The Panama Canal signed a memorandum of understanding (MoU) with the Brazilian Port of Itaquí, to promote the shipment of grains and other cargoes in the commercial route of northern Brazil to countries located in the Pacific, through the Canal.
Namely, the Brazilian port of Itaquí, is placed in the city of São Luís, Maranhão. The specific port is the closest Brazilian terminal to the Panama Canal and has the features needed, such as infrastructure and connectivity, for transferring cargo to Asian markets.
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Under the memorandum, the parties will cooperate to explore the advantages that will be brought from the expansion of the Canal and the optimization of the existing internal transportation in Brazil that is used to move soybeans and other cargo from Brazil through the Canal from Panama.
This MoU aspires to promote the use of Panama Canal, focusing on the often use of the panamax locks, in order to transmit grains, mainly soybeans and corn, from the north of Brazil to markets in Asia.
We expect a very productive relationship as we work together on our mutual goals of improving and facilitating global trade.
…noted Jorge Luis Quijano, Panama Canal Administrator.
The agreement enables the conduction of marketing activities, exchange of market studies, information on commercial flows and modernization and enhancement programs.
Currently, Brazil is characterised as the main producer of grains, since in 2017 the Port of Itaquí mobilized 19.1 million tons of cargo.
Finally, the signing of the agreement is taking place at a time when Brazil’s grain exporters enjoy considerable increases in cargo volumes. The transportation of bulk carriers through the Panama Canal represented about 22.2% of the total transits of the interoceanic highway during 2018.
