The Panama Canal has signed an agreement with Port of Itaqui, located in the northeastern region of Brazil, to promote the shipment of grains and other cargoes.
Under the Memorandum of Understanding (MOU), the parties would target shipments in the commercial route between the north of Brazil through the Panama Canal to destinations located in the Pacific Ocean.
With this agreement, the Panama Canal looks to promote the use of the Panamax Locks for grain transits originating in northern Brazil and traveling to markets in Asia.
“We look forward to a very productive relationship while we work together on our mutual objectives of improving and facilitating global trade,” said Panama Canal Administrator Jorge L. Quijano.
The agreement will allow the Panama Canal and Port of Itaqui to conduct joint marketing activities and exchange market studies and information on trade flows to support modernization and improvement programs.
Today, Brazil ranks among the main producers of grains worldwide and growth prospects are encouraging. In 2017, the port moved 19.1 million tons of cargo, becoming an important logistic corridor for the central-western region of Brazil.
The MOU’s signing comes at a time when Brazilian grain exporters are enjoying considerable increases in shipment volumes. From a Panama Canal traffic standpoint, dry bulk vessels transporting grains and other dry commodities accounted for roughly 22.2 percent of the waterway’s total oceangoing commercial transits during its fiscal year 2018, which covers the period from October 1, 2017 to September 30, 2018.