Brazil’s iron ore exports could see a significant increase in 2024 if rivers remain at high levels, according to one of the region’s leading logistics companies. The Corumbá region expects to double its iron ore shipments through Uruguay, shipping between eight and 10 million tons, compared to the 4.1 million shipped in 2023. This increase is due to the presence of new participants in the industry that do not have competing mines in other areas of Brazil. However, it is important to note that recurrent droughts have affected the normal flow of rivers, limiting the capacity of barge convoys.
The importance of the Paraguay-Paraná Waterway
The Paraguay-Paraná Waterway plays a crucial role in connecting inland South American soy, beef and iron ore producers with international markets. This waterway connects Paraguay, Brazil, Argentina, Uruguay and Bolivia, allowing the efficient transportation of these products. However, recent droughts have raised concerns as they have reduced river water levels and affected the ability of convoys to operate. This has led companies such as Navios South American Logistics to invest in the expansion of their operations in Uruguay to improve iron ore transportation capacity.
The investment of Navios South American Logistics
Navios South American Logistics has plans to invest around $300 million over the next ten years to expand its operations in Nueva Palmira, Uruguay. The company handles grains, minerals and liquids at this port and also has plans to build terminals at Uruguay’s main port, Montevideo. This investment seeks to improve iron ore transportation and storage capacity in the region, taking advantage of the increase in exports forecast for the coming years.
Conclusions
In summary, Brazil’s iron ore exports could increase significantly in 2024 if rivers remain at high levels, allowing a constant flow of transportation. The Paraguay-Paraná Waterway plays a crucial role in connecting South American producers to global markets, but droughts in recent years have created challenges in transportation capacity. However, companies such as Navios South American Logistics are investing in the expansion of their operations to overcome these challenges and take advantage of the increase in iron ore exports in the region.
