The Brazilian Minister of Ports and Airports, Silvio Costa Filho, has announced investments of BRL1.7 billion ($306 million) from the country's merchant marine fund for the construction of 188 new vessels in the state of Amazonas.
The investments will be split between two companies. LHG Mining will build a total of 128 vessels in Amazonas, with an investment of BRL1.36 billion. A second company, Hermasa, will build 60 bulk barges and two pusher tugs for an investment of BRL384.3 million.
The minister stated that the new investments encourage “sustainability” and the “decarbonisation” of Brazil's logistics, while also promoting job creation in the Amazonas region. He also noted that the new vessels are essential for transporting production and reducing logistics costs.
In his speech, the minister highlighted the benefits of river navigation, noting that each convoy of 16 barges, carrying 50,000 tonnes of ore, corresponds to 1,250 trucks, which eases road congestion.
The announcement was made during a visit to the state where the minister also attended a delivery ceremony for the first iron ore barges for the LHG Mining project and inaugurated the new river port of Envira.