Naval sector closes 2024 with authorized investments of BRL 31 billion, largest amount in 12 years

Brazil's naval industry and port sector finished 2024 with their best performance in over a decade. Fueled by funds mobilized through the Merchant Marine Fund (Fundo da Marinha Mercante/ FMM), the industry secured BRL 30.8 billion in approvals for more than 430 new projects. These included new vessel construction, repairs, dry-docking, modernization of existing units, shipyard expansion, and new port infrastructure. When combined with 2023 figures, the Ministry of Ports and Airports (Ministério de Portos e Aeroportos/MPor) prioritized approximately BRL 45 billion for 1,300 projects, fostering economic and social development throughout the country.

Silvio Costa Filho, Minister of Ports and Airports, emphasized that the Federal Government is prioritizing and restarting projects that had been neglected by the previous administration. He noted that the amount approved over the past two years more than doubled what the previous administration mobilized over its entire four-year term. Additionally, the number of projects approved by the FMM over the past two years increased by 70%, rising from 768 projects between 2019 and 2022 to 1,300 in the past biennium.

“I am confident that we are on the right path to restore the naval industry’s prominence and the port sector. I say this based on the results we achieved during President Lula’s administration. During the past two years, we approved, through the Merchant Marine Fund, almost BRL 45 billion in modernization and construction projects in the naval sector. This is twice the amount invested by the previous administration. It means more credit, more investments, and a stronger port and navigation sector, which translates into economic growth, job creation, and higher incomes for Brazilian citizens,” stated the minister.

Another expressive figure is the amount allocated for the expansion of the naval industry. From January to December 2024, contracts totaling BRL 5.33 billion were signed, the largest volume since 2012. These resources financed 548 new construction works, most of which in domestic navigation (415), followed by maritime support (94), port support (37), and cabotage (2). Together with funds allocated in 2023, the current government has directed BRL 6.36 billion to new ventures, a 326% increase compared to the previous administration's period (2019 to 2022).

According to the Board of Directors of the Merchant Marine Fund (CDFMM), companies with prioritized projects are eligible to secure financing through partnered financial institutions, including Brazil’s National Development Bank (BNDES), Banco do Brasil, Caixa Econômica Federal (CEF), and Banco da Amazônia (Basa). Funds are disbursed in accordance with the progress and implementation phases of the projects. The first CDFMM meeting for 2025 is scheduled for March 27.

REGULATORY ADVANCEMENTS — Following the publication of Resolution CMN No. 5,189 (Resolução CMN nº 5.189) in December last year, which expanded the benefits from the Merchant Marine Fund (FMM), the Ministry of Ports and Airports expects the sector to further expand the volume earmarked for new projects in the naval area this year. The new resolution reflects the government’s efforts to de-bureaucratize and reduce logistical costs in Brazil, strengthen the sector’s productive chain, and bolster the decarbonization of national transportation. The Fund can finance up to 90% of the value of the submitted projects, with financing conditions varying based on the percentage of national content and the type of vessel, as outlined in the resolution itself.

With this additional incentive, Costa Filho anticipates that 2025 will bring significant progress in prioritizing projects within the port sector. “To strengthen the naval industry and the port sector, a total of BRL 18.5 billion will be allocated without impacting the Ministry’s budget. Additionally, approximately 100 initiatives aimed at modernizing and repairing vessels will be completed, representing a total investment of around BRL 5.8 billion. These advancements underscore the commitment of the Ministry of Ports and Airports and President Lula’s administration to revitalizing and advancing our sector, as well as to bolstering Brazil’s navigation industry and port infrastructure,” concluded the minister.