News / Hapag-Lloyd enters Brazilian cabotage market with Norcoast JV

Photo: Hapag-Lloyd

Hapag-Lloyd and Brazilian firm Norsul have formed 50:50 joint-venture company Norcoast to provide cabotage services to Brazilian shippers and forwarders.

Under Brazilian law, cabotage – the transport of domestic cargo between domestic ports – remains the preserve of Brazilian companies, and Hapag-Lloyd said the JV had been registered as a domestic operator.

“Norcoast has already been incorporated and the partnership between Hapag-Lloyd and Norsul was also approved by the Administrative Council for Economic Defense, Brazil’s national competition regulator,” it said.

“The request to operate as Brazilian shipping company was also approved by the directors of the Agência Nacional de Transportes Aquaviários, paving the way to enter the market and increasing choices for Brazilian customers.”

Brazil’s cabotage market is currently dominated by three carriers – Maersk-owned Alianca, MSC-owned Log-In Logistica and CMA CGM’s Mercosul subsidiary. Hapag-Lloyd said Norcoast would look to launch its first services this quarter.

“The Brazilian coastal transport sector is constantly growing and handled over 1.2m teu in 2022. Norcoast will offer integrated logistics as well as quick and efficient solutions for its customers – thereby taking advantage of the increasing demand in Brazil’s coastal shipping market,” said Andrés Kulka, senior MD of Hapag-Lloyd’s region Latin America.

“The creation of Norcoast is an important milestone while it combines the expertise of Hapag-Lloyd and Norsul. Norcoast will promote access, additional capacity, and inclusion of companies in the use of coastal navigation as a transportation mode whilst being present in the largest ports in Brazil,” explained Angelo Baroncini, CEO of Norsul.

Freight forwarding veteran Gustavo Paschoa has been appointed chief executive of Norcoast. He has been an executive director at Norsul for the past three years and previously held senior management positions covering the Brazilian market at Damco, Panalpina and Penske Logistics.