To revitalize coastal shipping and modernize Brazil’s maritime sector, the federal government has implemented a series of measures under the Coastal Shipping Transport Incentive Program (BR do Mar) to attract investment, reduce logistics costs, and promote the sustainable use of the country’s extensive coastline and navigable waterways. Established by Law No. 14.301/2022 and recently regulated by Decree No. 12.555/2025, the program marks a new phase of development for the Brazilian naval industry.

The new decree brings significant progress to the maritime sector, particularly in terms of regulatory modernization and the strengthening of legal certainty.  Key elements include detailed rules for bareboat chartering of foreign vessels, flag suspension, and the possibility of registering under the Brazilian Special Registry (REB). This tax regime grants exemptions to chartered vessels flying the Brazilian flag.

One of the main innovations is the flexibility for foreign companies to enter the coastal shipping market. These companies can now operate in Brazil without needing to initially invest in their own fleet by partnering with Brazilian Shipping Companies (EBNs).  This shift lowers entry barriers and enhances competition in the sector. At the same time, vessels operating under these partnerships will be subject to Brazilian regulations, which allows them to benefit from REB tax incentives—as long as they meet the country's technical and legal requirements.

Another notable development is the direct incentive to domestic shipbuilding. The decree reaffirms the priority allocation of Merchant Marine Fund (FMM) resources to investments in Brazilian shipyards, creating a more attractive environment for international investors interested in financing or developing the local production chain.

“This is the best time to invest in Brazilian cabotage. The country has a natural inclination towards maritime and river transport, with nearly 8,000 km of coastline and approximately 40,000 km of potentially navigable waterways. The oil and gas sector is undergoing a robust recovery, driven by new auctions and the reactivation of Petrobras. With the new regulations, Brazil lowers operational barriers, expands the use of foreign vessels, and provides regulatory certainty for investors,” says Bernardo Mendes Vianna, partner in the Maritime Law practice at Vieira Rezende.

Sustainability is also a key aspect of the decree.  Preference will be given to more modern, less polluting vessels and those offering appropriate working conditions, in alignment with global market requirements.  Although specific rules for sustainable vessels are still under development, Brazil has signaled a firm commitment to the ESG agenda and the UN Sustainable Development Goals.

In addition to technical improvements, the decree clearly defines institutional responsibilities between the National Waterway Transportation Agency (ANTAQ), the Ministry of Ports and Airports (MPor), and the Brazilian Navy. This delineation reinforces legal certainty, a key factor for foreign investors. “Brazil is not a flag of convenience. We have serious regulations and mature institutions. Our political, legal, and regulatory framework ensures stability, so that national and international investors can structure their projects in the sector with greater predictability,” adds Mendes Vianna.

‍

Key Investment Opportunities

• Chartering of foreign vessels with full or partial tax exemption through the Brazilian Special Registry (REB);
• Partnerships with Brazilian shipping companies, reducing the initial capital required for market entry;
• Investments in sustainable vessels, which are prioritized for operations within the country;
• Participation in the development of the national shipbuilding industry, with access to funding from the Merchant Marine Fund;
• Capitalizing on the recovery of the oil and gas supply chain (maritime and offshore support).

‍

Authors:

Bernardo Mendes Vianna | Partner

Bernardo Santana | Associate