Thursday 25 Apr 2024 Abu Dhabi UAE
Prayer Timing
Today's Edition
Today's Edition
Business

DP World & Rumo to build new grain, fertiliser terminal at Brazil’s santos

DP World & Rumo to build new grain and fertilizer terminal at Brazil’s santos
2 Apr 2024 16:42

DUBAI (ALETIHAD)

DP World partnered with Brazilian railway operator Rumo to build a new terminal at the Port of Santos.

The terminal will handle 12.5 million tonnes a year of grains and fertilisers, positioning the port as Brazil’s primary trade gateway and a key hub for South America.

Estimates by Rumo predict that the total investment for the construction of this state-of-the-art facility at BRL 2.5 billion (US$500 million), which will be financed through a combination of Rumo's resources, loans, and potential strategic partnerships.

This is in addition to recent investments in DP World container handling facilities increasing capacity from 1.2 million TEUs to 1.4 million TEUs, while expanding the size of the quay from 1,100 metres to 1,300 metres.

Upon completion, the new terminal will handle nine million tonnes of grains and 3.5 million tonnes of fertilisers a year.

Notably, construction is expected to take 30 months and all other services including container handling at Santos will continue meanwhile, with no impact to container handling operations.

Under the 30-year agreement, DP World will provide the terminal area located on the left bank of Brazil’s Port of Santos to Rumo and assume responsibility for operations and port services.

The port is one of the largest and most modern private multi-purpose port terminals in the country.

The collaboration solidifies DP World's position as the country's leading multipurpose port operator, capable of simultaneously handling containers, cellulose, grains and fertilisers.

The new terminal marks DP World’s fourth round of investment since operations began in Brazil in 2013. It comes at a crucial time with the port achieving record cargo movements in January, handling 11.9 million tonnes of cargo.

Bulk solids, such as sugar and soy, accounted for five million tonnes, up 13.9 percent compared to the same period in 2023, according to the Port of Santos.

CEO of DP World Santos, Fabio Siccherino, said: "We are thrilled to partner with Rumo on this transformative project, which underscores our commitment to driving growth and innovation in Brazil's logistics sector. This new terminal will not only bolster trade capabilities but also create long-term value for our customers and stakeholders."

In line with DP World's global decarbonisation strategy, the new terminal will be equiped with 21 new pieces of equipment, featuring advanced technology to reduce consumption and emissions of polluting gases.

DP World began the process of electrifying its Rubber-Tired Gantry Cranes (RTGs) at the Port of Santos in 2023.

DP World already invested $35 million in 2023 to expand and modernise its facilities at the Port of Santos.

The terminal currently inhabits 845,000 square metres, with an additional 130,000 square metres available for expansion.

Copyrights reserved to Aletihad News Center © 2024