SANTOS, BRAZIL, March 26, 2024 (GLOBE NEWSWIRE) -- Rumo, Brazil’s leading railway operator, and DP World, a global leader in supply chain solutions, 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, sourced from a mix of its own capital, borrowings and potential strategic partnerships, to finance the construction. 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," said Fabio Siccherino, CEO of DP World Brazil.
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About Rumo
Rumo is the largest private freight railroad operator in the country and offers a secure, competitive, and low-carbon logistics solution to support the growth of Brazilian agribusiness. We cross Brazil from north to south, managing approximately 14,000 kilometers 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. Our asset base consists of 1,400 locomotives and 35,000 wagons. We have over 8,000 employees nationwide, 9 transshipment terminals along the network, and 6 port terminals in the main Brazilian ports. We are the only Brazilian logistics company to be part of the Dow Jones Sustainability Index, as well as being included for the third consecutive year in the ISE B3 portfolio, the country's main reference for recognizing companies with the best sustainability practices.
About DP World
Trade is the lifeblood of the global economy, creating opportunities and improving the quality of life for people around the world. DP World exists to make the world’s trade flow better, changing what’s possible for the customers and communities we serve globally.
With a dedicated, diverse and professional team of more than 108,100 employees from 161 nationalities, spanning 74 countries on six continents, DP World is pushing trade further and faster towards a seamless supply chain that’s fit for the future.
We’re rapidly transforming and integrating our businesses -- Ports and Terminals, Marine Services, Logistics and Technology – and uniting our global infrastructure with local expertise to create stronger, more efficient end-to-end supply chain solutions that can change the way the world trades.
What's more, we're reshaping the future by investing in innovation. From intelligent delivery systems to automated warehouse stacking, we’re at the cutting edge of disruptive technology, pushing the sector towards better ways to trade, minimising disruptions from the factory floor to the customer’s door.
WE MAKE TRADE FLOW
TO CHANGE WHAT'S POSSIBLE FOR EVERYONE.
DP World Americas Media Contact:
Melina Vissat, Head of Communications
M: (+1) 704-605-6159
E: melina.vissat@dpworld.com
Melina Vissat DP World Americas (704) 605-6159 melina.vissat@dpworld.com
