In Brazil, Espírito Santo State Seeks to Boost Its Industrial Sector with New Project

Parklog/ES is a project aimed at developing and strengthening the industrial and logistics potential of a region covering five municipalities

Ricardo Ferraço, Deputy Governor and Secretary of Economic Development of Espírito Santo

By: SiiLA News

10/25/2024

On September 17, 2024, the governor of Espírito Santo, Renato Casagrande, signed a decree establishing Parklog/ES, a project focused on developing and strengthening the industrial and logistics potential of a region covering five municipalities.

Parklog/ES will be a permanent integration and coordination program involving various assets, projects, and investments aimed at improving the industrial, economic, and social performance of port facilities and ventures in Aracruz, Colatina, João Neiva, Linhares, and Serra.

The project will be led by the state's Deputy Governor, Ricardo Ferraço. Despite their distance and few shared characteristics, these cities are strategically positioned within Espírito Santo.

The region will feature coastal access (Aracruz), proximity to highways linking the state to the Northeast (Linhares), and easy access to Minas Gerais (Colatina).

“Espírito Santo’s geographic position makes it a highly viable logistics alternative for Brazil. The area covered by the decree already has ports, airports, railroads, and federal and state highways. The first private Export Processing Zone (ZPE) in Brazil has been approved, alongside a new deep-water port for general cargo that should receive its first docking next year, as well as incentives from Sudene. The state government is investing in infrastructure, with new highways and upgrades to existing ones. The region is positioned as the main export hub for agribusiness from Brazil's Midwest and beyond,” said the Deputy Governor and Secretary of Economic Development of Espírito Santo, Ricardo Ferraço, in a statement from September.

Read more: Decrease in Vacancy Shows Brazil’s Industrial Properties Market Remains Hot

Espirito Santo map

Currently, Espírito Santo has 521 thousand m² of A+, A, and B class industrial properties, with a vacancy rate of 3.7%. The third quarter saw an addition of 40 thousand m² of new space and a net absorption of 42 thousand m².

Gabriel Checon, partner at Raizz Capital, asserts that the region can already be considered strategic for the industrial sector, with the state offering various tax incentives in addition to the creation of Parklog/ES.

“I believe Espírito Santo has already established itself as one of the most strategic logistics points in Brazil, especially in the Southeast. This is due to a combination of highly positive factors. The state has good tax incentive programs, such as Compete-ES and Invest-ES, which have attracted major companies and spurred development across various regions,” he said.

Checon highlighted the region’s port complex as a crucial factor, positioning the state in the national foreign trade ranking, with private ports further contributing to state development.

View from Those on the Ground

Gabriel Checon, partner at Raizz Capital

The project shows promise. Checon cites Viana as an example, emphasizing its quality assets and strategic location near the capital—a significant consumer hub.

“These factors make it competitive with other successful logistics hubs like Extrema in Minas Gerais. Additionally, Viana already hosts significant developments, such as the LOG CP logistics complexes (LOG Viana I and II), clear examples of how the city is attracting major investments and securing its place on Brazil's industrial properties map,” he said.

André Sgarbi, also a partner at Raizz Capital, notes that demand in the region is high, as evidenced by Market Analytics data showing reduced vacancy despite new inventory.

“Demand for industrial properties in Viana is high, and the Raizz Viana complex reflects this scenario. With an investment of R$170 million, the project will have three warehouses totaling 80,000 m² of gross leasable area. The first phase, to be completed this month, is already 100% leased. The second phase is scheduled to start by the end of the year, demonstrating confidence in the region’s growth potential and increasing demand,” he added.

Latam

Brazil

National

Industrial

Market Analytics

Investments

ABOUT SiiLA

Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.