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Amazon rivers carry riches

The region has a central role in the transport of goods, but new port complexes can generate negative social and environmental impacts

Eduardo Laviano

Translated by Silvia Benchimol and Ewerton Branco (UFPA/ET-Multi)

15/06/2023

In the first quarter of the year, more than 103 million tons of cargo went through the 83 ports in operation in the Amazon. Of this total, 78.5% refers to regional shipped products. The commodity dominating the statistics is iron ore, which accounts for 41% of everything that goes into the ships and sail from the Amazon towards different parts of the world. Still on the list, are soy (24.9%), bauxite (9.3%), oil and derivatives (6%) and corn (4%), according to data from the National Waterway Transport Agency.

This is how the region gains a central role in the Brazilian trade balance, since more than a fifth part of national grains leave Brazil through the rivers of the Amazon, with China as the main destination and also the recipient of 63% of all iron ore that travels through the region. It shows a fast and billionaire expansion: between 1993 and 2012, the Brazilian Amazon accounted for 34.18% of the active ports in the country. Today, the number is at 40.76%. Figures allow comparisons. Between 1993 and 2012, investment in port infrastructure in the Legal Amazon was R$5.92 billion, while between 2012 and 2022, investments reached BRL 11.63 billion, showing an increase of 96.45%.

There are focal points distributed throughout the region. One example is that since the passing of a law in 2013 which allowed the creation of private ports on rivers, at least ten industrial ports have been built around the city of Itaituba, in Pará, composing a transport hub that connects the BR-163 to the Tapajos River. Most of these ports are linked to agribusiness giant companies such as Cargill, the Hidrovias do Brasil group, Cianport and Unitapajós, a joint venture between Bunge and Amaggi. Considering all companies together, investments for the installation of port complexes in the Itaituba region amounted to approximately US$ 150 million.

All this movement, however, leaves a trail of social impacts. Jondison Cardoso Rodrigues is a postdoctoral fellow in geography at the Federal University of Pará and researcher on port complexes in the region. He recalls that a port is never just a port. Ports reconfigure the socioeconomic scenario of the places where they are settled, create industrial districts with the support of local governments. They also stimulate and finance the expansion or opening of highways, leading to an increase in the migratory flow to cities with poor infrastructure on health, education, housing and security.

"There is also the impact on fishing, which interferes not only with food, but with one of the main means of obtaining income for riverside communities. In addition, the construction of ports in the region is also related to deforestation, both for building of the ports themselves, as well as of silos and sorting yards. There is an increase in social vulnerability in these cities, as many jobs are created during the installation of the port complex, but they are short lived. After the end of construction, the jobs that brought migrants simply disappear. And another point that has been increasingly reported is land grabbing, a historic challenge in the Amazon", he says.


Ports and agribusiness secured their place on the international scene


The increase in the number of ports in the region responds to some global demands. In the economic dimension, the first decade of the 21st century was marked by a macroeconomic environment of abundant credit and global liquidity, coupled with a boom in commodities that brought economic benefits to Brazil. Concurrently, Chinese Gross Domestic Product grew year after year, accompanied by increasing consumption and more investment in technology and civil construction in the Asian country. These facts strengthened the idea of establishing a continuous system of induced mobility of demand production for goods, in this case, agricultural and mineral commodities. Additionally, there is a political agenda for the production of global infrastructure, encouraged by the G20, the group of 20 countries with the strongest economies in the world, Banks and funds.

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“Brazil decided to step into the globalization game by means of the congenital element of the country, that is, offering raw materials”, Jondison Rodrigues

"In the 2000s, Brazil decided to step into the globalization game by means of the congenital element of the country, that is, offering raw materials. This approach was how Brazil found out to gain importance in the global trade and it explains so many investments in transport and communications in the Amazon. On the port issue, Lula’s and Dilma’s governments carried out more than 30 projects, actions and regulatory frameworks related to ports, from waterway and logistics integration, financing of public banks, with a focus on the group Hidrovias do Brasil and Cargill, and a strong incentive for agribusiness.This neoextractivism model also exhibits neoliberal characteristics and is supported by left and right wing governments. The result is that more than 40% of the ports in the Amazon are owned by national or foreign groups, linked to Banks or investment funds of nation-States. This dynamic generates a cascade effect that is fundamental for the territorial and technical synchronization of these companies within the same territory", says Jondison Rodrigues, remembering initiatives such as the Growth Acceleration Program (2007), the National Plan of Port Logistics (2012) and the Tax Regime to Incentivize the Modernization and Expansion of the Port Structure (2013).

The greatest expression of the agribusiness growth via this synchronized territorialization process can be measured by the transport flow of grains in the so-called Arco Norte, which includes port complexes such as Itaqui, São Luís and Ponta da Madeira (in the state of Maranhão); and in Belém, Barcarena, Santarém and Itaituba (in the state of Pará). Between 2010 and 2022, however, grain handling increased by 181.49% in Brazil – the ports of Arco Norte increased by 693.07%. One fact speaks for itself, during the high soybean harvest, around 1,500 trucks travel daily in Miritituba – Itaituba district – where 15,000 people live.

