Brazil's Codeba granted 25-year management rights over 1,371 km of the São Francisco River waterway

en.Wedoany.com Reported - On November 4, Brazil's Ministry of Ports and Airports and the government of Bahia state signed an agreement entrusting the management, operation and maintenance responsibilities of the HN-500 waterway on the São Francisco River to the Bahia State Dock Company (Codeba) for a period of 25 years. The transfer covers 1,371 km of navigable river section, the Sobradinho Lock and 15 small public port facilities distributed across the three states of Bahia, Pernambuco and Alagoas. The project plans investments of BRL 300 million, aiming to re-establish an inland commercial freight corridor through waterway improvement, lock maintenance and restoration of port facilities.

The São Francisco River waterway connects Pirapora in Minas Gerais state with the Juazeiro area in Bahia state and the Petrolina area in Pernambuco state, and is an important water transport route for agricultural and industrial goods from Brazil's interior to regional logistics hubs. This management transfer involves some administrative and operational responsibilities previously borne by Brazil's National Department of Transport Infrastructure (DNIT); Codeba will be responsible for waterway operation, maintenance, upkeep, restoration and management of facilities along the route. The waterway and port assets remain publicly owned, DNIT continues to serve as the agreement's supervisory body, and the transfer period for existing operating contracts and related operations is a maximum of 90 days.

The BRL 300 million plan is mainly scheduled for implementation in the first six years after the management delegation. According to preliminary plans, waterway improvement will proceed in three sections, covering approximately 300 km, 600 km and 500 km respectively. The specific engineering content, investment allocation and construction sequence for each section still need to be determined through technical, economic and environmental feasibility studies. Once the studies are completed, the scope of works including channel dredging, maintenance, navigation marking and restoration of port facilities will be further clarified.

One of the engineering priorities is to improve navigability conditions during the dry season. Water level variations in the São Francisco River affect vessel draft, navigation safety and cargo loading capacity, and waterway maintenance and dredging will become key elements in restoring stable transport. The government hopes to improve year-round navigability through section-by-section improvement, reducing the impact on freight vessels having to adjust their sailing plans due to water level changes. The Bahia state government expects the first batch of works to begin in the second half of 2027; at present, the project is still in the preliminary study and implementation preparation stage.

To support the resumption of shipping, Codeba has organized 12 cargo vessels, 2 inland river tugs and 2 harbor tugs for maintenance preparation. Each cargo vessel has a carrying capacity of approximately 700 tons, and the existing fleet will provide initial capacity for restarting inland river transport. Codeba expects freight volume to reach 5 million tons in the first year after commercial shipping resumes, but this target still depends on waterway improvement, lock operations, restoration of port facilities and actual freight demand.

Potential cargoes include soybeans, corn, cottonseed, gypsum, limestone, animal feed, biofuels and sugar, while fresh fruit transport would require specialized vessels. Transport demand for agricultural and mineral resources along the waterway provides a cargo base for regional logistics hubs such as Juazeiro and Petrolina. By linking ports along the route and the land transport network through inland river transport, the relevant goods can be further transshipped to regional markets and export logistics hubs.

This management delegation also brings the Sobradinho Lock and 15 small public port facilities under unified management. Subsequent works will simultaneously involve river navigability conditions, lock operation support, port handling facilities and fleet operation preparation. Under the current arrangement, Codeba will first advance feasibility studies and preliminary maintenance work, then organize engineering construction according to the section-by-section implementation plan, gradually restoring the commercial freight capacity of the São Francisco River.