Sep 14, 2010
Low Water Level on Madeira River Impedes Barge Operations
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The extended dry season in Brazil is not only worrying farmers in central Brazil, it is also causing disruptions for the only barging operation in the Amazon Region. Low water levels on the Madeira Rives in the state of Amazonas has forced the Grupo Andre Maggi barging company to cut back on barging operations until the water levels improve.
The water level in the Madeira River usually drops at this time of the year, but the drop this year is the worst it has been since 2005 and it is the second lowest water level since records started 40 years ago. As a result, the company is sending fewer barges down the river and each of the barges is only partially loaded.
The barging company operates from the city of Porto Velho in the state of Rondonia to the Port of Itacoatiara on the Amazon River. Once the soybeans arrive at the Amazon River, they are transferred to ocean going vessels for export. The barges carry primarily soybeans, corn, and soybean meal.
The Maggi Group is expected to originate 4.5 million tons of soybeans in 2010/11 and 60% of those soybeans will move into export channels via their barging operation. The company stated that they have already exported 70% of their soybeans and the last 30% will be exported before the end of the year. They are expecting to resume operations sometime in October after the summer rainy season has begins.