Ports and Terminals

Vila Velha Port Terminal Achieves 25% Share in Electric Car Volume Handled by Cosco

Apr, 18, 2024 Posted by Gabriel Malheiros

Week 202416

Last March, the Vila Velha Port Terminal (TVV), located in Brazil’s Espírito Santo and managed by the logistics group Log-In Logística Integrada, took part in the “Global Partner Conference,” a worldwide gathering of partners hosted by the logistics company Cosco Shipping Specialized in Guangzhou, China. During this event, Cosco presented its Strategic Growth Plan for the upcoming years. At the conference, TVV received recognition for housing a 25% share in the volume of electric cars transported by the Chinese company, ranking second only to the Port of Barcelona.

Additionally, at a specific Vehicle Supply Chain forum during the event, among the four invited terminals, the Vila Velha Terminal, represented by its commercial manager Marhmed Hashemj, showcased its integrated logistics solutions for the Chinese vehicle market. The terminal emphasized its operational capabilities and commitment to developing new business ventures, reinforcing its multipurpose characteristic.

The Flat Rack model for transporting electric vehicles, chosen by TVV and Cosco, represents a pioneering initiative in Brazil. Before this, only Chile and Ecuador offered this operation in South America. The service aims to bolster the Brazil-China economy and business by facilitating the exclusive entry of Chinese electric cars through Vitória (ES).

Pedro Rizzo, the Operations Manager of the Vila Velha Terminal (TVV), underscores the significant scale of operations achieved by TVV. “Despite being a relatively small terminal, we offer logistics solutions that have had a substantial positive impact on the Espírito Santo market. We boast the most innovative operation in the Americas, not only facilitating the electric car operation but also catering to other customers and cargo, aligning with our positioning as a multipurpose terminal,” he comments.

Advancements in 2023

Throughout 2023, TVV received a total of 44,600 electric vehicles from China in partnership with Cosco. This collaboration has enabled the Chinese shipping company to claim a notable share equivalent to 30% of the volume of containerized vehicles handled.

According to Gustavo Paixão, the Director of Terminals at Log-In, “This operation initially started modestly but has since developed into a well-structured endeavor, presenting a significant opportunity for the Espírito Santo market to enhance not only port activities but also the entire logistics chain, including storage and truck transport. This has significantly exceeded expectations and propelled the state of Espírito Santo forward,” Paixão explains.

In this process, the investments made by Log-In in TVV were pivotal for executing operations and meeting demand. These investments include R$42 million to establish TVV as the first port terminal in Latin America with remote container operation, as well as an increase in the number of equipment to serve more ships. Over the past three years, total investment in innovation at the Terminal amounted to approximately R$150 million.

“With these operational enhancements, both TVV and Cosco have gained efficiency, agility, quality, and safety, contributing to operational excellence and cargo security,” Paixão emphasizes.

Visit to China

During the trip to China, the TVV team visited the Port of Taicang, where electric vehicles are shipped to be received at TVV after a non-stop voyage. Additionally, they explored Cosco’s supply area to gain insights into the automotive sector, review ongoing operations and businesses, and propose opportunities for enhancement to optimize ship performance.

At the Forum, Cosco, along with its partners, proposed a green and low-carbon development initiative, advocating for a sustainable maritime transport system and collaborative efforts to drive green transformation across the industrial chain. TVV is aligned with its partner’s sustainability strategies.

“Our visit and participation in the Forum enhanced TVV’s visibility in the international market and expanded networking opportunities with several Cosco terminals and service providers. This elevates the terminal as a viable option in Brazil for various operations, beyond just vehicles, strengthening ties with China and positioning Brazil and Espírito Santo as global consumers and exporters,” Paixão concludes.

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