Paranaguá expects exports to increase by 32.5% in 3Q

The Port of Paranaguá is anticipating a bumper third quarter for export grain shipments. Last year, the port dispatched 7.11mt (million tonnes) of bran, corn, sugar and soya, but this year is expecting this to increase by 32.5% to a possible 9.42mt. The reason for the hike is the start of the new (second of the year) corn crop.

However, overall loading efficiency has improved too, according to Gabriel Vieira, operations director at Portos do Paraná, the body that oversees the port. In May, for example, exports posted a new record figure.

“Our performance this year has improved,” stresses Vieira. “Vessels have been able to load more and thus ensure more efficiency in operations.” This has resulted in better waiting times, with vessel turnaround times cut.

Vieira notes that while much of the productivity gain is down to the recent dredging of the berths, being able to handle the forecast hike in traffic during the third quarter will nevertheless be a big challenge. The one element that could negatively impact the major export season is rain, which not only hits port efficiency but can also damage yields on the farms.

However, if all goes according to plan, Paranaguá should handle an estimated four million tonnes of soybeans, 1.92mt of sugar, 1.9mt of corn and 1.59mt of soybean meal during the third quarter.

Although export corn will be perhaps the main driver in the coming months, soya prices are once again rising, which should boost exports, in turn releasing capacity to enable more corn to be stored at the ports. Indeed, Brazil is currently on course to produce 10mt of additional corn exports this year, with overseas demand higher than usual. The second annual crop of corn may well produce in the region of 14mt and will enter the market during the second half of July.

Sugar exports, which are handled by the Pasa Terminal at Paranaguá, are also burgeoning. Cane production is good and prices for the crop attractive, especially given an expected crop failure in Thailand and India. Significantly, the sugar cane harvest in Brazil began late this year and only intensified in the second half of April. That means that exporters are now having to rush to fulfil contracts.