Brazil predicts huge cabotage spend

Brazil could and should be experienicng a “boom in shipbuilding for cabotage services” over the coming years, according to the new executive VP of Brazilian-flag ship owners’ association Syndarma. Roberto Galli, who takes over the reins from Claudio Decourt this week, said that about 44 new cabotage vessels – costing around $2.3Bn – would have to be built “in the next six years” to meet the growing demand for coastal services in Brazil. The figures came from detailed studies Syndarma has carried out. Galli told Fairplay: “A ship is a big investment and is for the long term, so it needs a detailed study like this one. The biggest investment will be made in the container ship sector.” He said that another 19 box ships, to cost $1.3Bn, will be built in Brazil by 2013, with five already ordered by Log-In (ex-Docenave) and four by Hamburg-Süd subsidiary Alianca. Others would soon follow, Galli predicted. He added that 16 bulk vessels, costing $750M, would also be ordered – as well as another six chemical carriers (for $38M) and three small tankers ($33M) and would be required within six years to meet demand.