Port of Itaqui at its limit grain capacity

The consortium formed by TCN, Viterra, CLI, and ALZ Grãos, which manages the grain terminal at the Itaqui port (Tegram), filed a request this week seeking the early renewal of its port concession contract, which is set to expire in 2037.

The reason behind this move is the strong demand for grains and the need to expand the terminal’s infrastructure. With two phases of the original project implemented, Tegram has handled a volume 50% higher than expected. It was initially anticipated that Phases 1 and 2 would bring about a throughput of 10 million tonnes. However, the port has already handled 15 million tons.

The chart below the most exported goods through the Port of Itaqui between January and December 2023. The data is from DataLiner.

Top Exports | Itaqui Port | Jan 2023 – Dec 2023 | WTMT

Source: DataLiner (click here to request a demo)

“In eight years, we managed to exhaust the capacity of the terminal. By 2037, we will have new areas in production, more developed technologies, and we need to grow to meet the demand,” said Marcos Pepe Bertoni, president of Tegram, to IM Business.

The request for early renewal coincides with the commencement of investment in the terminal’s third phase, which envisages investments of R$1.6 billion from the partners. Originally, the third phase only included the construction of Tegram’s third berth.

Given that capacity has already been reached, the new proposed plan entails expanding storage and truck reception areas. Consequently, the terminal could handle 23 million tonnes of grains per year.

Thus, in addition to early renewal, the consortium is also requesting densification. In practice, this means authorization to build new structures in an area adjacent to the existing warehouses.

Tegram’s primary focus has been on soybean exports. Out of the 15.6 million tonnes handled in 2023, just over 65% were tied to soybeans, representing a 6.5% growth compared to 2022.

The expectation is that soybeans will remain the terminal’s flagship product, but the growing international demand for Brazilian corn is catching the consortium’s attention. Last year alone, corn shipments from Tegram grew by almost 40% and reached 5.3 million tonnes.

The four companies in the consortium that manages Tegram have distinct operations. TCN is a partnership formed between Toyota (75%) and CHS (25%), an American cooperative representing approximately 500,000 producers.

ALZ Grãos has LDC, Amaggi, and the Japanese Zen-Noh Grãos as partners. Viterra was recently acquired by Bunge, which is expected to take over the operation once the deal is approved by regulatory authorities.

As for CLI, the company’s partners are the Macquarie funds and the private equity IG4 Capital. The company is a logistics operator and provides services in Itaqui to ADM, Cargill, and Cofco.

Source: InfoMoney

Click here to read the original news piece: https://www.infomoney.com.br/business/porto-de-itaqui-chega-ao-limite-para-graos/

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