Ship Grounded For 131 Years In Itajaí Will Be Removed To Allow Larger Ships Into The Channel Of The Third Largest Port Complex In The Country, After R$ 689 Million Package.
The wreck of the ship Pallas, which occurred 131 years ago in the channel between Itajaí and Navegantes, in the North Coast of Santa Catarina, is about to have a new chapter. Buried under mud and split in half at the bottom of the Itajaí-Açu river, the steamship that sank in 1893 during the Revolta Armada has become, over time, not only part of Brazil’s political history but also an obstacle to the modernization of the region’s port complex.
Now, the federal government and port authorities are preparing for its removal in a plan that aims to allow the entry of larger ships, up to 400 meters long, into Brazil’s third-largest container port complex.
Historical Wreck Blocks Logistical Expansion
Comprised of eight terminals, including the Public Port of Itajaí and the Port of Navegantes (PortoNave), the Port Complex of Santa Catarina represents 13.03% of the national market and handled 14.17 million tons in 2024, coming behind only the ports of Santos (SP) and Paranaguá (PR).
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However, the presence of the hull of the ship Pallas has limited the operation of large vessels, preventing the channel from reaching its maximum potential. Currently, ships up to 350 meters can operate in the area. With the removal of the wreck and other structural works, the complex aims to attract ships from 366 to 400 meters, expanding its annual handling capacity by up to 35%.
Removal Of Wreck Pallas Will Cost R$ 23 Million
The ship Pallas, built in England in 1891, was incorporated into the Brazilian fleet the same year and transported passengers and supplies between Rio de Janeiro and Buenos Aires. On October 25, 1893, it sank in Itajaí during an episode still shrouded in mystery but linked to the Revolta Armada, a movement that attempted to depose President Floriano Peixoto.
Research from the Oceanographic Museum of Univali, led by Jules Soto, indicates that the captain refused to cooperate with the rebels and intentionally ran the vessel aground. Since then, the ship has been buried under sediments and looted over the decades.
The removal will be conducted by the Port of Santos, the current manager of the Port of Itajaí, with a projected budget of R$ 23 million. The process will begin with the obtaining of licenses and archaeological studies, including a Salvage Archaeological Survey required by Iphan (National Institute of Historic and Artistic Heritage), which has already been activated to authorize the removal of the asset from the Union.
“It has been covered with a lot of mud. It will probably have to be cut into several pieces to be removed,” explained Marcelo Peres, executive advisor of the Port of Itajaí.
Port Modernization In Progress
The wreck is just one of the obstacles to port expansion. Currently, the channel has a depth of 14 meters, but it is necessary to reach 16 meters to accommodate larger vessels. Additionally, the complex faces structural challenges: two generators are burned out at the Public Port, and the structure was closed for a year between 2023 and 2024, causing operational delays.
To address the bottlenecks, the federal government announced in May a package of investments of R$ 689 million by 2030, which includes:
- Removal of the ship Pallas
- Dredging of the channel
- Reinforcement of the electrical grid and acquisition of new equipment
- Reconfiguration of the Navegantes Jetty (estimated at R$ 64 million and planned for 2028)
- Construction of a pier for cruise ships, with an estimated R$ 300 million
According to João Paulo Tavares Bastos, superintendent of the Port of Itajaí, the goal is to recover the competitiveness of the complex, which he considers to be “five generations behind”.
Regional Economic Impact
Itajaí currently has the highest GDP in Santa Catarina and, according to data from the federal government, was the municipality that collected the most from imports in Brazil in 2023, with US$ 13.1 billion (about R$ 64 billion).
With the removal of Pallas, the expectation is to further enhance the logistical capacity of the region. PortoNave, for example, expects to increase its handling from 1.5 million to 2 million TEUs (20-foot containers).
“This operation will allow for more safety in the channel and provide greater competitiveness to the complex, as well as enable us to operate large vessels,” said Osmari de Castilho Ribas, director of PortoNave.
Historical Memory And Technical Operation
Although the removal aims at economic expansion, authorities also ensure the historical preservation of the wreck. According to the presented plan, parts of the vessel will be stored and may be integrated into future exhibitions, recognizing the historical value of Pallas as Brazilian submerged heritage.
The operation will be carried out amid strong currents, low visibility, and heavy ship traffic, which will require technical precision and safety.
For specialist Egídio Martorano from Fiesc, “the work is essential for the adjustment of the port to larger ships, requiring adjustments in the turning basin and dredging of the channel. This adjustment depends on the ship.”


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