FEDERAL REPUBLIC OF BRAZILFEDERAL REPUBLIC OF BRAZIL

Brazilian Port Dredging ProgramBrazilian Port Dredging Program

Pedro Brito Minister of Ports

april, 2008

THE MAJOR THE MAJOR BRAZILIAN PORTS BRAZILIAN PORTS

SPECIAL SECRETARIAT OF PORTSFEDERAL REPUBLIC OF BRAZIL

FEDERAL REPUBLIC OF BRAZILFEDERAL REPUBLIC OF BRAZIL

34 MAIN PUBLIC PORTS 34 MAIN PUBLIC PORTS

AMAZONASAMAZONAS PARÁPARÁ

AMAPÁAMAPÁ

RORAIMARORAIMA

RODÔNIARODÔNIA

MATO GROSSOMATO GROSSO

TOCANTINSTOCANTINS

GOIÁSGOIÁS

MATO GROSSOMATO GROSSODO SULDO SUL

MARANHÃOMARANHÃO

PIAUÍPIAUÍ

CEARÁCEARÁRIO GRANDERIO GRANDEDO NORTEDO NORTE

PARAÍBAPARAÍBA

PERNAMBUCOPERNAMBUCO

ALAGOASALAGOAS

BAHIABAHIA

MINAS GERAISMINAS GERAIS

SÃO PAULOSÃO PAULO

ESPÍ

RITO

SAN

TO

ESPÍ

RITO

SAN

TO

PARANÁPARANÁ

SANTASANTACATARINACATARINA

RIO GRANDERIO GRANDEDO SULDO SUL

SERGIPESERGIPE

RIO DE JANEIRO

RIO DE JANEIRO

ACREACRE

Porto de MANAUSPorto de SANTARÉM

Porto de BELÉMPorto de VILA DO CONDE

Porto de ITAQUI

Porto de FORTALEZAPorto de AREIA BRANCA

Porto de NATALPorto de CABEDELO

Porto de SUAPE

Porto de MACEIÓ

Porto de SALVADOR

Porto de ARATU

Porto de ILHÉUSPorto de BARRA DO RIACHO

Porto de VITÓRIA

Porto do RIO DE JANEIROPorto de ITAGUAÍ

Porto de SÃO SEBASTIÃOPorto de SANTOS

Porto de PARANAGUÁPorto de SÃO FRANCISCO DO SUL

Porto de ITAJAÍPorto de IMBITUBA

Porto de PORTO ALEGRE

Porto de RIO GRANDE

Porto de MACAPÁ

Porto de RECIFE

Porto do NITERÓIPorto do FORNO

Porto de ANTONINA

Porto de ANGRA DOS REIS

Porto de PELOTAS

Porto de PECÉM

Reasons for the need of Dredging In BrazilReasons for the need of Dredging In Brazil

• Increase of Ports sedimentation;Increase of Ports sedimentation;

• Increase of Cargo Handling and Increase of Cargo Handling and Economy Scale;Economy Scale;

• Increase of the Ship Size;Increase of the Ship Size;

• Necessity of Reduction of Ship Transit Necessity of Reduction of Ship Transit Time in Ports. Time in Ports.

Navigation Safety Reasons for Navigation Safety Reasons for the need of Dredging In Brazilthe need of Dredging In Brazil

• Increase the Depth of the Access Channel, Turning Increase the Depth of the Access Channel, Turning Basin and Mooring Berths;Basin and Mooring Berths;

• Maximize Draft of Ships for Ingoing and Outgoing of Maximize Draft of Ships for Ingoing and Outgoing of Ports;Ports;

• Maximize Ships Lengths and Breath; Maximize Ships Lengths and Breath;

• Decrease Depth variation because of sedimentation;Decrease Depth variation because of sedimentation;

• Recommended maneuvers;Recommended maneuvers;

• Gather Hydrographic and Meteorological Information.Gather Hydrographic and Meteorological Information.

Brazil’s Main Dredging ProblemsBrazil’s Main Dredging Problems

• Brazilian Dredging Diminished Capacity;Brazilian Dredging Diminished Capacity;

• Equipment and Personnel Lack of Renewal Equipment and Personnel Lack of Renewal

and Technical Skill.and Technical Skill.

• Progressive sedimentation of the Access Channel, Progressive sedimentation of the Access Channel, Turning Basin and Mooring Berths;Turning Basin and Mooring Berths;

• Reduction of the authorized Draft by the Maritime Reduction of the authorized Draft by the Maritime Authority;Authority;

• Lack of operational and logistical capacity in the ports Lack of operational and logistical capacity in the ports to deal with the increasing demand of ships and cargo;to deal with the increasing demand of ships and cargo;

• DemourrageDemourrage High Costs for the Brazilian Economy; High Costs for the Brazilian Economy;

• Increase of the freight and insurance costs; Increase of the freight and insurance costs;

• Lost of competitiveness of Brazilian products in the Lost of competitiveness of Brazilian products in the international markets.international markets.

