Incentive Program for Cabotage Navigation and Foreign Vessels

Published in the Union Official Diary of this Friday, August 30, the approval of a the resolution of the Investment Partnership Council of the the Presidency of the Brazilian Republic with the directives for police making regarding an Incetive/Stimulation Program to cabotage transportation to be named “BR do MAR”.

The policy aims to:

  • Increase the supply and quality of cabotage transport;- Encourage competition and competitiveness in the provision of cabotage services;
  • Increase the availability of fleet in the national territory; encourage the training, training and qualification of national seafarers;
  • Stimulate the development of the national shipbuilding industry for the construction, jumborisation, conversion, modernisation, docking and repair of vessels used for cabotage navigation;
  • Review the interrelationship of cabotage navigation policies to shipbuilding policies;
  • Encourage special cabotage operations and investments in port facilities to meet cargoes type, route or market not yet existing or consolidated in Brazilian cabotage;
  • Optimise the use of resources from the collection of the tax – additional freight for the renewal of the Merchant Navy (AFRMM).

The Program Council considered that cabotage waterway transport was comparatively more efficient, safer and had lower environmental costs and impacts than road or rail. It has a greater participation of the waterway modal, especially cabotage transport, in the country’s logistic matrix is the most effective and expeditious measure to balance the excessive expenditures of the Union, States, Federal District and Municipalities in road and rail infrastructure projects;

The Council also considered the need to allocate areas located within public ports for temporary use and viability of investments to meet cargoes in type, route or market not yet existing or not consolidated in Brazilian cabotage, seen as essential for the reconfiguration of the logistics matrix of the country; the feasibility of the cabotage stimulation policy encompasses measures that optimise the use of Union revenues from the collection of the Additional Freight for the Renewal of the Merchant Navy (AFRMM), including to ensure investments in coastal navigation safety by the Brazilian Navy;

Actions and other measures to encourage cabotage, in particular those allowing greater participation of foreign vessels in Brazilian cabotage, will be considered of relevant public interest and strategically prioritised for all legal purposes; the powers assigned to the Special Secretariat of the Investment Partnership Program to strengthen national policies for the integration of different modes of transport of persons and goods, in accordance with national, regional and urban development, national defense, environmental, and environmental policies. security, formulated by the various spheres of government.

The Ministry of Infrastructure already foresees, for 2025, that the cabotage will have a 29% participation in the Brazilian transport matrix, through 205 waterway interventions, at a cost of R$ 15,8 billion.

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