The Brazilian Port of Suape, located in the city of Cabo de Santo Agostinho, in the state of Pernambuco, is expected to advance on a feasibility study for a proposed iron ore terminal at the facility, according to a media report from local newspaper Diario de Pernambuco.
The iron ore terminal would receive shipments of the commodity from CSN-owned railway Transnordestina, which is still under construction. Logistics demand from the railway is reportedly smaller than initially forecasted, and as such, the state of Pernambuco has asked Transnordestina to provide more precise information on the delayed railway, and how much iron ore it would bring to the port.
The Port of Suape reportedly wants to adapt its proposed iron ore terminal to the expected iron ore demand that should come from the uncompleted railway. The Transnordestina railway is 52 percent complete.
The railway was initially expected to transport about 17 million mt of iron ore per year to the Port of Suape. However, Transnordestina said in recent public hearings the capacity is expected to be closer to 10 million mt/year.
“Without knowing how much freight will be shipped [through the railway], the decision to build an infrastructure [at the port] is compromised,” said the president of the Port of Suape, Marcelo Bruto.
“We can’t build a terminal for 17 million mt of iron ore and then receive almost half of it,” Bruto said.
A solution to the project should be presented on June 3, but could then be postponed until August 3. The proposed iron ore terminal has an estimated budget of BRL 11.2 billion ($3.41 billion).