Portuguese 
English 
Spanish 
2 min of reading 
Government Decided to Approve Text Opening Cabotage Market to Ships from Other Countries
Among other points, the PL 4199/2020 released by the government progressively allows the use of foreign ships in cabotage navigation without the obligation to contract the construction of vessels in Brazilian shipyards. With the publication of the new government legislation, companies will be able to charter a bareboat, that is, rent an empty ship for use in cabotage navigation.
Read Also
Foreign Ships Will Be Released One per Year by the Government
Under the terms of the cabotage matter, after one year of the law’s enactment, there may be two ships; in the second year, three ships; and in the third year of validity, four vessels.
From then on, the quantity will have no restrictions according to the government. However, safety conditions defined in regulations must be observed.
-
With a capacity for 9,100 vehicles, solar panels on deck, and liquefied natural gas engines, the Höegh Aurora is the world’s largest car carrier, and the ship that can embark an entire city’s worth of cars in a single voyage will transition to zero-carbon ammonia by 2027, becoming the first large cargo ship in history to completely abandon fossil fuels.
-
The nuclear submarine that never arrives: The Álvaro Alberto project has accumulated 47 years of development, R$ 40 billion spent since 2008, and may now be delayed until 2037 due to a lack of R$ 1 billion in the Brazilian Navy’s coffers.
-
Portonave is investing R$ 2 billion to modernize the Port of Navegantes and accommodate ships up to 400 meters, but the project depends on the federal government deepening the channel from 14 to 17 meters, a concession that is at the TCU.
-
At 30, 40, or 50, starting over is no longer an exception: 7 high-demand areas in Brazil value experience, business acumen, and digital proficiency
Another important point of the project highlighted by the government concerns the reduction of the Additional Freight Charge for Renewal of the Merchant Fleet (AFRMM) from 25% to 8%. This measure, in turn, leads to a decrease in the cost of import freight, especially for the inputs imported by the Brazilian productive sector.
Cabotage Can Boost the Brazilian Economy from 2021
This diversification of cargo transport is one of the points that makes cabotage a key to developing infrastructure in our country. This thinking is not at all out of touch with reality, when we remember that heavy investment in trucks and highways underpinned Brazil’s expansion inland in the last century.
It is time to use the same commercial power to provide even more structure and efficiency to the use of our coast. A major reason for this is to note that, even with continental dimensions, 70% of the country’s population lives within 200 kilometers of the coast.
Be the first to react!