Suape – crown jewel of Brazil’s northeastern seaports

Competitive advantages of this seaport complex attract companies to form an important logistics hub for the ship-building industry and the petroleum and gas business chain

In the state of Pernambuco, located in Brazil’s Northeast Region, the fortuitous combination of a port with deep water, strategic geographic position relative to the main oceanic shipping routes and proximity to major centers of consumption established ideal conditions for the installation of an industrial complex that has been growing at a rapid pace and transforming itself into an driver of economic and technological development for the region. With construction works underway wherever you look, the Port of Suape’s back-up area, providing ancillary port services, is today an important target and destination for domestic and international investors in the widest and most diverse array of economic sectors.

Today, Suape is emblematic of the development of Pernambuco and ensures rates of economic growth for the state that by far exceed the national average. According to the ‘Agência Estadual de Planejamento e Pesquisa de Pernambuco’ (Condepe/Fidem – Pernambuco State Agency for Planning and Research), Pernambuco’s Gross State Product (GSP) grew 2.3% in 2012, reaching R$ 115.6 billion (US$ 52.54 billion). The result surpassed the growth registered by the Brazilian economy which reported only 0.9% growth during the same period. Condepe/Fidem estimates that the economy of Pernambuco will grow 4.5% in 2013.

The projects that have already been installed or are presently being established in the complex have generated great demand for skilled and specialized manpower in view of the expansion of infrastructure for handling of cargo in the port and investments in industrial plants.

According to Maurílio Lima, president of Condepe/Fidem, despite the international economic crisis, Pernambuco has managed to maintain the state’s good economic performance thanks to a series of public policies that have supported the positive rates of growth. “The economy of Pernambuco has, since 2007, been displaying average rates of growth and increasing rates of employment, an increase in the minimum wage and the ‘ascension’ of new social categories. This result is mainly attributable to policies for stimulation of economic development by state and federal governments”, he states.

Also contrary to what has been happening in the rest of the country where there is a strong trend of ‘de-industrialization’, in Pernambuco the industrial sector has continued its trajectory of growth, registering an increase of 3.7% in 2012. This performance was driven mainly by growth in the civil construction business chain followed by the processing industry; with 8.3% and 2%, respectively. “The pace of growth is expected to be maintained in 2013. Our processing industry and the automotive sector should stand out even more as a result of the establishment of the major projects in Suape, such as the Abreu e Lima Refinery” , said Lima.

Strategic location

Located in the southern zone of the Metropolitan Area of Recife, both the port and the industrial complex are at the stage of consolidation and expansion, with large projects envisioned or underway. The area covered includes five municipalities: Cabo de Santo Agostinho, Ipojuca, Jaboatão dos Guararapes, Moreno and Escada, for a total area of 1,774 km².

The port is outstanding for its proximity to the coasts of North America and Eastern Europe – just 8 days’ travel time away. With a ‘hub port’ profile, Suape links to over 160 ports on all of the world’s continents.

In the first half of this year (2013), the amount of cargo handled by the Port of Suape rose 3.3% compared to the first six months of 2012. The amount of cargo rose from 5.3 million tons to 5.5 million tons in the period. In this tally, Suape maintained its profile as primarily an importing seaport: 4.4 million tons of imports compared to 1.1 million tons of exports. In the semester, the port received a total of 665 ships; 2.6% more than in the first half of 2012.

The importation of steel plates for Estaleiro Promar, a shipyard which went into operation in June (see article in this issue), contributed to this performance since the amount of ‘loose’ cargo handled rose from 78,997 tons to 139,705 tons in the period. Also displaying positive results in these first six months was the volume of bulk liquids – alcohol (ethanol), diesel, gasoline, kerosene-type aviation fuel, soybean oil, acids, among others – handled by the port. The rise in this type of cargo was as high as 8.8%, primarily attributed to the increased volume of fuel oil handled by the port to supply thermoelectric power plants.

The number of containers handled, in turn, showed an increase of 4.2% in the first half of 2013 compared to the same period last year. The only decline reported was in the handling of bulk solids (grain in general, slag, clinker; among others) in which a slight drop of 2.2% was reported, declining from 358,594 tons to 350,841 tons in the last six months.

Works toward operational excellence

To increase competitiveness and achieve operational excellence, major investments are being made in the development of port infrastructure and in structuring works.

A total investment of R$ 920.3 million (US$ 418,32 Mio), financed by the  ‘Banco Nacional de Desenvolvimento Econômico e Social’ (BNDES – Brazilian Development Bank)), is foreseen within the country’s ‘Programa de Desenvolvimento da Infraestrutura de Áreas Portuárias’ (National Program for the Development of Port Infrastructure). The funds are being used in the execution of earthmoving, paving, public thoroughfare lighting and signage for the industrial zone of Suape. The funds will also be used in the construction of bridges, viaducts, paving, signage and requalification of roads.

