Brazil’s largest private freight railroad operator Rumo has signed an agreement with global supply chain and logistics company DP World to build a new port terminal for grains, oilseeds and fertiliser at the Port of Santos in the south of the country, Globe Newswire reported.
Brazil produces more than 155M tonnes/year of soyabeans, making it the leading crop in the country, and is the world’s largest exporter of the oilseed. The Port of Santos currently handles around 30% of the country’s total soyabean exports, followed by the ports of Paranagua and Rio Grande.
The new project would increase Santos’ handling capacity by up to 12.5M tonnes/year, comprising 9M tonnes of grains and 3.5M tonnes of fertilisers, the 26 March report said.
Rumo, a subsidiary of Cosan, had committed an estimated investment of US$500M (BRL$2.5bn) towards the project, Globe Newswire wrote.
Subject to regulatory approval, the project would be built at DP World’s private use terminal on the port’s left bank and was expected to take 30 months to construct.
“Combined with the State Railway of Mato Grosso, which we are building to expand rail reach in the Midwest, the new terminal reinforces the prominence of the Port of Santos as the main logistics corridor for agriculture,” Rumo CEO Pedro Palma was quoted as saying.
As part of the initiative, DP World would oversee port operations, including cargo movement, the report said.
“This partnership signifies an expansion of our operational capabilities… by providing this infrastructure, we will expand our multimodality capacity,” DP World Brazil CEO Fabio Siccherino said.
The agreement between the two companies would be in place for an initial operating period of 30 years, with an option for extension subject to DP World approval, the report said.
Rumo provides transportation for agricultural commodities, fuels, fertilisers, corn, wheat, rice, soyabeans, sugar and industrialised products. It manages approximately 14,000km of railways in the states of Paraná, Santa Catarina, Rio Grande do Sul, São Paulo, Mato Grosso do Sul, Mato Grosso, Minas Gerais, Goiás and Tocantins. The company has 1,400 locomotives and 35,000 railway wagons and operates nine trans-shipment terminals and six port terminals in the main Brazilian ports.
Active in 74 countries, DP World’s business divisions comprise Ports and Terminals, Marine Services, Logistics and Technology.
