German shipping company Hapag-Lloyd and Brazilian shipping and waterway logistics business Norsul have formed a new joint venture, “Norcoast”.
The new JV, based on a 50-50 agreement, plans to begin supplying container cabotage and feeder services at Brazilian ports in the first quarter of 2024. Norcoast will operate independently in the area, leveraging the strengths of both parent companies.
“The Brazilian coastal transport sector is constantly growing and handled over 1.2 million TEUs 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,” stated Andrés Kulka, Hapag-Lloyd’s senior managing director in Latin America.
Gustavo Paschoa, CEO of Norcoast, will lead the new joint venture, taking with him notable industry experience in the Brazilian transport and logistics sector, including past top executive roles at Norsul, Damco, DSV, and Penske Logistics.
The cooperation between Hapag-Lloyd and Norsul has previously been approved by the Administrative Council for Economic Defense (CADE), Brazil’s national competition regulator. The application to operate as a Brazilian shipping company (EBN) was also authorized by the Board of Directors of the Agência Nacional de Transportes Aquaviários (ANTAQ).
“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,” said Angelo Baroncini, CEO of Norsul.
