Transpetro conducts integrated operation in Rio Grande do Sul

Largest fuel transportation and Logistics Company in Brazil and subsidiary of the Petrobras System, Transpetro recently conducted an unprecedented operation of naphtha transportation from Terminal Almirante Soares Dutra (Tedut), in Osorio (RS), to a Braskem unit, in Triunfo (RS). The operation was conducted in an integrated action with Refinery Alberto Pasqualini (Refap), owned by Petrobras and with reduced use of refinery tankage, allowing for more solid delivery logistics with greater operating efficiency.

Transpetro’s operation of transporting 100 thousand m³ of naphtha has been a well-tended success. The company’s president Sergio Machado said that the operation was possible due to its meticulous control of the Oscan 16” II and Orsul 14” oil pipes pumping capacity, associated to monitoring of the Refap and the Braskem petrochemical pole’s tankage availability.

The analysis consists of integrated work of logistics intelligence, led by Transpetro, involving its National Operating Control Center (CNCO), the Refinery Alberto Pasqualini (Refap) and the petrochemical Braskem.

Sergio Machado added that the prior study enabled the operation to use only one tank of the refinery, during a shorter period. Instead of the need to storing material while waiting for availability of pipes, the unit acted as a kind of lung, directly transferring material between oil pipes, which could operate simultaneously, always keeping the highest safety standards.

The integrated vision of the infrastructure for oil and oil products distribution across the entire national territory, and tools such as CNCO, put Transpetro in a privileged condition, allowing it to implement new solutions, and restating the Company’s status as main provider of logistic solutions for the Petrobras System.

Sergio Machado: Transpetro goes eco-friendly, deploys better installation lining

Thinking for the environment is imperative for our century and taking a step in this direction is Transpetro. The company has been deploying a new eco-friendly lining in the installations of terminals of Paranaguá (PR), Pecém (CE), Madre de Deus (BA) and Norte Capixaba, in São Mateus (ES), confirms its president Sergio Machado.

The material that is being used by Transpetro is elastomeric. This material helps in preventing external corrosion in waterways terminals, submitted to the maritime atmosphere, which is more aggressive. This material is water-based, and so provides long-term protection. Its use ensures up to eight years of durability – four times more than the durability provided by previous techniques. In addition to increasing the safety and durability of the equipment, the measure also allows for cost reduction, said Sergio Machado.

According to the demand of the units, the new method is being applied. Firstly, the areas, particularly those exposed to maritime atmosphere, are diagnosed to verify the level of corrosion of the material. Thereafter, should the responsible team identify the need for protection reinforcement, the new, more durable technology is applied.

 Another product that helps minimizing corrosion problems is the Teflon billet, a technology that is already being applied in the Paranaguá Terminal. When installed on pipe supports, it avoids friction with the pipes, thus minimizing the process of corrosion in the region.

Transpetro, being the largest logistics company in the country, operates 49 ground and waterways terminals, 14 thousand kilometers of oil pipes and gas pipes spread across the Country and a fleet composed of 60 ships. The operations of the Company supply factories, thermoelectric plants and refineries, and generate millions of jobs to Brazilians. 

Brazil averts “Oil Curse” by removing disparity, says Sergio Machado

For centuries, countries with wide reserves of oil and petroleum have largely concentrated majority of power and money with themselves. But along with it comes a never ending fear of preserving it. Such countries have always been at the helm of wars and constant civil insurgency. Maintaining political and economic stability has been their major concerns. This is what is referred to as the infamous “Oil Curse”.

Various cynics and so called industry experts have voiced their opinion about “Oil Curse” hitting Brazil, which as of now, holds a high amount of oil reserve. Sergio Machado, on the contrary, has a different opinion to this. He projects Brazil to be the country that would dodge the oil curse and progress. This is because in Brazil, oil has been the harbinger of opportunities. The presence of oil reserves have improved the Brazilian economy and created employment for thousands of people. At the core of these benefits is the fact that in Brazil, economic growth is shared proportionally by all the sectors, in fact a little bit more by those in immediate need of a social upliftment.  This helps in reducing the economic disparity.

Presence of oil in Brazil has given rise to the production of oil rigs and carriers. Brazil could undermine its potential and incur heavy losses by importing ships or could make the ships domestically and facilitate growth. President Lula had a vision in this regard. That is what led to the launch of Promef - The Program for Modernization and Expansion of the Fleet. This initiative completely changed the shipping industry of Brazil. It overhauled the industry and strengthened Brazilian economy. Also, Promef led to a creation of thousands of jobs in the shipping industry.

