Port Performance: Brazil, Longview, Virginia

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The Brazilian port sector handled some 460,2 million metric tons of cargo during the first six months of 2014, an increase from a year ago of nearly 5.8 percent, according to data reported by Agência Nacional de Transportes Aquaviários. The Port of Longview is on track to a second consecutive record year, with second quarter and first half 2014 cargo volumes exceeding prior year levels by 17 and 4 percent, respectively. The Port of Virginia slashed its operating loss for FY 2014 to $17.1 million from the $23.4 million loss it had projected in January.

Brazilian Port Cargo Up 5.8 Percent During First Half 2014 

The Brazilian port sector handled some 460.2 million metric tons of cargo during the first six months of 2014, an increase from a year ago of nearly 5.8 percent, according to data reported by the national waterway transportation agency, Agência Nacional de Transportes Aquaviários (ANTAQ).

That included 167.3 million tons shipped through the nation’s organized, or public ports, up 6.0 percent from last year’s 157.8 million tons. Throughout at private terminals (terminais de uso privado) rose 4.7 percent to 292.9 million tons from 279.7 million tons.

Iron ore cargo was the top cargo by weight, with 160.7 million tons, followed by "fuels, mineral oils and products" (99.8 million tons) and containerized goods (46.7 million tons).

The top cargo handling ports during first half 2014 were Santos (44.1 million tons), Itaguai (30.3 million tons), and Paranaguá (20.9 million tons).

The latest numbers underscore the upward trend of Brazil’s waterborne foreign trade, with first half tonnage increasing by 17.7 percent during the past five years.

This year as well, Brazil’s coastwise (or cabotage) trade, generated some 70 million tons of cargo, a 1.7 percent increase compared to first half 2013. Additionally, its inland waterways carried 38 million tons of freight, down from 39.1 million tons in January-June 2013.

Longview’s Robust Cargo Growth Continues in 2014 

Following last year’s record tonnage, the Port of Longview turned in yet another strong performance the first half of 2014.

Second-quarter cargo volumes jumped 17 percent from a year ago to 1.6 million metric tons, bringing the first-half total to 3.9 million tons and a year-on-year increase of 4.0 percent.

Second quarter shipments included 71,419 million board feet of logs, a 6 percent increase from last year and 15,426 tons of bentonite clay, a 166 percent jump. Exports from the EGT grain terminal included 560,773 tons of corn (up from just 23,800 tons re a year ago) and 19,985 tons of soybeans (a 59 percent increase).

Double digit increases were also posted by imported metal products for both the second quarter and first half of 2014.

Last year’s cargo volume hit a record high of 7.4 million tons of cargo, an 18 percent increase from 2012 (Advisory, July 8, 2014).

"This healthy volume growth is a testament to our strong cargo-handling capabilities," said Geir-Eilif Kalhagen, the port’s chief executive officer. "With our diverse equipment and skilled workforce, we’re able to meet a wide range of needs, whether it’s bulk products, breakbulk or heavy-lift cargos. The more our cargo volumes rise, the more we can cement our position as Washington’s third-largest port."

Virginia Port Cuts Operating Losses; Consolidated Revenue Increases 

The Port of Virginia incurred an operating loss of $17.1 million during the fiscal year ending June 30, 2014, down from the $23.4 million loss that had been projected in January.

The port’s consolidated revenue increased to $396.8 million, up 12.6 percent from FY 2012-13, when the operating loss amounted to $15.5 million.

The port’s fourth quarter loss of $655,684, the lowest it has been in the last seven quarters. Through January 2014, the port was operating at a loss of $71,437 per day. That was reduced to $7,205 per day in the fourth quarter.

In calendar 2014, Virginia’s financial losses mounted despite record container volumes. In February, the port initiated an aggressive plan of action to stabilize operations, stem the operating losses and implement process improvements.

"We have made significant progress in the last six months establishing the new organizational structure, making changes on the ground in terminal operations, establishing metrics to measure performance, implementing a new terminal operating system at NIT and making strategic capital investments to deliver improved results," said John F. Reinhart, who took over in February as CEO and executive director of the Virginia Port Authority (VPA). "Those changes are reflected in the improved results for the fourth quarter."

However, he continued: "We are only part way to our goals, and changes will continue. While each of these changes individually is significant the full results will show only when they are all in place operating collectively. This is a process; we are seeing positive results but understand there remains a lot of work ahead of us."

In May, the VPA Board adopted what it characterized as a "break-even" budget for fiscal 2015.