make it possible to transmit information in real time to customers, 24 hours a day, seven days a week," said Aristides Russi Junior, CEO of APM Terminals Suape.

In recent years, the private sector has taken a leading role in investments in Bazil’s port terminals.

Earlier this month, French logistics group CMA-CGM announced a plan to invest 320mn reais in Ceará state. The company signed a transitional lease agreement with Companhia Docas do Ceará and has already invested around 80mn reais in the terminal at Fortaleza port since April, when it took over operations.

As a way of attracting private investment, the Brazilian government has offered a series of leasing contracts for port terminals in recent years.

According to the government, projected investment in the 63 current leasing contracts is likely to reach 14.4bn reais in 2023-26. Authorities expect to offer 21 new leasing contracts with investments estimated at 5.3bn reais.