Posted on July 22, 2026
By Gabriel Malheiros
The board of Brazil’s Merchant Marine Fund has approved the R$6.59 billion Porto Sul private-use terminal project in Ilhéus, Bahia. The port will operate in conjunction with the East-West Integration Railway, known as Fiol, creating a new export corridor for minerals, grains and pulp.
At a meeting held on July 16, the board approved 15 projects eligible for a combined R$10.8 billion in new financing for port infrastructure and the shipbuilding industry.
The projects cover maritime and inland navigation and are spread across the states of Amazonas, Pará, Amapá, Tocantins, Bahia, Paraná, Rio Grande do Sul, Rio de Janeiro, São Paulo and Santa Catarina.
In Bahia, Porto Sul is being developed by mining company Bahia Mineração, or Bamin, and is linked to both the Pedra de Ferro iron ore project and Fiol.
Considered one of the largest port developments in Northeast Brazil, Porto Sul comprises two terminals whose authorization agreements were signed in 2014. The National Waterway Transportation Agency, Antaq, had granted the terminal authorizations in December 2013.
Rail connection to support grain and iron ore exports
According to Bahia’s state development agency, Desenbahia, construction of Porto Sul involves investments of R$5.6 billion to be carried out over 25 years.
The terminal is designed to handle several types of bulk cargo in different forms. It will provide an outlet for iron ore, grains and pulp produced in inland Bahia and Brazil’s Center-West region.
With a deep-water structure and planned drafts ranging from 15 to 18 meters, Porto Sul will be able to receive large vessels, expanding export options for producers using the corridor.
The terminal will connect with Fiol, a federal railway project planned to run 1,527 kilometers from Ilhéus to Figueirópolis, in Tocantins state. The line is included in the federal government’s latest Growth Acceleration Program, known as PAC 3.
Fiol is expected to connect with the Center-West Integration Railway, or Fico, and has estimated capital expenditure of R$28.5 billion.
Fiol 1, the section between Ilhéus and Caetité in Bahia, is 75% complete, while Fiol 2, connecting Caetité with Barreiras, is 70% complete, according to the federal government.
Work between Ilhéus and Caetité was suspended in April 2025 after the construction contract with Prumo Engenharia was wound down. The government is now overseeing the transfer of the concession from Bamin to Portuguese construction group Mota-Engil and negotiating a financial rebalancing of the contract.
Merchant Marine Fund approves further projects
At its 63rd regular meeting, the Merchant Marine Fund board also approved a Petrobras proposal to build five liquefied petroleum gas carriers.
Another approved project covers the construction of three 500-metric-ton patrol vessels, known as NPa500BR, led by state-owned naval project management company Emgepron. The vessels will be built for defense operations.
Other proposals include vessels for inland and offshore support services, ship maintenance and repair projects, and new port infrastructure.
Among them are 12 grain barges for Brazil’s Northern Arc logistics corridor, new vessels for crossings on the Araguaia River and the expansion of an agricultural bulk terminal at the Port of Paranaguá, in Paraná state.
Following approval by the board, project sponsors will have up to 450 days to finalize financing agreements with financial institutions. That deadline may be extended by a further 180 days, allowing as many as 630 days to complete the financing process.