Another important job that is already underway is the dredging and de-rocking of the canal that provides access to the external port of the Industrial Complex – a job which has just received a reinforcement of R$ 98.5 million (US$ 44.77 Mio) from the federal government. Currently, works are at 90% of physical progress and completion is scheduled for the end of this year. The amount invested in the work is R$ 340 million (US$ 154.54 Mio) of which R$ 200 million (US$ 90.90 Mio) is provided by the government of Pernambuco state and R$ 140 million (US$ 63.63 Mio) by the ‘Secretaria Especial dos Portos’ (SEP - Special Agency for Ports) with funding from the federal government’s ‘Programa de Aceleração do Crescimento’ (PAC - Program for Acceleration of Growth).

According to Victor Vieira, Director of Engineering and Environment for Suape, the job is strategic for the growth of Suape since it will enable the arrival of supertankers with oil supplies for the ‘Abreu e Lima Refinery’ (aka Rnest – Refinery of the Northeast). The canal, which is six kilometers long and 210 meters wide, is being deepened from 16 to 20 meters.

Suape is a port with naturally deep water and already receives large sea-going vessels. Nevertheless, the conclusion of dredging will enable the arrival of other types of vessels, among which the Suezmax which can measure as much as 280 meters in length and can carry up to 170 thousand tons of cargo (170,000 GT - gross tonnage).  Presently, Suape receives over 1,300 ships per year which move, for example, containers, fuels, wheat, and project parts.

The program for qualification of infrastructure includes interventions in ports, highways, railways, port back-up areas and environmental research. During the implementation phase, according to information released by the state government, some two thousand new job positions will be created.

Among the proposed works are the duplication of the ‘Tronco Distribuidor Rodoviário Norte’ (TDR-Norte / North Highway Hub) and the implementation of the Cabo de Santo Agostinho beltway (Suape Expressway). The funding also provides for the implementation of light rail transit (LRT) for public transportation of passengers between the existing Cajueiro Seco and Cabo de Santo Agostinho terminals and the Massangana Rail/Bus Station (still to be restored) inside the complex.

A expectativa é de que seja recuperada a linha férrea, construídas novas estações, implantados viadutos – um ferroviário e um rodoviário – e restaurada uma ponte. No porto, será reforçado o entroncamento de proteção do aterro. Os cabeços ? Norte e Sul da abertura dos arrecifes para acesso ao porto interno também receberão obras de proteção.

It is expected that the railway line will be recuperated, new stations will be built, viaducts will be implemented - one for rail and one for motor vehicle traffic - and a bridge will be restored. At the port, the landfill protection junction will be reinforced. The North and South bollards at the opening in the reefs for access to the inner port will also receive protection works

The internal port will have areas dredged for construction of another four wharfs (6, 7, 8, and 9) in the future. The multipurpose wharf will undergo recuperation of its structure. Dredging will also be performed in the naval industry cluster enabling the establishment of new shipyards, according to the government.

The operation further provides for the construction of the ‘Centro de Tecnologia Ambiental’ (CTA – Environmental Technology Center) – a space devoted to the study, research and care of degraded areas, qualification of environmental agents and a center for the production of seedlings equipped with a lab.

Multipurpose Wharf

The Industrial Port Complex of Suape held a public hearing in early July on the works of the Multipurpose Wharf and accesses by road to Cocaia Island. The presentation was made by Victor Vieira, Director of Engineering and Environment, in the auditorium of the Administrative Center. The call for tender specifications shall be released by the end of September and the execution of the works is estimated to take 30 months.

The project is included in the federal government’s Program for Acceleration of Growth (PAC). The initiative calls for the construction of a quay of 380 meters in length at the site and dredging of 5.18 million cubic meters (5.18 million m³) of material from the seabed. The Multipurpose Terminal will cost approximately R$ 400 million (US$ 181.82 Mio) and will be designed to handle, initially, 20 million tons of clinker and the iron ore brought from Piauí by the Transnordestina Railroad; petroleum coke from the ‘Abreu e Lima Refinery’; inputs for the manufacturing of cement and, possibly, soybeans.

Bidding will be conducted in conformity with the ‘Regime Diferenciado de Contratações Públicas’ (RDC – Differentiated Regime for Government Procurement). The winning company will be responsible for building the quay and routes of access, characteristic of the ‘integrated’ (turn-key) contracting regime. It is the company’s responsibility to prepare and develop the basic and executive projects; execute works and engineering services; perform assembly, testing, and pre-operation; and all other operations that are considered necessary and sufficient for the final delivery of the object of the tender contract.

In attendance at the public hearing were representatives of Andrade Gutierrez, Dragabras, OAS, Construcap and Fundações Especiais, among other companies.