Brazil's Cabotage Sector Welcomes Hapag-Lloyd and Norsul Partnership

20 Oct, 2023

Brazil's Cabotage Sector Welcomes Hapag-Lloyd and Norsul Partnership

In a collaborative venture named Norcoast, two major players in the shipping industry, Hapag-Lloyd and Norsul, are gearing up to offer container cabotage and feeder services at Brazilian ports in the first quarter of 2024. This strategic move is rooted in a 50-50 agreement, and Norcoast is poised to operate autonomously, capitalizing on the combined expertise and strengths of its parent companies.

Andrés Kulka, Senior Managing Director for the Latin America region at Hapag-Lloyd, underscored the significance of the Brazilian coastal transport sector, which has demonstrated consistent growth and handled over 1.2 million TEUs in 2022. Norcoast's objective is to provide integrated logistics solutions and expedient services, aligning with the rising demand within Brazil's coastal shipping market.

Angelo Baroncini, CEO of Norsul, emphasized that the establishment of Norcoast marks a crucial milestone by amalgamating the industry know-how of Hapag-Lloyd and Norsul. Norcoast is poised to enhance accessibility, expand capacity, and facilitate the participation of companies in coastal navigation as a viable mode of transportation. Additionally, it will establish a prominent presence in Brazil's largest ports.

Gustavo Paschoa, the CEO of Norcoast, will spearhead this new joint venture, bringing with him a wealth of experience in the Brazilian transport and logistics sector. His background includes executive roles at Norsul, Damco, DSV, and Penske Logistics.

It's noteworthy that the collaboration between Hapag-Lloyd and Norsul has received the stamp of approval from the Administrative Council for Economic Defense (CADE), Brazil's national antitrust authority. Furthermore, their application to operate as a Brazilian shipping business (EBN) has been authorized by the Board of Directors of the Agência Nacional de Transportes Aquaviários (ANTAQ). This regulatory green light paves the way for market entry, expanding the range of options available to Brazilian clients.