Port of Pecém Emerges as a Driving Force for Development in Northeast Brazil, Creating a Robust Logistics Hub

Though primarily an industrial zone, the Port handles over USD 1 trillion in exports
Located just 50 km from Fortaleza, Ceará, the complex plays a key role in the region's growtH

Raul Viana, Port Business Manager of Pecém Port

By: SiiLA News

10/10/2024

In Northeast Brazil, the Port of Pecém, located in Ceará, is emerging as one of the country’s key ports — ranking sixth in Brazil and second in the region. Nearly three decades of investment have transformed local infrastructure, enhancing the road network and fueling growth in industry, the economy, and the logistics sector.

According to IBGE Cidades, the State of Ceará has a gross revenue of R$ 46 billion. A portion of this revenue is reinvested into the region, with many of these investments directly linked to the development driven by the port.

Currently, 70% of the Port of Pecém is owned by the State of Ceará, while the remaining 30% is held by the Rotterdam Port Authority, based in South Holland, Netherlands. The complex is divided into three zones: the port itself, the industrial area, and the Export Processing Zone (ZPE in Portuguese).

The ZPE is a foreign trade free zone that, along with the industrial sector, is driving regional growth, explains Raul Viana, Port Business Manager at the Port of Pecém.

"The ZPE was established to attract and retain investments. Our primary success story is the steel mill, which was drawn by the tax incentives offered through the EPZ, benefiting companies located within its boundaries," says Viana.

Another advantage is that imported materials can benefit from ZPE tax incentives, offering companies a reduction of approximately 30% in taxes.

Real Estate Market Impacts and Demand Growth

Port of Pecém

The Port of Pecém is predominantly industrial, and Viana notes that it has been receiving significant investment for projects such as green hydrogen, with six pre-signed contracts that could generate more than USD 24 billion.

These investments are drawing companies to the area, which, in turn, attract other firms, creating a thriving industrial and logistics ecosystem.

“Suppliers to the established companies are also likely to be drawn to the region. These are businesses that may not yet be present but could establish commercial relationships with the new industries. The rapid growth of the area is already evident. We have logistics parks and storage facilities preparing to meet this rising demand," Viana explains.

Marcio Siqueira, Chief Operating Officer at Log Commercial Properties

One of the leading players in the state, Log Commercial Properties, currently owns three developments in Ceará, totaling 262,000 square meters. Marcio Siqueira, Chief Operating Officer at Log, points out that while the company doesn’t yet have an exclusive operation with the Port of Pecém, it’s already feeling the effects of the region's expansion.

“While we don’t have an exclusive operation within the Port, it’s likely that cargo from there passes through our facilities, given its logistical significance. Additionally, we are near Fortaleza, where we have almost 400,000 square meters of gross leasable area (GLA), positioning Ceará as one of our strongest regions in Brazil,” Siqueira explains.

SiiLA’s monitoring of Ceará shows that the state currently has 428,000 square meters of industrial warehouse, considering Classes A+, A and B assets, with a vacancy rate of only 2%. The largest occupiers are in the Consumer Goods sector (41%), followed by Transportation and Logistics (34.4%).

Infrastructure and Regional Impact

The Port of Pecém connects to three federal highways — BR-222, BR-020, and BR-116 — and several state roads, such as CE-085, which links the port to Fortaleza, and CE-156, which cuts across the state from north to south.

The port’s exports total more than one trillion dollars, with an annual average of 18 million tons of commodities, bulk goods, fuels, and other industrial products shipped out. According to Viana, part of the workforce comes from Fortaleza, and investments in the port have a direct impact on the region’s economy.

Siqueira agrees, noting that the port's expansion boosts local consumption, which influences LOG's presence in the region, as the company focuses on large consumer hubs.

"The port's growth will undoubtedly bring more people to work in the region, driving increased consumption. That's where LOG comes in, accommodating new players. This expansion will certainly increase the demand for logistics warehouses," he says.

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