Alcoa’s new vessels set to sail in Brazil

Alcoa Corporation’s new fleet of four ships is set to transport bauxite in Brazil between Juruti and São Luis, with investment in these vessels expected to strengthen the Company’s operations and reduce transportation costs.

The new fleet, scheduled to start operating in October 2024 between the Juruti mine and Alumar’s port in São Luis, will consist of two 80-ton cargo ships owned by Alcoa and two leased vessels.

“Our Juruti mine and Alumar refinery are very valuable assets in our portfolio,” President and CEO Bill Oplinger said. “The purchase and lease of these four vessels gives us more control of this critical part of our supply chain and provides a new opportunity to make Juruti and Alumar more competitive.”

The expected cost savings were discussed during the Company’s second quarter 2024 earnings call.

The new fleet has a total value of approximately US$180 million (R$1 billion), including Alcoa's capital investment of US$90 million for the owned ships and the lease of the other two vessels for US$10 million per year for 10 years. By in-sourcing the shipping of bauxite.

In addition to the cost savings, the new fleet brings a significant environmental benefit compared to the existing shipping methods, with the possibility of up to a 30% reduction in greenhouse gas (GHG) emissions due to improved fuel efficiency. And the fleet will be a job engine in the states of Pará and Maranhão, creating about 500 direct and indirect jobs.

“We will be tremendously proud to see these ships sail because we know that they’re good for Alcoa and good for our business,” said Mateus Tiraboschi, Global Vice President of Procurement and Transportation. “They’re 80-ton symbols of how we will think differently about advancing competitively in the countries where we operate.”

More information is available in the press release, in Portuguese, from Alcoa Brazil.