Logistics in Northeast Brazil: Presentation of the Port of Maceio

Interview with Rosiana Beltrão, Administrator of the Port of Maceio

What are the great challenges that the Port of Maceio faces?

The main challenge for me when I arrived was to be able to make the port more profitable. We had to find another source of revenue to transform the port into one that brings in revenue not just for the port itself but also for Alagoas. I identified that it is one of the ports with the best location in the north east of Brazil. It is the port with the largest open surrounding area today in Brazil which means the Port of Maceio has a great growth possibility.

When I saw all this and all the free space, the first thing I had to do was to zone the port. There is a programme from the CDC that focuses on the investment and decides which zone of the port is the best for it to go into.

We have to report to the Port Authority Board during every phase of our business and thus we can really get a feel for how we want the Port of Maceio to function in the future.

I want to see the port provide for many generations, so my challenge is to focus our actions for its future and for the future generations.

The principal activity of the port is sugar exports. It is the main economy driver and the principal area of investment not just of the port but of Alagoas in general. We grow sugarcane in the countryside and we export the sugar via the port. However, the sugarcane industry is seasonal and the income of the port must be continuous. Outgoings are constant, therefore we have to look for alternatives. We have found such alternatives mainly from the offshore market, which I believe is growing a lot in this country. 3 or 4 years ago when President Lula talked about this dream everybody was unsure about it, but it is a reality and it will allow for a huge jump in Brazil’s economy over the next 5 or 10 years and it is happening already.

Today, Petrobras is finding ways to install platforms and Maceio is becoming a large investor in this offshore sector. Alagoas has invested $1.2 billion in the offshore market. Ferrostaal enlisted Petrobras for this investment and Petrobras chose the Port of Maceio for the abundant area we have to offer where they can find a deep draught for the ships they will need. Right now we have to concentrate on diversifying the activity of the Port of Maceio.

Another great strength of our port is liquid bulk. This means that in terms of combustibles, we are dealing with both exports and imports, whereas with sugar we just export. We import wheat and fertiliser. All sorts of exports and imports come through this port. Today, the great driver of the Brazilian economy and the economy of Alagoas is the port. Everything comes in and leaves via the Brazilian ports. Our President and the new regulatory board for exports are particularly focused on this area of the economy, because today Brazil is beginning to notice the importance of each port in each state.

Another challenge – and not just mine – is the need to integrate the transport networks, because once a product arrives at a port we need to have the infrastructure to be able to continue its delivery via roads, railways etc. To expand the ports is not only a federal responsibility but also our own. Alagoas is a state that is growing visibly with industry setting up here. We are a great state; we have water, electricity, space to grow. It is a state that people can witness growing; people are beginning to see that is it a great place to invest.

Therefore, I would say that my major challenge and objective is to diversify the activity of the Port of Maceio.

What would you like to say to foreign investors?

Firstly, I would tell them to visit and discover Alagoas. I think that after talking to us and with our Governor, foreign investors will be able to get a real feel of what we are doing here in Alagoas. This communication is really important for foreign investors.

Come to Alagoas, we have a great port that has a wonderful draught. We are participating in the Paperless Port System, which means all the administrative phases that used to take 5 or 6 days now just take 5 or 6 hours. We still have large scope for investment within the port. We have very competitive tariffs. The port tariff is not the most expensive part of the port process. Those who deal with imports and exports understand that the port tariff doesn’t greatly affect their profits. We have port tariffs that are cheap compared to other countries. The Port of Maceio has water, we are diversifying business and we develop pre sale for those foreigners who want to be assured that there are growth possibilities for them here in Brazil.

I invite other investors to come. Petrobras is currently the main investor and other companies are free and invited to compete for the offshore market here within the Port of Maceio.

Can you tell us about the areas of investment?

We have more than 150,000 m² that are unoccupied. To occupy these areas you have to go through the first paperwork phase, to insure both the investor and the Port. We have a regulatory agency where you have to send all the documentation which has a fast turnaround. You will be allowed temporary use of the area during this time. You do not have to take out a lease of 25 years, you can have a short term lease of between 3 and a half to 5 years in which you can occupy the area. If your investment terminates before that period is over, you can return the area earlier, you are not obliged to stay on. This flexibility and the short term contracts have encouraged many businesses to invest in the ports in Brazil.

What are the strengths of this particular port? Why should an investor choose the Port of Maceio in Alagoas?

Firstly, one of the best features of Alagoas is the variety of natural beauties and wonders it offers. Maceio is a picturesque capital with a strong business focus. We have the port which offers a huge area of business investment but we also have tourism. You may wish to invest in business with the port and then at a later date move into the tourism sector. Maceio is the 2nd most visited city of the north east after Salvador, in terms of passenger ships. The capital is an attractive place to set up your business. We have water, energy, the government can tell you about the fiscal laws etc. We have a good workforce with many institutions and training services such as the SENAI available to capacitate this workforce. Just imagine the amount of jobs that the port creates in Alagoas. 2,000 jobs directly and many more indirectly. We have to focus upon how the state and the population can benefit from this investment. The workforce is the most important tool a developing country has.

What are you projects for the future of the Port?

Firstly, we need to deepen our draught. It is currently 10,5 m but the ideal would be 12,5 m. We have secured the resources from the federal government in this regard. We have 7 docking berths and we need to strengthen the whole structure because today competition from other ports is a big issue. We must also look at the issue of security and invest in this area. We have a large project for more security cameras and we must also develop other security measures.

I see the port in the future working with people from all over the world via accountants, the internet etc. In the near future, I see everything being computerised so that you can do business wherever you are. It sounds like a dream but it is the reality. You have to dream but you also have to believe in yourself and take action. I see the Port of Maceio as a very modern port of the north east in the near future, and I hope to take a part in the process.