CIEAM promotes Logistics Forum in Manaus with a focus on the risk of drought in rivers

CIEAM promotes Logistics Forum in Manaus with a focus on the risk of drought in rivers
CIEAM promotes Logistics Forum in Manaus with a focus on the risk of drought in rivers

The main players in the logistics sector will participate on the 2nd and 4th of April in the ninth edition of their “Logistics Forum”, an event promoted by the CIEAM (Center for Industry of the State of Amazonas) Logistics commission, starting at 2:30 pm on both days , at the Celso Piacentini Auditorium at CIEAM, in Manaus (AM).

During the Great Drought of 2023, the Amazonas industry had an additional cost of R$1.4 billion in its logistics operation, due to problems caused by difficulties in transporting inputs. This value includes, for example, fees and additional costs charged by shipowners throughout the operation and even air freight was used in more urgent cases.

According to CIEAM, preliminary studies indicate that the levels of the Solimões river, in Tabatinga, and the Negro river, in Manaus, are below their historical levels, which worries PIM companies, despite the possibility and hope that the rains could reverse this situation.

Currently, spending on waterway transport in Amazonas is estimated between 3% and 7% of GDP, which represents something between R$4.8 and R$11.2 billion per year. Amazonas’ GDP was R$160.2 billion last year, representing a growth of 6.53% over 2022.

“According to our studies, the ideal would be for the cost of this logistics to be half that amount to recover the competitiveness of the Manaus Free Trade Zone (ZFM)”, explains Augusto Rocha, coordinator of the CIEAM Logistics commission. Therefore, according to CIEAM, these costs should mean spending between R$2.4 and R$5.6 billion (1.5% to 3.5% of the state’s GDP).

Furthermore, CIEAM highlights that, annually, investment in local infrastructure is approximately 0.22% of GDP, which represented R$352 million in relation to the 2023 GDP.

“We defend a minimum investment of around 2.5% of local GDP (around R$4 billion, compared to the GDP of 2023) per year, during the next decade, to reduce the logistical bottlenecks that exist today and offer greater logistical security for industries operating in the Manaus Industrial Pole (PIM), reducing inequality in Amazonas”, highlights Rocha.

“What if the 2024 drought was worse than the 2023 drought?”

The CIEAM “Logistics Forum” will have the theme “What if the drought in 2024 is worse than in 2023?”. The objective of the event is to discuss with shipowners, industry executives in the region and government representatives the action plans for a possible drought scenario in 2024.

During the meetings, studies will be presented that will propose solutions, by shipowners and the government, measuring the risks of logistical operations in Amazonas if there is a new drought this year.

For the expert, dredging the waterways alone is not the solution, as it did not achieve satisfactory results in the Great Drought of 2023. Dredging was an action that did not resolve last year. Only the rain helped.

“Of course, the 2024 drought may not be as severe as it was in 2023, after all there are already positive signs in the 12th Hydrological Bulletin of the Amazon Basin, issued by the SGP/CPRM (Brazilian Geological Service)”, says the executive. According to him, it is very important that research is carried out to better understand the phenomenon of floods and ebbs in critical points of the Amazon waterways that reach Manaus. “After this research, it will be possible to indicate the best solution. Without this, we will continue to rely on solutions that are not precise and waste resources without success”, concludes Augusto.

Event schedule

On April 2nd, next Tuesday, the importance of studies to understand the phenomenon of flooding in critical points of the Amazon “waterway” will be discussed. The table will be attended by executives Erick Lourenço, regional manager of Aliança Navegação e Logística, who will address the theme “Aliança, your starting point for all of Brazil”; and Gustavo Paschoa, CEO of Norcoast Logística, who will give the presentation “Norcoast – A new cabotage option and possible alternatives for the 2024 drought”. Augusto Rocha will give a lecture with the theme: “The industry’s vision of waterway traffic”.

On April 4th, Thursday, the debate will address the possibilities of a possible new drought and what are the main points for transforming the Amazon River into a waterway, ensuring the transit of contender ships. Businesspeople Jorge Barroso, CEO of SNPH (State Superintendence of Navigation, Ports and Waterways), will take part in the conversation, who will speak about “SNPH’s vision on the potential drought of 2024”; André Lysâneas Teixeira Carvalhaes, sea and war captain at CFAOC (Western Amazon River Captaincy), who will reflect on the “Possibilities and limitations of the Navy in the face of a drought scenario”; and Erick Moura, director of waterway infrastructure at DNIT (National Department of Transport Infrastructure) in Brasília, who will present the topic “Actions by the DNIT Waterway Infrastructure Directorate to face the possible drought in 2024”.

*With information from the Advisory

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The article is in Portuguese

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