The construction of Porto Sul, in Ilhéus, Brazil, has been authorized by the National Waterways Authority (Antaq). The project, which will require investment of $1.35 billion, forms part of a national plan aimed at reducing congestion in the ports of the south and south east.

The port will have two terminals, one privately owned and managed, while the other will include the Bahia state government in partnership with private investors. The former, to be know as TUP Bamin, will handle iron ore, and be built by Bahia Mineração, which already owns mines in Caetité.

The project will involve the construction of a shared causeway, linking stockpile areas in the port to loading piers to be built within the area sheltered by the breakwater.

The Ports Secretariat (SEP) estimates that Porto Sul will handle a combined 75 million tonnes a year of dry bulk and general cargo. Each of the terminals will be able to accommodate vessels of up to 260 metres in length, drawing

up to 18.3 metres of water. TUP Bamin will require

investment of around $987 million, while TUP Porto Sul will absorb $370 million, with both terminals to be built within the next five years.

The Porto Sul project is part of the national Production Outflow Logistics Plan, which also encompasses integration with the East-West railway project. According to SEP, the expectation is that the production of grain in the midwest of the country — primarily in the state of Mato Grosso — will have the option to make use of Porto Sul, using the north–south and east–west rail links, thereby cutting the number of trucks having to use the ports of south and southeast, thereby cutting transport costs.