Ports and Terminals

CMA CGM to stop calling at Port of Natal; BRL 5 mln loss per year expected

Oct, 31, 2022 Posted by Gabriel Malheiros

Week 202244

CMA CGM ships will stop calling at the Port of Natal in about one year. The company has already confirmed its detachment from the Rio Grande do Norte state port authority Codern. As a result, if the state-owned company is unable to attract new operators, it may have to reduce its operations by half, losing nearly BRL 5 million per year.

Exports of the products produced instate may have to migrate to Ceará with CMA CGM shutting down its services in the Port of Natal. The company is on track to only operate with ships above 200 meters, which is not currently possible in Natal since there aren’t adequate defense systems for such ships to maneuver at the mouth of the Potengi River and cross the Newton Navarro Bridge due to its height limitations.

CMA-CGM, a French maritime transport and containerization company, is responsible for half of the operations in the port of Natal.

The carrier company chose not to comment, but the director of Codern said that CMA CGM’s motivations lie in the lease of an area in the Port of Mucuripe, in the state of Ceará. The site, larger than the Port of Natal itself, was put up for bidding and caught the interest of the French company. “We asked the company if that was true and if they would also stay with us. They explained that their ships of up to 200 meters would be deactivated and that they will begin to operate with ships of 260 meters that do not enter the Port of Natal,” explained him.

This restriction is due to the Newton Navarro Bridge’s height and a lack of fenders. As a result, only boats with a height of fewer than 52 meters and a length of fewer than 220 meters are permitted to enter the Rio Grande do Norte terminal. Fenders are structures that must be installed at the base of the bridge’s columns to ensure safety and to withstand the impact of a collision without causing damage to the bridge.

On top of that, Codern’s director suggests the possibility of entering the port after 5 pm is an advantage for the Port of Mucuripe and could attract more cabotage navigation operations. At the Port of Natal, maneuvering vessels during the later hours of the day get more delicate due to the river’s characteristics. The ships that do enter the port after 5 pm end up staying overnight, generating additional expenses with daily rates collected at the port.

Under these circumstances, if other operators do not take the place of CMA CGM, the losses endured by the Port of Natal could reach millionaire figures. “Our revenue will drop sharply by about 50%. This is equivalent to around R$ 5 million per year. [CMA CGM] said the month of October 2023wouldl be their departure date. Still, we are preparing to see their ships only until the end of this harvest. We are working hard so that other alternatives appear. We are in contact with other operators, including another large shipowner, to continue providing a channel for fruit exports or other products under the BR do Mar law,” said Carlos Eduardo of Codern.

As he points out, one advantage is that the fruits of the Mossoró region are grown between the Port of Mucuripe in Ceará and the Port of Natal, which stands as an advantage due to its proximity to other continents. “We are at the closest point between the American continent and Europe/Africa. This is critical because time, money, and fruit shelf-life all boil down to the same thing. In comparison to exports from Fortaleza or Recife, at least two days are gained if fruits are exported from Natal,” he suggests.

Source: Tribuna do Norte

To read the full original article, please go to: http://www.tribunadonorte.com.br/noticia/porto-de-natal-saira-da-rota-da-cma-cgm-e-perdera-r-5-milha-es-por-ano/550364

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