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Cabotage: a key role in the logistics strategy that can help reduce the price of products in remote regions of Brazil

Written by Flavia Marinho
Published 01/08/2022 às 14:51
Updated 22/08/2022 às 17:39
cabotage - transport - costs - amazons - Manaus
Cabotage transport – New-Nexco Image

Cabotage transport reduces distances, offers greater security, less damage and lower costs.

It is a challenging task to connect a country with an expressive territorial proportion like Brazil! Unfortunately, there are still several regions that are inaccessible to road or train transport in the country and, therefore, Mercosur Line, a Brazilian shipowner that is part of the CMA CGM Group, a global player in maritime, land, air and logistics solutions, operates multimodal logistics, using cabotage as the main operating mode to provide a seamless service to its customers.

Currently, even with technological advances, there are still populations that, because they live far from large centers, suffer negative impacts in the supply of essential items for their daily lives. According to data from the Povos Ribeirinhos Project, an initiative of the General Secretariat of Missions (SGM) that aims to support actions that benefit the quality of life of Brazilian riverside communities, 37 thousand people live isolated, on the banks of the rivers that cross the largest Brazilian state, the Amazonas, whose access is only viable by boat. In this scenario, cabotage assumes a fundamental role in meeting the needs of the most remote places in the country. 

Value of products transported by ship can be reduced by up to 20% compared to road transport

“Brazil has almost 8 kilometers of coastline, making it easier to choose cabotage as the main means of connection in the country. As a result, the costs of products transported by ship can be reduced by between 15% and 20% compared to road transport. This can positively impact the cost of living in an entire region”, says Valter Branco, Multimodal Transport Manager at Mercosul Line.

Access to a large part of the Amazon is unfeasible by land transport and, therefore, integrated logistics is paramount in order to provide easy access to the Amazon River. In addition, cabotage has additional benefits such as lower cost and more sustainability, since it emits at least five times less CO2 when compared to road transport.

“Our ships transport large batches of containers from the most varied segments, serving the main ports in Brazil. The advance of stock to the distribution centers allows orders from customers in remote areas to be met with greater speed and efficiency; therefore, cabotage transport plays a fundamental role in the logistics and distribution strategy to serve regions that are far from urban centers and that are difficult to access”, explains Alexandre Souza, Commercial Director of Mercosul Line.

The highlight of the moment is the NEXCO (Northeast Express Connection) service, which connects Santos and Suape quickly, stimulating the growth of cabotage between these ports and propelling the company towards a strong growth, above the market. “Growing above the market is the answer we are looking for! This just shows us that we are sailing in the right waters! We appreciate the support and trust of all our customers", says José Roberto Duque, CCO of Mercosur Line.

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Flavia Marinho

Flavia Marinho is a postgraduate engineer with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses. Contact her for suggestions, job openings or advertising on our portal.

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