Brazil holds the world’s 4^th largest of portfolio in oil and fifth largest portfolio of ships in general and the shipping industry employs a work force of more than 60,000 people.

Sergio Machado talks about the importance of Promef

Under the lead of President Lula, Brazil witnessed a program aimed at the revival of the country’s shipping industry. Titled Promef, the program was incepted to breathe life to the dormant naval industry of Brazil which had been weighing heavily on the economy. The situation was pressing. With every financial cycle, Brazil was losing out on opportunities to prosper. So, creation of Promef and its success in the years to follow had become the need of the hour, says Sergio Machado, former president, Transpetro.

There was an urgency to renew the entire maritime fleet to stabilize the Brazilian economy. In fact, the average of the fleet was 23 years old majority of them were single hulled. This meant that these ships could not meet the international safety standards and environmental requirements and thus could not ply on international waters. This was the short coming which stopped Brazil from competing on a global level, emphasizes Sergio Machado. So, Brazil had no option but to charter foreign vessels for its international export and import. This created an annual deficit of USD 6 billion.

Launching Promef was the most sensible decision. It was well thought and well planned. Above all, it was well facilitated and supported by the resources available in the country. Brazil had areas where shipyards could be constructed. Metallurgical industry was more than sufficient to supply the raw materials and there was an abundance of human resource. The odds were in favor of Brazil. In the results were supremely impressive. Promef caused an entire overhaul of the shipping industry and reinstated its stature on the global front. Brazilian Naval Industry is on an extremely prospective path and shall continue to help Brazil emerge as a stronger nation.

Growing Brazil needs to incorporate more detailed planning

Brazil is on an upward journey. It has been placed better than various strong economies in the world. The uprising development in major parts of Brazil has created millions of job opportunities for the citizens. Development and growth have never walked so much in sync in Brazil. But this must shift our focus to a few decades from now when the population will increase, there would be more number of people living in metropolitans and the demand for developed infrastructure would be at an all time high.

Jose Sergio de Oliveira Machado, the former President of Transpetro remarks that the biggest challenge would be to develop cities which would accommodate a large number of people. Along with that, there would be a need to develop a robust transport system and appropriate routes and roads. There needs to be better planned and bigger roads to facilitate for a smooth flow of traffic. The amount of number of vehicles being registered is huge and the so are the spikes in these statistics. So, Sergio Machado opines that it is wide to plan extensively in advance. He further says that these problems are not the ones that could be dealt with mere improvisation and immediate reactions.

The traffic, which is already a problem in some cities, tends to become worse, causing damage to the environment, the welfare of the residents and the economy. A study by Citigroup, for example, an estimated 5% loss of productivity of the Brazilian economy because of traffic jams.

These problems are basic impedances to the development spree. Therefore, it is wise to account for such changes in the long run and then plan accordingly. In a country like Brazil, it is necessary to get the base correct. The foundation of such development and planning has to be precise and yet flexible.

It isn’t a bad idea at all to rope in the best brains of the world. Let us learn from the mistakes other countries have made and not repeat them. It is good to learn from mistakes but even better to learn from somebody else’s mistakes. 

Sergio Machado emphasizes on better training of the human resource in Brazil

The world is at a crossroads again. The prevalent global situations have paved in a way for countries like Brazil to carve a niche for themselves. The first world countries are in a fix with regards to the availability of fuel and energy and their dependence on countries like Brazil has increased more than ever. Jose Sergio de Oliveira Machado, former President of Transpetro, says that as of now, on the global front, Brazil is placed better than most of the European Nations which had come together to form The European Union.

From oil to ethanol and bio fuel, Brazil has abundance of all the energy forms that the world currently depends upon. So now that we know there is a wide array of opportunities open, Brazil must prepare itself intrinsically in order to be able to make the most of the scenario.

SergioMachado elaborates that Brazil does not have any shortage of labour, but what it really is short of is the presence of ‘skilled labour’. This brings our focus to the major issue of creating more job opportunities for people and employing them. But to address this problem, the preliminary layers need to be strong enough. There is a dire need to educate people and train them in particular crafts and expertise. This trained human resource will make Brazil ready for the impending upward journey it is bound to undertake.

