São Paulo – Brazil’s largest private freight railroad operator Rumo and UAE port through state-run DP World will build a new port terminal for grains and fertilizers at the Port of Santos, Brazil. Rumo has committed an estimated investment of USD 500 million (BRL 2.5 billion) towards the project, whose construction is expected to span 30 months, pending the fulfillment of precedent conditions inherent to this type of transaction. (Pictured, DP World terminal at Port of Santos.)
The project will be installed in the Arab company’s terminal on the port’s left bank. The venture aims to enhance the port’s handling capacity by up to 12.5 million tons per year – comprising 9 million tons of grains and 3.5 million tons of fertilizers. The agreement provides for an initial operating period of 30 years, with an option for extension.
Pedro Palma, CEO of Rumo, was quoted as saying in a statement that the railway mode is structurally the most effective, secure, competitive, and low-carbon logistics solution for moving large volumes of commodities for export, as well as for imported cargo. “Combined with the State Railway of Mato Grosso, which we are building to expand rail reach in the Center-West, the new terminal reinforces the prominence of the Port of Santos as the main logistics corridor for agriculture, and consequently a lever of competitiveness for the country’s economy,” Palma said.
Fabio Siccherino, CEO of DP World Brazil, said the partnership is strategic to expand the company’s “multimodality” capacity by managing a diverse range of cargo, including containers, cellulose, grains, and fertilizers. “Our role in this project underlines our dedication to supporting Brazil’s agribusiness, optimizing railway transport and meeting export and import demands efficiently,” Siccherino was quoted as saying.
Translated by Guilherme Miranda
