Brazilian Port Terminals Fear Disruptions as Tapajos River Water Levels Fall

Brazilian port terminal lobby groups are sounding the alarm about potential disruptions to grain exports due to low water levels on the Tapajos River. The river, a major waterway for grain shipments, is expected to fall further with a predicted strong El Niño event. This could leave one of Brazil's main export routes too shallow for barges, causing delays and losses.

Global trading firms like Bunge, Cargill, and Louis Dreyfus move around 15 million metric tons of grains annually along the Tapajos. The Brazilian government has not granted authorization to clear silt from sections of the river, citing technical analysis and consultation with local communities. However, port terminal sector leaders fear a repeat of the transport disruptions seen in 2023 and 2024.

Jesualdo Conceicao Silva, head of the Brazilian port terminals lobby ABTP, warned that 'what's worse is yet to come' due to falling water levels. The ongoing decrease could lead to access restrictions to critical areas from mid-September. On the Tapajos, grains are loaded onto barges at terminals in Itaituba and transported to Santarem and Barcarena ports before reaching export markets.

The Ministry of Ports and Airports decided not to carry out dredging on the stretch between Itaituba and Santarem after reviewing data and discussing with Indigenous people. However, sector group MoveInfra estimates that a four-month disruption would result in 5 million tons of cargo being affected, totaling up to 850 million reais ($163 million) in losses.