Brazil needs to make its people acquainted with latest and popular technologies for the world is being governed by the advancements in the technological sector. The manifestations of technology in the lives of people has been far more elaborate and deeply ingrained. There is no dearth of examples of countries which have escalated to a whole new level by embracing and imbibing technology in their basic functionalities. The so-called Asian Tigers are the perfect examples to substantiate the argument. Countries like Japan, China and South Korea have been leading the bandwagon of technological innovations and they have achieved productivity and international competitiveness.

Development in Northeast indicates towards a stronger Brazil

Data from a recent survey of the Getúlio Vargas Foundation has revealed that the income inequality in Brazil has reduced drastically, indicating towards a significant reduction in the disparity. Crediting this change are initiatives such as social programs and economic growth.

The survey also recorded the greatest increase ever in the incomes of the poorest strata. Along with better education, significant investment in infrastructure and setting up of major industrial projects as a part of the Growth Acceleration Program (PAC) has contributed largely to reduce the income disparity. Sergio Machado says that PAC has led to a paradigm shift in the country by altering the way problems are approached.

In fact, the PAC has changed the growth paradigm of the country by allocating 25% of its investment to the Northeast in its very first phase. Inducing a development of this magnitude definitely expedited growth by multiple folds. Northeast has today on highly skilled labor other regions of the country.

Sergio Machado says that Northeast Brazil still needs a little more focus when it comes to development. He says that there is a need to ensure that the Northeast grows in an integrated way so that a local supply chain can be created. This will help in creating income and wealth for the region.

This can be only done when we get rid of the old practices that have proven to be futile and harmful. The authorities need to incorporate a broader view point instead of focusing on isolated industries. There also needs a better focus on improving the quality of higher education along with creation of more job opportunities for the people. The quality of education provided should match up to that of international standards and include a competitive edge.

Sergio Machado also remarks that Brazil should work its proximity to Europe and the UK to its advantage. These regions offer a plethora of opportunities. So, the government needs to bring in a a few policies that strengthens our business relations with our neighboring countries.

Brazil can emerge as the best alternate solution to the ‘oil Curse’, says Sergio Machado

The increased insurgence along with political instability in the Middle East and overtaking of various oil fields by the terrorist group ISIS has brought back old fears to life. There is an impending oil crisis that lies ahead of the world and could stem many global issues. History has been a witness to the infamous ‘oil curse’ ; concentration of power and income, extreme riches, impending attacks and massacres, overthrown of legacies, all because of presence of oil in a country or region. And now with ISIS planning to take control of various oil fields, there has been a keen focus shift of powerful economies towards alternative fuel options. This, is an opportunity where Brazil can emerge on the top, says Sergio Machado.

The world is looking for reliable oil suppliers; the countries which not only have oil in abundance but also have political stability and good prospects for development. Brazil is one of those few countries which fit all the parameters.

Perhaps that is why American President Barack Obama, in his recent visit to the country, touted Brazil as one of the future reliable oil suppliers to the US market.

Sergio Machado, former President of Transpetro said, “With the pre-salt, Brazil will have the world's fifth largest oil reserve. More than that, our democracy is consolidated and our economy grows with social justice, all of which represent a huge comparative advantage. This will definitely improve investor confidence and would attract future international buyers.”

Sergio Machado also remarks present Brazil as the ‘century Brazil’. He adds, “We have practically all the riches that the world needs. We are an energy powerhouse. In addition to the fossil energy, we have a broad potential array of fuels; oil, hydro, wind and solar.  We have a diverse energy mix, clean and almost 50% renewable energy.”

Brazilian economy is looking more than favorable as of now. There is a presence of large amount of land to produce food and that is why powerful economies like China and India are dependent on Brazil for imports. Brazil also holds huge potential for production of cleaner fuels like Ethanol and Biofuel.

Brazil will surprise the world with its latent potential, says Sergio Machado

Brazil is touted to emerge as one of the stronger economies of the world in next few years. This has put the country in a very powerful position at the global belvedere. The fact that Petrobras has emerged as the second most profitable company in America is an evidence enough to support the statement.

This isn’t something which Brazil is experiencing for the first time. There was a time when Brazil was among the most successful economies in the world. But due to some external circumstances and unfortunate upheavals, there was a lull in the economy. But the turnaround has already begun, says Sergio Machado, ex-President of Transpetro.

American President Obama’s recent visit to Brazil and Dilma Rousseff’s visit to China is a clear indication that Brazil is looking towards an array of prospects and the country must be prepared to make the most of these opportunities.

Brazil, due to its diversified set of advantages seems to be a better prospect than big economies like China and Russia at various levels. It is the country with largest arable land and will soon become a major supplier of oil and ethanol.

