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The Brazilian water transportation sectorRegulation overview
SEP Mission – Shanghai
Fernando Antonio Brito FialhoDirector-General of ANTAQ
24/10/11
Area total 8.514.876 Km²
Estados 27
Litoral 8.511 Km
População 192 milhões
PIB 2010 US$ 2.194Fonte: MDIC MilhõesAnuário Estatístico-2010
Cobertura vegetal = 28,3%
Brazil: General information
Total area 8,514,876 Km²
Federated states 27
Coast 8,511 Km
Population 192 million
2010 GDP US$ 2,194Source: MDIC (in Millions)Statistical Yearbook-2010
Forest cover= 28,3%
22
Latin America’s largest economyWorld’s 8th economy
*Source: International Monetary Fund, World Economic Outlook Database, April 2010
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• Created by Act No. 10,233 of June 5th, 2001.
• Act 10,233/01: • Re-structures water and land transportation• creates CONIT, ANTAQ, ANTT and DNIT
• Connected to the Ministry of Transports – MT – and the Ports Secretariat – SEP.
• Regulation, inspection and harmonization of port and water transportation activities
ANTAQ: institutional aspects33
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PortAuthority
(concession)
BrazilianWater
TransportInfrastructure
PrivateTerminals
(authorization)
ShippingCompanies
(authorization)
RegulationInspection
RegulationInspectionAuthorization
AdministrativeDelegation
Leases(sub-concession)
Federal Government
State Structure44
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BRAZILLease
(sub-concession)
Authorization
Exclusive private ports
Mixed private ports
Small Public Port Installation
Tourist private ports
Cargo Transshipment Station
Organized Port – delegated to a Port Authority by the Union
Port facilities – Act 8,630/9366
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• Direct operation or Concession- Organized Port:
Concessions:• Dock Companies• States and municipalities, directly or via delegation agreement• Private initiative via public tender
• Small Public Port Installation (IP4): • States and municipalities by authorization
or delegation agreement• Private initiative via public tender
Public Ports77
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• To Private Companies Legal Basis:
• Act 8,630/93 and Act 8,666/93• Decree 4,391/02 and Decree 6,413/08 (out of National
Development Plan: CDRJ, CDC, CODESP, CDP, CODOMAR, CODERN and CODESA)
• ANTAQ Resolution 55 (under review) and Brazilian Court of Audit Normative Instruction 27/98
• Decree 6,620/08
Peculiarities:
Assignment of use of public asset Appraisal of the undertaking Period of up to 50 years Reversibility of assets to the Union Labor provided by OGMO (port labor management body)
Leasing (sub-concession) of Areas within the Organized Port
88
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Legal Basis:
Act 8,630/93; Resolution 1,660/10; and Decree 6,620/08
Peculiarities:
- Types of Facilities
- Period of up to 50 years (Resolution 1,660/10) - Possibility to operate in consortium - Authorization for shipyard and offshore support bases
Exclusive Use – to handle own cargo
Mixed Use – to handle third party and own cargo
By Authorization to the Private Initiative
99
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Tender for the private initiative
Granted use of organized ports to public or private companies through public tender
Concession period of 25 years, renewable for an equal period of time
ANTAQ in charge of tender, following the guidelines in General Concessions Plan (PGO)
Study of modeling of intended use in course
Legal Basis:
• Decree 6,620/08• Acts 8,630/93 and 8,987/95• Administrative Decree SEP 108/10
Peculiarities:
1010
Concession of organized ports to the private sector
10
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Direct Concession
Delegation Agreement (Ministry of Transports – Government of
Maranhão/EMAP)
Concession to the State of Santa Catarina (state)
Concession of Organized Port through tender ?
