Brazil Offers $1.3 Billion in Subsidies for Shipbuilding Sector

BY MERCHANT NAVY

Brazil’s commitment to revitalizing its offshore shipbuilding industry has led to the approval of $1.3 billion. The state-supported Merchant Marine Fund (MMF) to aid local shipyards in meeting new orders and other waterways infrastructure requirements. This funding will focus on the construction of Offshore Support Vessels (OSVs), as per Brazil’s national syndicate for shipyards Sinaval.

Wilson Sons Shipyard will receive the highest share of $853 million out of the allocated $930 million for new buildings and vessel repair projects. It is in Guarujá to support the construction of 10 Platform Supply Vessels (PSV) for CMN Offshore Brasil.

Detroit Brasil Shipyard will receive an additional $116 million to build two multipurpose PSVs. These vessels are to be constructed for Starnav Maritime Services, which is a sister company of the same yard.

Brazil Boosts Shipbuilding with $201M for Tugs and Fleet Renewal

Wilson Sons has planned to invest $34 million in the construction of three Azimuth Stern Drive (ASD) tugboats equipped with a FIFI-1 Fire Fighting System. Additionally, Marlin Servicos Ambientais has been granted $18 million to build 12 more tugboats. Major Brazilian yards have received approval from the MMF to use more than $183 million for the maintenance and upgrades of vessels.

During his presidential campaign nearly two years ago, Luiz Lula da Silva, the President of Brazil, committed to reviving the oil and gas industry. Also, restart shipbuilding in the country as a means of creating jobs.

Local shipbuilding companies are set to benefit from Petrobras. The state-owned oil giant plans to award more contracts to build oil service vessels and dismantle old oil platforms. As part of the fleet renewal program launched by Transpetro, Petrobras’ oil transportation company, last year. The company has ordered 25 new vessels. The company aims to build the majority of these vessels in Brazil.

The Directing Council of the Merchant Marine Fund (CDFMM) has substantially increased shipbuilding subsidies since 2020. The main goal of the funding has been to enhance the country’s OSV fleet.