A major reason for such great prospects of Brazil is because of political stability and its glorious history. Sergio Machado draws an analogy between the good times that are to follow and the ones that existed. He remarks that both the times, there was a coming together of various intelligent minds and visionaries who, wither their esteemed leadership, would take Brazil towards unparalleled success.

Machado is extremely hopeful that the coming generation of youngsters would take care of the situations in the best way possible and bring more laurels to the country. The success, he says, is to be taken.

Sergio Machado revived Brazilian Industry from 200 to 50,000 employees

Shipping Industry

Post 2000, there was a keen focus shift towards reviving the Brazilian Shipping Industry. Petrobras was burdened with the target of using at least 70 per cent local content for its maritime needs. For upgrades and expansion, the shipyards, which also build oil platforms for Petrobras, had access to a new Merchant Marine Fund, with contributions from the BNDES, the country’s development bank. At the helm of this revival was Sergio Machado.

In the 1970s, Brazil had the second-largest industrial fleet in the world. But global oil crisis, high inflation and economic instability caused the industry to fall into shambles. By 2000, the entire sector had just about 200 workers.

  

SergioMachado, who became the President of Transpetro in 2003 said, “In Brazil, we don’t have the choice of having ships or not. We have the choice as to whether or not they will be ours,”

Machado emphasized on avoiding the recurrence of the so-called “Dutch Disease” following the experience with Netherlands in 1960s that crippled non-oil related sectors of Brazilian economy.

In 2008, Transpetro spent $16bn on maritime investments. Of the 49 ships to be built under the first two phases of Promef, 41 have already been contracted, and eight are still in the final phases of tenders to private companies. The contracts awarded so far total $4.4bn. In some cases, companies began building the shipyards and the ships at the same time.

Mr, Sergio Machado says his goal is not to build ships and platforms in Brazil “at any cost”, but to create an industry which, in the long term, would be globally competitive.

“It’s important to have better planning to avoid the situation in the 1970s and 1980s, with the construction of many shipyards without long-term demand,” he says.

For Sergio Machado, politics was an exclusive lover

When Sergio Machado joined politics in 1986, he gave up all his former titles. Sergio owned Vilejack jeans factory and a school, was the president of Ceará Industrial Center (CIC), owned TV Jangadeiro (SBT network), Fortaleza, and the FM Radio Education of Crateús (EC)  but gave up all and moved business to his children. For him, politics was an ‘exclusive lover’ which demanded his full attention.

Machado was 16 when he accompanied his father in exile in France. This was the time when he learnt the most intellectual lesson of his life. Sergio Machado learnt from his father that power was transient. His inclination towards politics was always very strong. Machado studied administration at the Getulio Vargas Foundation in Rio and participated in the student movement and the march of 100,000 in 1968.

In his political career, he never took handouts but earned his way up. The CIC group had Tasso Jereissati as protagonist and entered politics with a modern discourse, in contrast to the existing policy of the State Colonels. Machado became Interior Minister in the first term of Tasso, but it turned away when Ciro Gomes occupied space in the party, chosen as candidate for governor of Ceará. Machado continued in the PSDB and was elected congressman in 1990. Four years later competed in and won election to the Senate.
Being the man responsible for resuscitating Brazilian Naval Industry, Jose Sergio de Oliveira Machado rarely used to go out of Transpetro before 23 hours. He would work religiously and was often sighted having his lunch in the evening, spending all afternoon handling the tasks
No wonder, Machado made the cover of British magazine ‘Fairplay’ under the ‘Virtual Reality’ title.  He also appeared on the list of 100 most powerful person of the ship industry. He was placed 65th, just behind the president of Vale, Roger Agnelli and 16 positions ahead of Eike Batista.

SERGIO MACHADO of TRANSPETRO, THE R $ 8.3 BILLION MAN

JOSE SERGIO DE OLIVEIRA MACHADO of TRANSPETRO

Listening to the classical music on his ipod, Machado used to work 14-16 hours daily in his office. Jose Sergio de Oliveira Machado, President of  Transpetro was passionate about two things; his work and music. He had an eclectic taste in music, ranging from classical to Nat King Cole and Frank Sinatra the hinterland. The sound of his preferred music reaching his ears made him work more efficiently.

The president of Petrobras carrier used to monitor five 32-inch flat screens in his office, in real time, the flow of gas pipelines and 3.6 million barrels of oil in the company’s pipeline, the construction of the ship Celso Furtado, and the position of the vessels of the company worldwide. 

