Brazil ethanol transport canal construction begins

13 September 2011 19:20  [Source: ICIS news]

CAMPINAS, Brazil (ICIS)--Brazil-state owned Transpetro and Estaleiro Rio Tiete have began construction of Estaleiro Rio Tiete, a new canal to transport ethanol through Tiete-Parana waterway, Petrobras officials said on Tuesday.

State energy firm Petrobras said the construction of the waterway will replace 40,000 truckloads/year, reducing pollution and saving fuel.

The fleet, which will cost $239.1m (€176.9m), will be built in Aracatuba, Sao Paulo.

Brazilian president Dilma Rousseff and the mayor of Aracatuba, Cido Sergio, were present at the ceremony marking the beginning of construction on Tuesday.

The operation of the fleet is scheduled to begin in 2013, when the terms for new terminals will be established along the waterway. 

According to Petrobras, each convoy will consist of four barges and one tugboat, with a capacity to transport 7.6m litres. 

When fully operational, the volume transported should reach 4bn litres/year of ethanol. 

The operation of the convoys by Transpetro is part of Promef Hidrovia, a new project of the state-owned company, inspired by the formats of Promef (Fleet Modernization and Expansion Programme), which ultimately revived the Brazilian naval industry, with its order for 49 oil tankers from domestic shipyards.

The Integrated System for Transportation of Ethanol of PMCC contemplates, besides the operations on the Waterway, the construction of new pipelines, collection centres and terminals.

Also, the construction of the waterway will follow the standards of Promef, including manufacture in Brazil, domestic content of 70%, and international competitiveness of the shipyards.

The bid was opened to the participation of both existing shipyards and, also, to units to be installed for the purposes of the dispute, the so-called ‘virtual shipyards', which is the case of Rio Tiete.

By: Leo Siqueira
+1 713 525 2600

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