Posted on October 9, 2024
As one of the world’s top agricultural exporters, Brazil is reinforcing its position in the global grain market with the development of a dedicated grain terminal at the country’s largest and busiest port –Santos. The terminal promises to boost Brazil’s export capacity by 12.5 million tonnes a year, strengthening the nations role as a leading supplier of soybeans, maize and fertilizers.
Recognizing this potential of this strategic location, DP World signed an agreement with Rumo, Brazil’s leading railway operator, in March this year to develop this cutting-edge facility. Designed to handle 9 million tonnes of grains and 3.5 million tonnes of fertilizers each year, the terminal will significantly enhance Brazil’s ability to meet growing global demand while streamlining the handling and transport of key commodities.
This collaboration marks DP World’s fourth round of investment in Santos since it began operations in 2013, further solidifying its position as Brazil’s leading multipurpose port operator– handling containers, cellulose, and soon, grains and fertilizers.
Powering Global Grain Supplies
Brazil’s agricultural strength is undeniable. The country accounts for nearly 43% of global soybean and maize exports, making it a critical supplier to nations such as China, India, Egypt, and the European Union. These regions represent 46% of global grain imports, underscoring Brazil’s essential role in feeding the world.
Between 2021 and 2023, Brazil’s grain exports surged from 102 million tonnes to 151 million tonnes. This remarkable growth contrasts with declines in exports from other countries, solidifying Brazil’s expanding influence in the global grain market. The trend is expected to continue, with the Brazilian Ministry of Agriculture forecasting a 24.1% rise in production over the next decade, bringing total output to nearly 390 million tons by the 2032/2033 crop season.
Advanced Infrastructure for Global Trade
Under the 30-year agreement with Rumo, DP World will provide the terminal area on the left bank of Port of Santos and manage its operations and port services.
The terminal will feature two berths designed to accommodate Capesize and Panamax vessels, along with two ship loaders for grains and an unloader for fertilizers, ensuring efficient loading and unloading operations.
Storage capacity will be substantial, with six grain silos holding up to 175,000 tonnes and a fertilizer warehouse capable of storing 70,000 tons in 12 bays. This setup facilitates seamless storage and transfers.
The terminal’s railway dispatch system is also optimized for efficiency, capable of loading two simultaneous wagons at 16 wagons per hour. With a railway hopper that can handle 3,000 tons per hour and accommodating 348 wagons per day. Road reception facilities include two tipping points and one direct discharge, handling 14 trucks per hour.
This sophisticated infrastructure not only boosts the port’s throughput but also streamlines Brazil’s grain and fertilizer export operations, enabling smoother logistics from farms to international markets.
Securing Brazil’s Agricultural Future
The total investment for the construction is estimated at $500 million, which will be financed through a combination of its own resources, loans, and potential strategic partnerships. As global demand for agricultural products continues to rise, Santos is poised to become a critical asset for Brazil and its international trade partners. The terminals expanded capacity will help reduce supply chain bottlenecks, ensuring timely deliveries to key markets such as China, India, and Europe, where food security concerns are driving higher demand for grain imports.
This development is a strategic investment not only in Brazil’s agricultural future but also in its broader economic growth. By improving export infrastructure at Santos, Brazil ensures it can keep pace with rising global demand while maintaining its competitive edge in the agricultural sector.
In addition, the terminal supports the country’s environmental goals. By reducing inefficiencies in logistics and transportation, it helps lower the carbon footprint associated with getting Brazil’s grains to market.
With the completion of the new grain terminal, DP World and Rumo will unlock the full potential of the Port of Santos, positioning Brazil to remain a major force in global agricultural trade and strengthens its role as a reliable supplier of essential food commodities to the world.
As Brazil’s agricultural production continues to expand, the new terminal will play a vital role in ensuring the country remains a top-tier global exporter, ready to meet the challenges of a growing global population and the rising demand for food security.