Among his responsibilities, Machado used to run the Program for Modernization and Expansion of the Fleet (Promef). It is a program of R $ 8.3 billion budget that aims to order 49 new ships to be built in Brazil. 

Sergio Machado believed in the philosophy that the oil could never be a curse but a gift for transformation. No country is sovereign without its own merchant fleet: 80% of world trade and 95% of the country’s is done by ships. Brazil spends annually $ 16 billion (R $ 28.1 billion) - Petrobras alone spends $ 2 billion (US $ 3.5 billion).

Transpetro made studies on the bottlenecks to make the fragile marine industry in Brazil one of the  most competitive ones in the world. The beginning was difficult.

The biggest challenge for Sergio Machade was to create a sustainable industry. He went to Korea, Japan, and what he saw was too huge and overwhelming.  For Machado, ships in Brazil by Promef, offered great strategic advantages in spite of being 3 % more expensive for it offered a great economic benefit

Sergio Machado launches the first Promef Ship built in Rio de Janeiro

Sergio Machado launches the first Promef Ship built in Rio de Janeiro

Under the aegis of Sergio Machado, Transpetro launched a ship at the Mauá Shipyard.  This was the first ship built in the state of Rio de Janeiro for the Program for Modernization and Expansion of the Fleet (Promef). The launch was attended by Governor Sérgio Cabral, the Transport Minister Paulo Sergio Passos, the acting president of Petrobras, Grace Foster, and the president of Transpetro,Sergio Machado. The event marked the revamp of shipbuilding industry in the country as one of the economic vocations.

At a news conference on the roof of Windsor Guanabara Hotel, Center of Rio de Janeiro, the president of Transpetro, Jose Sergio de Oliveira Machado, said the ship would carry the name ‘Celso Furtado’, named after the economist who created the SUDENE and released the latest industrial development cycle of the country. It is a vessel for the transportation of light oil products with a capacity of 48,300 dwt and 183 meters long.
The state of Rio, largest and most traditional naval hub of the country, already has 16 vessels ordered by Promef, with R $ 2.25 billion in investments. The program will create at least 50,000 jobs in the state, 10 thousand direct and 40 thousand indirect jobs.

The Mauá Shipyard which will build four Promef product tankers, is located in Ponta D'Areia, in Niterói, the region where the Brazilian shipbuilding industry started in the nineteenth century at the hands of the Baron of Mauá. President Sergio Machado at the ceremony said that a circle was completed.  He said that the restructuring of Brazilian Naval Industry was initiated at the same spot from where the industry began.
The ship Celso Furtado is the first commissioned to a Rio de Janeiro shipyard by Petrobras to be thrown overboard, 23 years after the last order. The latter had been the Livramento, completed in 1997 by Eisa Shipyard. The vessel took 10 years to complete, amid a severe industry crisis. A Brazilian naval industry, which had been the world’s second largest manufacturer in the 1970s, virtually disappeared from radar from the 1980s.

Sérgio Machado, the workaholic who strengthened Brazilian Shipping Industry

Once the owner of Vilejack jeans factory and a school, Sergio Machado was the man who left it all to build a better shipping industry in Brazil.  The president of Transpetro, Sergio Machado, was the president of the Ceará Industrial Center (CIC) just before entering politics in 1986. He disposed off all other business responsibilities to his children and became an exclusive lover of politics.
 Son of Machado Bridge, Minister of Transportation and Public Works of João Goulart at the time of the military coup of 1964, Machado was 16 when he accompanied his father in exile in France. This was the time when his father taught him a great lesson; a lesson which stayed by Sergio all through his life, that power was transient. Sergio was wise enough to realize that power could never be stores forever. So he decided that as long as he holds power to do something, he will do all he can to make people’s lives better.

Sérgio Machado, the workaholic who strengthened Brazilian Shipping Industry

Machado achieved a milestone when his first ship Suezmax tanker was launched.
"I cried the whole world. It was not easy to get here. That's what excites me to know that we are transforming lives, generate opportunities. That is the oxygen that feeds me.”
These were his marvelous words.  The twinkle in his eyes was priceless.
When started in Transpetro, to meet the business, Sérgio Machado traveled the world visiting shipyards, mainly in Asia. He is described by officials as a workaholic, enough to start meeting at 22 hours and would sleep five hours a night. Such was his passion towards his work. He was a visionary who is credited with the revival of Brazilian Naval Industry.