
Brazil's ports handle more cargo despite COVID-19

Cargo passing through Brazil’s ports increased through April despite the spread of coronavirus and its severe impact on the economy, thanks to China’s strong appetite for Brazilian commodities.
Ports handled 341Mt in January-April, up 3.71% from the year-ago period, according to waterways regulator Antaq.
Exports to China rose 11.7%, driven by soybeans and oil, with growth of 41.5% and 44.5% respectively.
The effects of COVID-19 on Brazil’s ports were restricted mainly to January, the peak of the epidemic in China, with a 15.3% drop in exports in the month, according to Antaq.
Brazilian iron ore exports – representing nearly a third of all cargo passing through the country’s ports in the four months – fell 6.21% to 109Mt.
The drop was because mining giant Vale had to reduce production and exports following the collapse of a tailings dam at one of its iron ore mines in Brumadinho in January 2019.
Looking ahead, the country’s port sector is likely to continue expanding, the agency said.
“The expectation for 2020 is an increase in total port handling. Despite a negative cabotage result in the short term, both exports and imports are expected to grow, mainly driven by the agricultural sector, with a strong harvest and increased demand from China, and by bulk liquids, oil and oil derivatives,” Antaq said.
In recent weeks, the infrastructure ministry announced a series of auctions to offer concessions for several terminals and it is drawing up a plan to privatize the country’s busiest port, Santos in São Paulo state, in 2022.
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