DP World And Rumo To Construct Grain And Fertiliser Terminal At Santos Port, Brazil

DP World, a global port operator, has announced a strategic partnership with Rumo, a leading Brazilian railway operator, to construct a new terminal at the Port of Santos. This collaboration aims to significantly enhance Brazil's trade capabilities by handling 12.5 million tonnes annually of grains and fertilisers. The project, valued at BRL 2.5 billion (US$500 million), is set to transform the Port of Santos into Brazil's premier trade gateway and a crucial hub for South America.

The investment will be funded through a mix of Rumo's resources, loans, and potential strategic partnerships. This initiative is part of DP World's broader strategy to increase its container handling capacity at the port from 1.2 million TEUs to 1.4 million TEUs and extend the quay from 1,100 metres to 1,300 metres. The new terminal is expected to handle 9 million tonnes of grains and 3.5 million tonnes of fertilisers annually, with construction slated for completion in 30 months. During this period, all other services, including container handling at Santos, will proceed without disruption.

Under a 30-year agreement, DP World will provide the terminal area on the left bank of the Port of Santos to Rumo and oversee operations and port services. This partnership cements DP World's status as Brazil's top multipurpose port operator, capable of managing containers, cellulose, grains, and fertilisers simultaneously.

This venture represents DP World’s fourth investment in Brazil since commencing operations in the country in 2013. It arrives at a pivotal moment as the port recorded unprecedented cargo movements in January, handling 11.9 million tonnes of cargo. Bulk solids like sugar and soy contributed to this figure, with a 13.9 percent increase compared to the same period last year.

Fabio Siccherino, CEO of DP World Santos, expressed enthusiasm about the partnership with Rumo, highlighting its potential to drive growth and innovation within Brazil's logistics sector. "This new terminal will not only bolster trade capabilities but also create long-term value for our customers and stakeholders," Siccherino stated.

In alignment with DP World's global decarbonisation strategy, the new terminal will feature 21 pieces of advanced technology equipment designed to reduce energy consumption and emissions of polluting gases. Notably, DP World has initiated the electrification of its Rubber-Tired Gantry Cranes (RTGs) at the Port of Santos in 2023 as part of these efforts.

Additionally, DP World has already invested US$35 million in 2023 to expand and modernise its facilities at the Port of Santos. The terminal currently spans 845,000 square metres, with an additional 130,000 square metres available for future expansion.

This significant investment underscores DP World's commitment to enhancing Brazil's logistics infrastructure and supporting the country's economic growth through improved trade capabilities and sustainable operations.

With inputs from WAM