Cosan advances project to build port terminal in Maranhão

In just over a year, Cosan has invested R$21 billion in new businesses, most of it (R$17.4 billion) in purchasing a 4.9% stake in mining giant Vale. And more is probably to come: the company will decide by mid-2024 on the construction of a terminal in the Port of São Luís, in the state of Maranhão, which would require $650 million in investments in its first stage.

The endeavor is most likely to get off the ground. With 200 hectares of licensed area, the terminal, fully owned by Cosan, would be located six kilometers from the Carajás Railway, with a structure ready for two berths and a potential for initially handling 25 million tonnes/year. This capacity could be later expanded to 115 million tonnes/year.

“We could start construction as early as 2024 if the decision is to move forward,” Leo Pontes, CEO of Cosan Investimentos, said during Cosan Day. In addition to the terminal, which would serve a region that suffers from logistical hurdles, Cosan signed a memorandum of understanding with Aura Minerals’ founder Paulo Brito to potentially establish a joint venture that would bring together the port and three mining assets in the state of Pará.

The plans for building the port terminal are currently more mature than those for forming the joint venture, which still depends on proving reserves, among other conditions that must be met by mid-2024. Cosan may construct the terminal on its own or seek alternatives, including other partners, if the joint venture does not go ahead. The project’s financing structure depends precisely on this definition.

According to Mr. Pontes, the multi-billion investment in Vale brought new developments compared to the previous strategy, including not exerting control over the business. Brazil’s antitrust watchdog CADE has authorized Cosan to increase its position in Vale up to 6.5%.

According to chairman Luis Henrique Guimarães, Cosan’s current business portfolio is in the ideal format and size, allowing it to export increasingly more products in which Brazil has a competitive advantage amid the advancement of the energy transition, regardless of the political and economic scenarios. “Our portfolio is the size we want and in the industries we want,” he said. “Carbon security is key for different nations, and we have companies positioned for this.”

Source: Valor Econômico

To read the original news article, see: https://valor.globo.com/empresas/noticia/2023/09/13/cosan-avanca-em-projeto-de-construcao-de-um-porto-no-maranhao.ghtml

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