DP World and Rumo announce agreement to develop a new grain and fertilizer terminal at Brazil’s Port of Santos

DP World and Rumo announce agreement to develop a new grain and fertilizer terminal at Brazil’s Port of Santos

Date: 26/03/2024

Enhancing Brazil’s agricultural competitiveness, the new terminal will handle 12.5 million tons annually, signifying a major leap in port capacity and efficiency.

DP World, a global leader in supply chain solutions, and Rumo, Brazil’s leading railway operator, have signed an agreement to build a new port terminal for grains and fertilizers at the Port of Santos, Brazil. This collaborative 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 – boosting the nation's agricultural competitiveness over the long term.

The project will be installed in DP World's private-use terminal on the port’s left bank. The agreement provides for an initial operating period of 30 years, with an option for extension subject to DP World approval. Rumo has committed an estimated investment of USD$ 500 million (R$ 2.5 billion) towards the project, with potential strategic partnerships throughout the implementation course. Construction is expected to span 30 months, pending the fulfillment of precedent conditions inherent to this type of transaction, including relevant government approvals.

"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, with inputs that increase the productive capacity of Brazilian agribusiness. 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, and consequently a lever of competitiveness for the country's economy," said Pedro Palma, CEO of Rumo.

DP World will oversee the ensuing port operations, including cargo movement, solidifying its position as Brazil’s premier multipurpose port operator. This responsibility will require managing a wide range of operations simultaneously, from containers and cellulose to grains and fertilizers.

"This partnership not only signifies an expansion of our operational capabilities but also reaffirms DP World's commitment to Brazil's economic growth. By managing a diverse range of cargo, including containers, cellulose, grains, and fertilizers, we are setting new benchmarks for excellence in the logistics sector. By providing this infrastructure, we will expand our multimodality capacity. Our role in this project underlines our dedication to supporting Brazil’s agribusiness, optimizing railway transport and meeting export and import demands efficiently," highlights Fabio Siccherino, CEO of DP World Brazil.