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Brazil’s Paranagua port shuts down berth after fire

Wednesday, 01 November 2023 | 01:00

The administration of Brazil’s Paranagua port shut down for repairs of a berth used for grains and sugar loading after a fire over the weekend damaged a conveyor belt and other structures at the site, local authorities said on Monday.

Paranagua, located in the southern state of Parana, is the second largest port in Brazil and a main hub for exports of grains and sugar, as well as for imports of fertilizer.

The port said the fire has been controlled near the 201 berth, which will remain closed for an unspecified time until the companies operating in the area can assess damages and repair the structures.

The fire will add to logistics problems in Brazil, where waiting times to load grains or sugar shipments have surpassed 40 days in the busiest terminals amid record or near record crops of corn, soy and sugar at the beginning of the rainy season.

“The trade is trying to find any way to ship out sugar,” said a U.S.-based sugar trader, adding that the main sugar terminal in Santos port, the CLI, had a waiting time of over a month.

“This problem will just further complicate logistics,” he added.

Shipping agent Cargonave on Sunday said one Cargill vessel alongside Berth 201 was loading an unspecified cargo from one of the terminals affected by the conveyor belt fire. That vessel un-berthed with a balance of 2,000 metric tonnes to load, Cargonave said, adding it was awaiting fuel in order to depart.

According to fresh Cargonave ship lineup data released on Monday, there were still nine vessels waiting at the 201 berth to load sugar and soymeal, from companies including Bunge BG.N, Tate & Lyle TATE.L, Raizen RAIZ4.SA, Czarnikow and Redpath.

It was not clear if those vessels would keep their position in the line if they have to move to other berths.
Source: Reuters (Reporting by Ana Mano, additional reporting by Marcelo Teixeira in New York; Editing by Steven Grattan, Susan Fenton and Bill Berkrot)

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