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"All projects since the 1950s have connected highways with railways, waterways, and ports."

Geographer Andrei Paiva Rodrigues points out that in the medium Tapajós region, some navigable waterways are increasingly being controlled by companies and political groups due to their connection with major production areas and strategic, modern ports. In other cases, waterways provide access and integration to road and rail export modes, enhancing fluidity and circulation options. With more highways, the environmental impact is accompanied by impacts on the way of life in urban areas in the region, often located along the highways.

"The overuse of the river and urban roads, with the increasing circulation and presence of bulk vehicles such as trucks, vessels, and cars, puts significant pressure on urban routes, resulting in excessive traffic, including traffic jams on BR-163, formation of dust clouds, and interference with environmental comfort, with enormous implications for health and the ecosystem," he points out in the study “Cities and Ports in the Central Amazon."


Rodrigues highlights that expansion and modernization initiatives of highways and railways are gaining ground in the municipality of Itaituba and its surrounding areas. For example, there is the railroad project between Lucas do Rio Verde (MT) and Itaituba (known as Ferrogrão, EF-170), with a length of 933 km and estimated investments exceeding R$ 8.26 billion. Additionally, there are plans to complement this project with the construction of two branches: Santarenzinho (between Itaituba and Rurópolis, spanning approximately 32 km) and Itapacurá (in Itaituba, with approximately 11 km in length). Furthermore, the asphalt paving and concession of BR-163, which stretches for 1,009 km and involves investments of R$ 1.76 billion, will connect the districts of Miritituba and Itapacurá in Itaituba to the main port terminals along the Tapajós River and the productive areas of Mato Grosso, Mato Grosso do Sul, and the southern region of Brazil.


Jondison Rodrigues emphasizes that this has always been the natural course for establishing port infrastructure in Brazil.

"All projects since the 1950s, such as the Belém-Brasília connection, have combined highways with railways, waterways, and ports. The more ports, the more highways. The trend is set to continue. There is expectation for the Paraense Railway, for the Ferrogrão and for the removal of the Pedral do Lourenço rapids, which already has a preliminary license, as well as for thermal power plants in Barcarena. It's a domino effect, and here lies a fertile ground for the privatization of territories, rivers, and forests. It's a concept of coloniality, of civilizing other societies to make them productive. There is always this perspective on the Amazon, aiming to modernize the region, bringing technology, and large-scale projects that will solve the problems here. However, we continue to live with many aspects falling behind," he argues.

Socio-environmental obstacles are the main challenge

In May 2023, the non-governmental organization (NGO) Terra de Direitos published a report on the socio-environmental impacts of Cargill's activities in the municipalities of Santarém and Itaituba – Western Pará state.

According to the NGO, the company has been in non-compliance with laws since obtaining the licenses to begin construction of Cargo Transshipment Station in 2000 and starting operations in Santarém in 2003.

In 2004, social movements in the city began protesting against violations that included the lack of presentation of environmental impact studies, which consequently led to the irregular occupation of Vera Cruz beach for the construction of grain storage silos and a 580-meter dam. Since then, the reports of violations in the licensing processes and expansion of the port have only increased, and the conflict has never been pacified.

Ten years later, Cargill began establishing itself in another part of the Tapajós River: the municipality of Itaituba. According to the NGO, Cargill's port repeated and intensified a series of violations and promoting socio-environmental impacts in the region, operating with indications of irregularities, and operating with expired license since April 2022.

"Throughout this time, quilombola, indigenous, riverine, and agro-extractive organizations have pointed out the multiple impacts of Cargill's port and the entire soy production chain. There have been numerous irregularities in environmental licensing, with impacts on the river and increased traffic, turning these areas unsuitable for fishing, as they once were. Additionally, there have been impacts on archaeological sites, and no adequate compensation policies have been implemented. The reparation starts with the idea of recognizing the damages caused and ensuring a prior consultation for the license renewal, as well as the enforcement of conditions by the relevant authorities. In Itaituba, there was also no prior, free, and informed consultation. These impacts do not concern only one company and need to be evaluated," says Pedro Martins, legal advisor for the organization.

In a published note, Cargill refutes the accusations in the report and states that they have never been approached by the non-governmental organization Terra de Direitos. "Regarding the Santarém port, the renewal of the operating license was issued by the State Secretariat for Environment and Sustainability in November 2021. It should be clarified that we have never operated this terminal without the necessary authorizations. Regarding the Miritituba transshipment station, it is not true that this unit has been operating without a license since April 2022. It should be clarified that the license was originally valid until April 2022, but in December 2021, we submitted the application for the renewal of the operating license, within the legal timeframe to do so," they affirm.