Container terminals to invest US$150mn 2004-2007

Container terminals in Brazil will invest US$150mn between 2004 and 2007, according to information from the country's public-use container terminals association Abratec cited by Jornal do Commercio. The investment will increase handling capacity at the country's ports to some 4 million containers, from the 2.3 million containers moved in 2002, and the 2.61 million expected to be moved this year, according to the association. The terminals' installed capacity is 44% more than what is used, said association president Sergio Salomao, adding that 97% of Brazil's exports are sent by ship, and that each export container represents an average of US$26,000. The report said that between 1995 - when the country's ports were opened to the private sector - and this year, terminal owners will have spent US$400mn, which has increased cargo movement 261% The report also highlighted the sector's modernization, such as new equipment and better-trained personnel, that has lowered container-handling costs for exporters, to US$100-200 - depending on the port - from close to US$600 in 1995. In 1994, terminals moved 8-10 containers/hour, today some ports, such as Santos, move close to 50 containers/hour. According to Salomao, the sector's greatest challenge is the lack of access infrastructure to the ports, in particular rail access.