August 22, 2008

Minas Gerais pig iron makers facing export hurdles

BNamericas cited Mr Afonso Paulino, communications director at regional union Sindifer as saying that pig iron producers in Brazil's Minas Gerais state are unable to export from the Cais de Paul dock in Espírito Santo state.

As per report, the situation has arisen after a contract with CVRD for loading equipment expired and also due to the lack of a new concession from Espírito Santo state port authority Codesa.

According to Mr Paulino “CVRD had rented the equipment out to Sindifer under a contract that recently expired. As a result, pig iron makers have been forced to look for an alternative and ship abroad products through Rio de Janeiro state.’

He added that Rio de Janeiro's export infrastructure is not capable of meeting demand from the pig iron producers in Minas Gerais. He said “I can not calculate the losses resulting from this situation at the moment.”

CVRD had a 40-year concession to operate the dock that expired in 2005. At that time, the company agreed to sign three emergency contracts to avoid a halt in pig iron exports.