Concession notice for Madeira River Waterway in Rondônia

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The National Waterway Transportation Agency (ANTAQ) has published documents related to the Madeira River Waterway concession project in Rondônia, Brazil.

With the concession, it will be possible to avoid fuel shortages and reduce the risk of product shortages in Rondônia to almost zero. This is because the Madeira River Waterway is responsible for transporting these inputs to the state. It will be possible to transport cargo for longer, including during the dry season, and to receive larger vessels with larger quantities of cargo. During this period, the minimum depth of the Madeira River will be 3.5 m(with a draft of 3 m). By maintaining the draft and using appropriate signaling, cargo carriers will gain efficiency, since vessels will be able to operate at night and with more cargo during the dry season. With this gain in efficiency, ANTAQ estimates that shipping companies will reduce their costs by around 24%, compared to a rate of less than one real per ton. The Madeira River Waterway is also a key route for the flow of grain production from the states of Mato Grosso and Rondônia, as well as for the movement of passengers in the region. In addition, under the project, the waterway will mainly transport soybeans; corn; liquid bulk and fuels; vehicles; fertilizers; containers; and other general cargo. 

The Madeira River Waterway covers the stretch between Porto Velho and its mouth, covering the states of Rondônia and Amazonas, with an extension of 1,075 km. Dredging, demolition, adequate beaconing and signaling services, as well as the maintenance and operation of six Small Public Port Facilities (IP4s), planned for the concession, will ensure navigation safety and reliability. The estimated direct investment for the 12-year concession is BRL 109 million (US$ 19.8 million), with an estimated Opex of BRL 477.73 million (US$ 86.8 million). In addition, BRL 561.35 million (US$ 102 million) will be contributed to the project from the sale of Eletrobras. 

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