Authorization by Contract of Adherence
Private Concession
Types of port operation – Act 8,630/931111
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Planning Appreciation
• PNLT – National Transport Logistics Plan• PGO – General Port Concession Plan• Update of Public Ports Development and Zoning Plans• Water Transport General Concession Plan – Ports and Waterways• PNLP – National Port Logistics Plan• PNIH – National Water Transport Integration Plan• Updated Reliable Statistics
Investments to Improve Port Management
• Port Without Paper• Vessel Traffic Management System
Appreciation of Multi-Modal Integration
• Incentive to Cabotage• Investment in Waterways
Change of Behavior Regarding the Environment
• Port Licensing• Shift in Waterways
Improvement of Regulatory Framework
• Modernization of Resolutions
Chief advancements in water transport sector1212
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AMAZONASPARÁ
AMAPÁRORAIMA
RODÔNIA
MATO GROSSO
TOCANTINS
GOIÁS
MATO GROSSODO SUL
MARANHÃO
PIAUÍ
CEARÁRIO GRANDEDO NORTE
PARAÍBA
PERNAMBUCO
ALAGOAS
BAHIA
MINAS GERAIS
SÃO PAULO
ESPÍ
RITO
SA
NTO
PARANÁ
SANTACATARINA
RIO GRANDEDO SUL
SERGIPE
RIO DE
JANEIRO
ACRE
MANAUSSANTARÉM
BELÉMVILA DO CONDE
ITAQUI
FORTALEZA
AREIA BRANCA
NATAL
CABEDELO
SUAPE
MACEIÓ
SALVADOR
ARATU
ILHÉUSBARRA DO RIACHO
VITÓRIA
RIO DE JANEIROITAGUAÍ (Sepetiba)
SÃO SEBASTIÃOSANTOS
PARANAGUÁSÃO FRANCISCO DO SUL
ITAJAÍIMBITUBA
PELOTASRIO GRANDE
MACAPÁ
RECIFE
NITERÓIFORNO
ANTONINA
ANGRA DOS REIS
PORTO ALEGRELAGUNA
PUBLIC SEA PORTS
34
1313
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AMAZONASPARÁ
AMAPÁ
RORAIMA
RODÔNIA
MATO GROSSO
TOCANTINS
GOIÁS
MATO GROSSODO SUL
MARANHÃO
PIAUÍ
CEARÁRIO GRANDEDO NORTE
PARAÍBA
PERNAMBUCO
ALAGOAS
BAHIA
MINAS GERAIS
SÃO PAULO
ESPÍ
RITO
SAN
TO
PARANÁ
SANTACATARINA
RIO GRANDEDO SUL
SERGIPE
RIO DE JANEIRO
ACRE
MANAUSSANTARÉM
BELÉM
VILA DO CONDE
ITAQUI
FORTALEZA
AREIA BRANCA
NATAL
CABEDELO
SUAPE
MACEIÓ
SALVADOR
ARATU
ILHÉUS
BARRA DO RIACHO
VITÓRIA
RIO DE JANEIROITAGUAÍ (Sepetiba)
SÃO SEBASTIÃOSANTOS
PARANAGUÁSÃO FRANCISCO DO SUL
ITAJAÍ
IMBITUBA
PELOTASRIO GRANDE
MACAPÁ
RECIFE
NITERÓIFORNO
ANTONINA
ANGRA DOS REIS
PORTO ALEGRELAGUNA
14 TUP
13 TUP
Rio de Janeiro = 22 TUP
Rio Grande do Sul= 16 TUP
Santa Catarina= 11 TUP
PRIVATE PORT TERMINALS (TUP)
129
ETC
Espírito Santo = 9 TUP
Bahia = 8 TUP
1414
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PUBLIC BY LEASE (TENDER)
PRIVATE BYAUTHORIZATION
ORGANIZED PORT BY CONCESSION (TENDER)
• Acts 8,630/93 and 8,666/93• Decrees 6,620/08, ,.391/02
and 6,413/08• ANTAQ Resolution 55/02 (under review)• Normative Instruction TCU
27/08
• Act 8,630/93• Decree 6,620/08• ANTAQ Resolution 1,660/10
• Acts 8,630/93 and 8,987/95
• Decree 6,620/08• Administrative Decree SEP
108/10
• Assignment of use of public asset
• Appraisal of the undertaking• Period of up to 50 years• Reversibility of assets to the
Union• Use of OGMO (port labor
management body)
• Period of up to 50 years• Possibility to operate in
consortium• Authorization for shipyards
and offshore support bases• Exclusive use – own cargo
only• Mixed use – third party and
own cargo
• Tender for private initiative• Granted use of organized
ports to public or private companies through public tender
• ANTAQ in charge of tender, following guidelines in General Concessions Plan (PGO)
Water transport legislation – Regulations1515
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IMAGINARY LINE WITH SMOOTHNAVIGATION AREAS
DRAFT NO REEFS
AWAY FROM PORT AREAS
NO OVERLAPPING CONSERVATION UNITS
FACTORS CONSIDERED
The General Concessions Plan – PGO 16
24/10/11 Source: ANTAQ – Statistical Yearbook 2010 and MDIC, Alice System (http://aliceweb.desenvolvimento.gov.br/)
Brazil: exports and imports (by sea, in tons and US$ FOB)
1717
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2
4
6
8
10
12
0
2
4
6
8
10
12
Trade Chain and Port Handling - Brazil, 2001- 2010
US$ FOB (billions)
Millions of ton s
Trade chain vs. handling in Brazilian ports
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833,882,797 t
CABOTAGE188,011,104 t
22.55%LONG
DISTANCE616,397,721 t
73.92%
INLAND WATERWAYS29,473,972 t
3.53%
EXPORTS489,594,125 t
79.43%IMPORTS
126,803,596 t20.57%
