By Brazil Stock Guide – Brazil’s Ministry of Ports and Airports held a technical meeting with the Ministry of Transport and major industry associations to examine the feasibility of tapping the Merchant Marine Fund (FMM) to finance rail infrastructure connected directly to port operations. The session outlined the foundations of a new credit program and assessed how part of the fund’s R$ 24 billion cash balance could help unlock access works, reduce logistics costs and raise operational efficiency across export corridors.
Ports and Airports Minister Silvio Costa Filho said the government aims to unveil a national credit program in January focused on strategic railways serving port operations. He argued that tighter integration between tracks and terminals “expands capacity, reduces logistics costs and strengthens the entire port sector,” particularly in heavy-duty export chains.
National Railway Secretary Leonardo Ribeiro stressed that railways underpin Brazil’s export performance: 95% of iron-ore shipments and 40% of agricultural bulk depart for ports via rail. He noted that aligning these two logistics systems is critical for the success of the National Railway Policy and for the government’s upcoming auction pipeline.
Integrated rail-port map
Participants also advanced discussions on a unified map correlating existing railways, ongoing construction and planned expansions with port assets. The tool is meant to guide investment priorities based on technical criteria. Officials additionally explored ways to increase private-bank participation in project financing to accelerate execution and widen credit availability.
The ministry reiterated that any move to expand the FMM’s mandate to include railway projects requires technical due diligence, approval from the Merchant Marine Fund’s Steering Council and a broader governance decision at the federal level. Industry groups — including ANTF, MoveInfra, ABTP and ATP — contributed diagnostic insights on bottlenecks and potential efficiency gains.
Created in 1958, the Merchant Marine Fund is Brazil’s primary long-term financing instrument for shipbuilding, coastal shipping and port-infrastructure projects. The fund is capitalized mainly through the AFRMM freight surcharge and operates via subsidized credit lines executed by public banks, notably BNDES.
While its mandate has traditionally been restricted to maritime and port development, the FMM has accumulated a sizable cash position in recent years, prompting discussions within the federal government about whether — and under what governance thresholds — its scope could be broadened to include rail segments that directly enhance port competitiveness.
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