Vports Restores Rail Link to Attract Grain Operations at Port of Vitória

Vports (formerly Codesa), the port authority of Espírito Santo state, has completed the restoration of the railway line connecting the Port of Vitória to the national network of the FCA railroad, operated by VLI. This move is aimed at enabling new grain operations at the port complex, according to Gustavo Serrão, president of the port company.

“Establishing a connection to the railway represents a milestone, linking the port to Brazil’s Midwest. I see great opportunities to capitalize on the port’s potential,” Serrão stated. “The port had no rail connection; only trucks could reach it. Today, we have tracks and sleepers in place, and we developed a rail loop. It’s ready.”

The executive explained that with the completion of the project, which cost around R$ 20 million, rail transport within the port complex is now possible, with initial operations expected to take place in no time. The idea is to attract investments in grain and fertilizer operations.

“If needed, we can start using it by tomorrow. It’s a reality that will likely reveal itself in upcoming harvests. At times, the system requires more export routes. Next year, we’ll already be an alternative when the port reaches capacity. However, the rail line also opens the door for future projects. To scale this up, additional investments in railcars and possibly locomotives will be necessary,” Serrão noted.

Vports is currently in talks with the rail operator and potential port clients to secure these additional investments. However, a challenge remains: with FCA’s early renewal still unresolved, VLI is unlikely to make long-term investments in the railway. Nevertheless, Serrão mentioned that alternatives are being explored to make the necessary investments feasible.

In addition to the rail restoration, Vports has already invested R$ 50 million in the installation of horizontal silos to operate bulk cargo, effectively doubling the port’s storage capacity, Serrão added.

Vports, controlled by Quadra Capital, was created from the privatization of Codesa (Companhia Docas do Espírito Santo) in September 2022. Since the group took over control of the port complex, the port authority has invested R$150 million directly, with an additional R$100 million from terminal operators.

One of the main drivers of the project is the “greenfield” development of currently unused areas in Barra do Riacho. “We are working on the potential of this area. There are still several discussions regarding offshore applications and thermal energy generation. These are points we’re considering, along with other alternatives and opportunities,” Serrão said. He noted that new projects at the site are subject to confidentiality.

Source: Valor Econômico

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