Brazilian ports: handling in 20101919
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1
THE 15 GROUPS OF GOODS MOST HANDLEDIN 2010 (millions of t)
Brazilian ports:goods most handled
91% OF TOTAL CARGO HANDLING
IN 2010
2020
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NORTH NORTHEAST
SOUTHEAST SOUTH
Brazilian regions: participation in handling goods
2121
Solid BulksSolid Bulks
Solid BulksSolid Bulks
Liquid Bulks
Liquid Bulks Liquid Bulks
Liquid BulksGeneral Cargo
General Cargo General Cargo
General CargoContainers
Containers Containers
Containers
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CONTAINER(TEU)
1st trimester 2011 compared to1st trimester 2010
CONTAINER(TEU)
2nd trimester 2011 compared to2nd trimester 2010
1st semester 2011 compared to1st semester 2010
Fuel Only All Products Fuel not consideredPeriod
Port statistics:1st sem/10 vs. 1st sem/11
2323
CABOTAGE
Accum. 2011 / Accum. 2010
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• Oil prospection and extraction: offshore support
• Shipyards: inductor of Transpetro demands
• Establishment of clusters of chemical and oil industries
Opportunities:Oil prospection and extraction
2424
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Rio de Janeiro
Pernambuco
Pará
São PauloSanta Catarina
Rio Grande do Sul
Ceará
Bahia
Amazonas
North
Alagoas
In Operation Improvement New Plant
Area (m²)
Northeast
SoutheastSouth
Source: SINAVAL – National Shipbuilding and Repair Industry and Offshore Union
New oil tankers, support vessels, platforms and drilling ships stimulated the construction of 18 shipyards
Pre-Salt: shipyards2525
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R$ 15 BILLION
Opportunities- Private Terminals3030
R$ 7 BILLION
AUTHORIZED – IMPLEMENTATION UNDER WAY
CONCESSION REQUIREMENTS UNDER EXAMINATION
COMPANY
COMPANY
MUNICIPALITY
MUNICIPALITY
AUTHORIZATION
AUTHORIZATION
MODALITY
MODALITY
STATE
STATE
MIXED
MIXED
MIXED
MIXED
MIXED
MIXED
MIXED
MIXED
MIXED
EXCLUSIVE
EXCLUSIVE
EXCLUSIVE
EXCLUSIVE
EXCLUSIVE
EXCLUSIVE
EXCLUSIVE
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Leasing opportunities - North3131
R$ 1,5 BILLION
Container Handling and Storage
PORT STATE OBJECTIVE AREA (m²) TIME PERIOD
Implementation of 2nd Plant-Based Solid Bulks Terminal
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• Need to equip ports for offshore support
• Investments in specialized terminals
• New businesses
• Stimulation of maritime support companies
Pre-Salt: Maritime support navigation 3535
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TODAY, October 2011: 118 authorized companies – Source: ANTAQ website
• Authorization granted by ANTAQ to Brazilian navigation company
• Strong trend of grants increase due to the perspectives of pre-salt extraction and offshore operations
Pre-Salt: Maritime support navigation36
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• PROMEF Construction of 49 new tankers
• PROMEF Included in PAC – Acceleration Growth Program
• 2010 – 3 new ships (1 in Pernambuco and 2 in Rio de Janeiro)
• 2011 – delivery of another 5 (five) ships and launching of another 6 for final touches
• PROMEF – can create up to 40 thousand direct and 160 thousand indirect jobs
• Stimulus to other areas: ship parts and equipment, ironworks and metallurgy
• 23 ships = capacity of up to 2.7 million GT
Sea transportationTranspetro Demands
3737
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0 2 4 6 8 10 12
1
0 2 4 6 8 10 12
1
0 2 4 6 8 10 12
1
0 2 4 6 8 10 12
1
Drilling rigs in depths over 2,000 m Support and special vessels
SS and FPSO Production platforms Others (Jacket and TLWP)
+48 +250
+43 +6
Maritime support navigation: Pre-salt: Petrobras Demands
3838
up to
up to
up to
up to
up to
up to
up to
up to
up to
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• The volume in Tupi, Carioca and the other recently discovered fields in the pre-salt area may increase the country’s oil and gas reserves by more than 50%. Today they amount to 14 billion barrels.• Petrobras target: to commence production at Tupi in 2010, with a pilot project of 100 thousand barrels a day (5% of national production), arriving at 500 thousand barrels per day between 2015 and 2020.
