After a long wait, the debates concluded and the Federal Government delivered this Tuesday, the 11th, the consolidated text of the Bill of Law for the “BR do MAR” plan that intends to encourage and promote cabotage in Brazil.
The BR DO MAR Project is quite daring and carries out a complete reform in the regulation of cabotage Maritime Transport. The name alludes to a logistical alternative to the highway. It is an important measure of the Ministry of Infrastructure, comparable in importance to the large highway construction programs in Brazil that began in the 60s.
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Cabotage
Cabotage is maritime transport carried out between ports in the same country. Standing out for being a safe, efficient, low-cost transport and environmental impact.
Cabotage navigation is one of the most logical modes of transport for Brazil, due to the continental dimensions that we have. There are more than 8,5 km of coastline. In addition, 80% of the Brazilian population lives within 200 km of the coast and most of our industry is concentrated near the sea, strengthening our vocation for cabotage.
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However, the Brazilian logistics matrix is still very dependent on road transport. However, cabotage has been growing at double digits in recent years, especially after the truck drivers' strike demonstrated our logistical fragility and how much we depend on highways.
What is the main objective of the BR do mar project?
The objective of the Ministry of Infrastructure with the Bill is audacious: they intend to jump from 1,2 million TEUs (unit equivalent to a 20-foot container) in 2019 to 2 million TEUs in 2022.
They also estimate an increase in the fleet of ships carrying out cabotage by 40% over the next three years and that cabotage growth will be approximately 30% per year. For this to happen, the project explores four fundamental axes: fleet, naval industry, costs and ports.
Fleet and Naval industry
The Government eased the restriction on the chartering of foreign vessels to carry out the cabotage service, creating several exceptions, in addition to allowing vessels that are built abroad to fly the Brazilian flag.
In the naval industry, the Government intends to promote the maintenance and repair of vessels, allowing the use of resources from the Merchant Marine Fund for foreign and national companies that use Brazilian shipyards.
Port costs and logistics
The cost reduction will be through the reduction of bureaucratic procedures and regulatory adjustments, in addition to the creation of a national policy for the sector. In port logistics, there are plans to encourage special cabotage operations with the provision of temporary contracts directly with the Organized Port Administration, without the need for an auction if only one company is interested.
The objective is to speed up the entry into operation of terminals dedicated to cabotage.
Finally, BR do Mar encourages the education, training and qualification of national seafarers, reaffirming the need for 2/3 of the crew to be formed by Brazilians. In addition, it stipulates that the employment contracts of the crew of chartered foreign vessels follow the labor standards of the country of the flag flag.
CREDITS: Larry Carvalho – Senior Partner – Promare