Food sector giant to make billion-dollar investment in the Port of Santos

The construction of the first phase of Cofco International’s new terminal on the Right Bank of the Port of Santos is progressing swiftly, with the Chinese agribusiness giant aiming to begin operations in 2025. The facility is expected to reach full capacity by 2026.

Cofco International secured the lease for STS11, located between warehouses 12A and 15 in Paquetá, in 2022. The terminal is projected to secure a throughput of 14.3 million tonnes of solid vegetable bulk in both export and import operations.

Under the terms of the 25-year concession, which can be extended up to 70 years, Cofco committed to investing R$764.8 million in the terminal. However, the company plans to exceed this initial investment, pouring in R$1.5 billion.

Cofco commenced on-site works on August 8, 2022. The project is divided into two phases. “The first phase involves the demolition of pre-existing facilities including Bracell, Rishis, Rodrimar, and Cereal Sul, accounting for roughly 90% of the STS11 construction. Phase two will involve the demolition of T12A and integration of the new equipment with phase one,” Cofco stated.

During the first stage, Cofco will develop approximately 62,000 square meters of the terminal area. By the third year of the lease, this will expand to 98,000 square meters.

The project includes extensive work on two berths, reinforcement of quays, dredging, acquisition of two shiploaders, demolition and construction of new silos and warehouses, railway infrastructure improvements, and restoration of a historic traffic office building. The company has not specified the investment breakdown for each project.

Expansion Plans

Cofco’s operations at the Santos port complex are set for significant expansion. Currently boasting a 4.5 million tonnes throughput annually, the company’s capacity will increase to 14.3 million tonnes per year by 2026. “This will make STS11 the main terminal in Santos and the sole facility for all Cofco International cargo operations,” the company highlighted, noting that the terminal’s static storage capacity will reach 490,000 tonnes. The expansion is expected to create 480 direct jobs.

Cofco’s investment is aligned with national export growth plans, aiming to enhance terminal capacity and modernization. “The investment will offer more options for farmers and create collaboration opportunities with local industry partners and logistics companies,” Cofco stated.

The Port of Santos is currently Latin America’s largest and accounted for approximately 29.1% of all Brazil’s commercial transactions in April 2024, according to the Santos Port Authority. The chart below shows maritime imports and exports of containers handled at the port. The information was derived from DataLiner.

Container Exp & Imp | Port of Santos | Jan 2021 – Mar 2024 | TEUs

Source: DataLiner (click here to request a demo)

National Presence

Cofco operates across nine Brazilian states, strategically positioned in the country’s Midwest and Southeast to support the grain, oilseed, cotton, sugar, and coffee sectors in Brazil and Latin America. The company manages around 70 operations and maintains two offices in Santos for its cotton and coffee businesses.

Improved Logistics

The lease agreement includes several commitments. Besides investing R$15 million for works at Parque Valongo, Cofco is constructing a railway yard in the area of warehouses 7 to 9. The railway yard construction is underway and is expected to be completed by the second half of 2025. “The yard will feature four main lines for unloading cargo, an endeavor supported by three hoppers with a capacity of 1.5 thousand tonnes per hour. We expect to receive three trains of up to 120 wagons each,” Cofco elaborated.

Transport and Operations

Cofco’s operations will involve both rail and road transport. Annually, the terminal is projected to assist with loading over 200 ships and unloading more than 110,000 trucks and 85,000 wagons, equating to significant logistical throughput.

Source: A Tribuna 

Click here to read the original news piece: https://www.atribuna.com.br/noticias/portomar/gigante-do-setor-de-alimentos-fara-investimento-bilionario-no-porto-de-santos

Sharing is caring!