Discovery of new oil fields
Source: Petrobras
*Fonte: ABEAM
• Opportunities to provide for Petrobras needs;
• Renovation of national fleet and maintenance of platforms and vessels
• Port facilities such as building or repair shipyards and provision of logistics supplies
Maritime support navigation – biggest evolution
3939
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• Provision of support services• Reserved to Brazilian companies• Brazilian flag vessels• Main services:
• port towage, passenger and cargo transportation, transportation of pilots,
• towing maneuvers• collection of garbage and residues from holds• provision of fuel, drinking water, food
Port support navigation4040
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Waterway navigation (Inland navigation)Change in mode: Reduction of CO2 and freight cost 41
41
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• Integration with the electricity sector in decisions involving projects with locks
• General Waterway Concession Plan• Social aspects in passenger
transportation in regions with little infrastructure
• Multimodality
• Production flow
• Carbon Credits
Waterways– Emphasis in using inland navigation
4242
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*Fonte: Ministério dos Transportes
Waterway Corridors – planning routes43
Grain Production
Area
Mercosur Corridor
Madeira Corridor
Tapajós Teles-Pires Corridor Tocantins Corridor
Parnaíba Corridor
São Francisco CorridorParaguai Corridor
Tietê / Paraná Corridor
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Soy corridors – agribusiness4444
Soy Complex Export Corridors
Key:Cerrado Macro RegionSouth Macro RegionNon-operating WaterwayWaterwayProjected WaterwayExporting PortPortPresent FlowsAdditional Flows
Waterways:Place Production Access to Ports
WaterwayRailwayHighway
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TocantinsPotential Extension: 1,580 km
AraguaiaPotential Extension : 2,060 km
Multimodal PotentialTocantins-Araguaia Waterway Navigation potential
4545
Navigable StretchLittle NavigabilityDamsBarrages
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• The Tietê river is an example of multiple uses of water, as it is a source of energy and a logistic waterway mode of transportation of cargoes
• It is part of a multimodal utilization to suppress bottlenecks in the accesses to the Port of Santos, São Paulo
•Salto
Multimodality – Port of Santos –Tietê River 4646
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The Tietê-Paraná waterway will have three sets of multimodal junctions:1 - Pederneiras-Jaú connected to railway (São Paulo and Santos)2 - Conchas-Anhembi3 - Santa Maria da Serra-Artemis (Piracicaba) connected to railway (São Paulo and Santos)
Railway interconnection
Railway connection to
Santos
Multimodality – Tietê River – Intermodal cargo terminals
4747
Source: São Paulo Road Map
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2
4
6
8
10
12
1 1 1
Transport matrixModes of transportation throughout the world – Comparative chart
4848
Highways
Railways
Waterways
United States Canada Russia Germany Brazil
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2
4
6
8
10
12
1 1
Transport matrix according to PNLTCurrent and projected for 2025 – Planning demands
4949
Cost Competitiveness
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Example from agribusinessReduced CO2 emission by changing mode
5050
Current and Potential Handling of Grains in Brazil
Brazilian Grains Production
Production Transported by Waterway
Handling of Grains in Waterways
Current Potential
million t
million tmillion t
million t(2018/19 harvest)
Source
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Example from agribusinessReduced CO2 emission by changing mode
5151
Reduced CO2 emissions to transport 2018/19 grains harvest
Harvest Handling by Waterway
No Investments
Difference – Cargo attracted by waterway
With Investments
million t
million t
million t
Source
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Example from agribusinessReduced CO2 emission by changing mode
5252
Reduced CO2 emissions to transport 2018/19 grains harvest
CO2 Emissions Highway Mode
Waterway Mode
Cargo Absorbed
by Waterway
Highway Mode Waterway Mode ReducedEmission
million t
Highway(km)
CO2 Emission(kg)
Waterway (km)
Highway(km)
CO2 Emission(kg)
Source
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• Multimode integration of highways, railways and waterways
• Establishment of transshipment terminals at riparian cities along waterways
• Possible better flow of local production
• Development of industries and services along the multimodal matrix
• Attraction of investments
Multimodal potential Potential for waterways usage
5353
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“Many have ideas and are creative. Some turn their ideas into dreams, and are persistent. Rarely do they turn their dreams into reality, and these are the ones who change the world.” Steve Jobs
5454
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Fernando Antonio Brito FialhoDirector-General
0800-6445001www.antaq.gov.br