Discover the Future of Brazilian Ports

Welcome to the future of maritime logistics in Brazil. We are excited to announce the release of a comprehensive white paper titled Contributions to Planning the Consolidation of Hub Ports in Brazil.

This pivotal study, developed by A&M Infra, Navarro Prado Advogados, and APM Terminals, explores the transformative potential of hub ports in Brazil and their impact on the national and regional economy.

The analysis highlights how intense competition in the container shipping industry drives shipowners to differentiate themselves – primarily through economies of scale, by using larger ships. To maintain high occupancy and efficiency, these mega-ships limit their stops to key hub ports, which then distribute cargo to smaller ports via smaller ships in a hub-and-spoke system. This global trend optimizes logistics, but Brazil lags behind due to structural issues in its ports.

Implementing a hub-and-spoke model can lead to substantial economic and operational gains. By optimizing the use of large vessels, this model reduces layover times and significantly enhances service reliability.

The study estimates that efficient hub operations could not only cut down transit times but also make Brazil's logistics chain more resilient and dependable. Enhanced reliability ensures that shipping schedules are more predictable, reducing the risk of delays and improving overall service quality, which is crucial for maintaining competitive advantage in global trade.

The adoption of larger, more modern ships is not only cost-effective but also environmentally beneficial. These ships can reduce CO2 emissions and promote the use of low-carbon fuels. Additionally, the increased demand for docking and maintenance could boost Brazil's naval and fuel industries, fostering economic growth and sustainability.

Estimated cost savings

Successful deployment of hub ports in Brazil could result in lower shipping costs and increased schedule reliability of liner services.

A simplified simulation suggests that cost per TEU transported between the East Coast of South America and Asia could be up to 13% lower with a hub-and-spoke service using 366-meter vessels.

Conclusion

The consolidation of hub ports in Brazil represents a significant opportunity to enhance the country's maritime logistics and economic landscape. This white paper provides a detailed roadmap for policymakers, industry stakeholders, and investors to navigate the complexities of this transformation. By embracing these strategic recommendations, Brazil can position itself as a leading hub in the global maritime industry.

Download the full white paper to explore the detailed analysis, insights, and recommendations that will shape the future of Brazilian ports. Join us in this journey towards a more efficient, sustainable, and competitive maritime logistics system.

About the authors

Alvarez & Marsal

Companies, investors, and government entities worldwide turn to Alvarez & Marsal (A&M) for leadership, action, and results. Founded in 1983, A&M is recognised for providing consultancy, business performance improvement, and recovery management services. Established seven years ago, its infrastructure unit, A&M Infra, is a reference in Brazil and has already expanded its expertise to 10 other countries, assisting clients in capital-intensive and long-maturity projects through exclusive methodologies and specialised leaders in all infrastructure sectors.

When conventional approaches are not enough to create transformation and drive change, clients seek our deep experience and ability to provide practical solutions to their problems.

With more than 10,000 employees and service providers working on six continents, we deliver tangible results for companies, boards, private equity firms, law firms, and government agencies facing complex challenges. Our senior leaders and their teams leverage A&M’s restructuring heritage to help companies act decisively, leverage growth, and accelerate results. To learn more, visit: alvarezandmarsal.com

Navarro Prado Advogados

Navarro Prado, Nefussi Mandel e Santos Silva Advogados is a law firm specialising in infrastructure projects, with a multidisciplinary approach, updated and involved in relevant sector discussions in Brazil. It develops comprehensive solutions for projects and supports conflict resolution, connecting multiple public and private agents to transform and improve people’s quality of life through professionals with diverse experiences and complementary profiles. To learn more, visit: www.navarroprado.com.br

Contact

Danilo de Morais Veras
Head of Public Affairs, Latin America

+55 11 99179-2887 dve108@apmterminals.com