VLI Hits 1 Million-Tonne Milestone in Dissolving Pulp Transport for LD Celulose

VLI, a giant in the Brazilian market of terminals, railways, and ports, achieved a significant milestone in November by transporting 1 million tonnes of dissolving pulp for LD Celulose since the beginning of their commercial partnership in 2022. This collaboration focuses on developing tailored logistics solutions for the movement of this commodity. The cargo is transported via VLI’s terminals and assets along the East Corridor of the Ferrovia Centro-Atlântica (FCA) en route to the Port of Barra do Riacho (ES), where it is shipped to the Asian market.

In 2021, VLI and LD Celulose signed a 30-year agreement to transport 500,000 tonnes of dissolving pulp annually from LD Celulose’s facility in Indianópolis, located in the Triângulo Mineiro region. The contract included investments in infrastructure such as railway yards and the acquisition of dedicated assets, including locomotives and wagons. VLI invested R$ 400 million to purchase 215 wagons—custom-built to meet the project’s needs in partnership with Randon—and nine locomotives from Wabtec, both domestic manufacturers.

Brazilian pulp exports grew 19% in the first half of 2024 compared to the same period in 2023, totaling USD 4.95 billion, according to the Brazilian Tree Industry (Ibá). Between January and June, pulp production rose 5.9% year-on-year to 12.7 million tonnes, with exports reaching 9.5 million tonnes.

“After two years of operations, reaching the impressive milestone of 1 million tonnes transported from the Indianópolis plant is incredibly rewarding. This achievement highlights our commitment to driving development and generating value for the country through efficient and safe operations. It also reflects our ability to deliver tailored solutions for our customers while boosting cargo throughput in Espírito Santo’s port system, a key strategic partner for us,” said Daniel Schaffazick, VLI’s Operations Director for the East Corridor.

Cellulose pulp exports from Espirito Santo state are gaining traction in Brazil. Currently, port terminals spread across other ports in the Brazilian south and southeast regions concentrate the country’s largest share of pulp exports. The following chart builds on DataLiner data, providing an overview of which ports stood out in terms of pulp export in the first ten months of 2024.

Cellulose Pulp Export Terminals in Brazil | 2024 | TEUs

Source: DataLiner (click here to request a demo)

LD Celulose emphasized the role of rail transport in improving operational efficiency and advancing sector growth. “At LD Celulose, we recognize the rail network as essential for the efficiency and sustainability of our operations,” said Silvio Costa, President of LD Celulose. “Our partnership with VLI enables us to transport large volumes of pulp safely and cost-effectively, strengthening our capacity to meet market demand.”

Enhancing Efficiency

Beyond acquiring wagons and locomotives, VLI invested in boosting the logistical efficiency of its rail operations. In Aracruz, Espírito Santo, approximately R$ 40 million was allocated to expand the shunting yard and build a facility for light wagon repairs. The investment also included commitments to social initiatives in the local community.

About the East Corridor

The East Corridor forms part of the FCA railway network, connecting the states of Minas Gerais and Espírito Santo. It supports key industries, including steel production, grain exports through the Tubarão Complex in Vitória (ES), and the transport of coal and fertilizers.

The corridor’s infrastructure includes the Araguari Integrator Terminal, the second-largest grain and fertilizer transshipment facility in Latin America, and the Pirapora Integrator Terminal in northwestern Minas Gerais, which enhances agricultural development opportunities in the region.

Currently, VLI moves approximately 16.7 million tonnes of cargo annually by rail and 16.2 million tonnes through Espírito Santo’s ports, utilizing the Ferrovia Centro-Atlântica in Minas Gerais and the Estrada de Ferro Vitória a Minas under passage rights.

Source: VLI

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