Main Consequences of Waterway Main Consequences of Waterway Access LimitationsAccess Limitations

• Creates the Brazilian Port Dredging Program;Creates the Brazilian Port Dredging Program;

• Introduces the concept of Dredging for Introduces the concept of Dredging for

Results;Results;

• Establishes the contract default;Establishes the contract default;

• Establishes the competence for the Brazilian Establishes the competence for the Brazilian

Secretariat of Ports.Secretariat of Ports.

LAW N° 11.610 / 07LAW N° 11.610 / 07

• International bid for engineering services in order to International bid for engineering services in order to attract also international dredging companiesattract also international dredging companies

• Contract Model: payment by results and defined depthsContract Model: payment by results and defined depths

• Self-financing through port operational revenues (Project Self-financing through port operational revenues (Project Financing)Financing)

• Long Term contracts: 5 years with renewal of 1 more year Long Term contracts: 5 years with renewal of 1 more year

• Performance appraisalPerformance appraisal

• By checking the depths thought regular bathymetriesBy checking the depths thought regular bathymetries

• By controlling of the Maritime AuthorityBy controlling of the Maritime Authority

Brazilian Port Dredging Program

Basic ConceptsBasic Concepts

Estimated Dredging for the Next Five YearsEstimated Dredging for the Next Five Years

567,1567,1

13,9

28,0

62,9

19,7

74,5

1,5

85,7

13,3

49,0

78,3

91,5

US$ 10US$ 1066

(april/08)

200.00011.000.00019,0SUAPE – PESUAPE – PE

500.000610.00012,5VITÓRIA - ESVITÓRIA - ES

0505

15.300.00015.300.00064.070.00064.070.000-TOTALTOTAL

700.0001.855.00011,5RECIFE – PERECIFE – PE0707

-2.050.00015,0ARATU – BAARATU – BA

1.800.0004.200.00014,0FORTALEZA - CEFORTALEZA - CE

0606

4.930.00017,5ITAGUAÍ – RJ (2ª. Fase)ITAGUAÍ – RJ (2ª. Fase)

200.0003.500.00013,5/15,5RIO DE JANEIRO - RJRIO DE JANEIRO - RJ0404

2.500.0003.060.00012,0ITAJAÍ - SCITAJAÍ - SC

1.000.0003.200.00014,0SÃO FRANCISCO DO SUL - SCSÃO FRANCISCO DO SUL - SC0303

4.000.0009.135.00015,0SANTOS - SPSANTOS - SP0202

3.200.00016.000.00016,2RIO GRANDE - RSRIO GRANDE - RS0101

Actual Actual Maint./YearMaint./Year

INITIALINITIALDREDGINGDREDGING

(m3)

DEPTHDEPTH(m)PORTPORT

GROUPGROUP

1.200.000

FIRST FASE

Estimated Dredging for the Next Five YearsEstimated Dredging for the Next Five Years

30,3

26,4

60,0

17,3

US$ 10US$ 1066

(april/08)

2.400.0009.000.00015,0PARANAGUÁ - PRPARANAGUÁ - PR

45.0003.500.00012,0/15,0SALVADOR - BASALVADOR - BA

-2.220.700CABEDELO - PBCABEDELO - PB0202

40.0002.079.350NATAL - RNNATAL - RN0101

Actual Actual Maint./YearMaint./Year

INITIALINITIALDREDGINGDREDGING

(m3)

DEPTHDEPTH(m)PORTPORT

GROUPGROUP

SECOND FASE

03 03

04 04

05 05 IMBITUBA - SCIMBITUBA - SC 12,0 850.000 2,5 500.000

11,0

14,0

T O T A LT O T A L

BlocksBlocks PortsPorts Invite for Invite for International TenderInternational Tender

0101 Rio Grande – RSRio Grande – RS 31/07/200831/07/20080202 Santos – SPSantos – SP 31/08/200831/08/2008

03São Franc. Do Sul – SC

30/11/2008Itajaí – SC

04Rio de Janeiro – RJ

31/10/2008Vitória – ES

05 Itaguaí – RJ 31/07/2008

06Fortaleza – CE

30/09/2008Suape – PEAratu – BA

07 Recife – PE 31/07/20082ª Fase New Five Ports 31/01/2009

Brazilian Port Dredging ProgramBrazilian Port Dredging ProgramProgProgram Implementationram Implementation