Brazil's Port Terminals Sound Alarm Over Tapajos River Dredging Delays

Port terminal lobby groups in Brazil are urging government officials to allow dredging on the Tapajos River, which is crucial for grain exports. The river's water levels have been falling due to a severe El Niño weather pattern, threatening to leave the export route too shallow for barges.

The Brazilian government has not granted permission for dredging, citing technical analysis and consultation with local communities. However, the sector fears a repeat of transport disruptions seen in 2023 and 2024 due to low water levels.

Jesualdo Conceicao Silva, head of the Brazilian port terminals lobby ABTP, stated that 'what's worse is yet to come' as water levels continue to fall. The ongoing decrease could lead to access restrictions from mid-September, affecting grain exports.

The Ministry of Ports and Airports decided not to carry out dredging after reviewing data and discussing the matter with Indigenous people and traditional communities in the region. However, sector group MoveInfra estimated that a four-month disruption would result in losses totaling up to 850 million reais ($163 million) and impacting around 5 million tons of cargo.