Cedro secures ore terminal project in Rio de Janeiro

In a significant win for Cedro Participações, the Minas Gerais-based company owned by businessman Lucas Kallas, the firm secured the ITG 02 iron ore terminal at the Port of Itaguaí in Rio de Janeiro during a non-competitive auction. Cedro offered a symbolic fee of R$1 million for the 35-year contract, awarded at a tender held on Wednesday (18) at the Exchange B3 headquarters in São Paulo.

The project entails building a brand-new terminal from scratch, requiring an investment of approximately R$3.53 billion.

This development is expected to address a long-standing need for smaller mining companies, which currently rely on Vale and CSN (Companhia Siderúrgica Nacional) terminals to transport their ore. Strategically located between these two major operators, the project has been dubbed the “middle area.”

Board member José Carlos Martins of the Cedro group celebrated the milestone, emphasizing that this development marks a transformative step for the mining company. “For the first time, we will have access to our own port for ore transportation,” said Mr. Martins, adding that the terminal would operate as an open-use facility.

In its initial phase, the terminal is expected to handle 20 million tonnes of ore annually, with plans for future capacity expansion. Construction is projected to take four years.

Cedro, which currently produces 7 million tonnes of ore annually across its Nova Lima and Mariana mines in Minas Gerais, is pursuing an ambitious growth strategy. According to Martins, production is set to increase to between 20 million and 25 million tonnes annually over the next five years.

“This investment is forward-looking. Right now, we are focused on the domestic market, but as Brazil’s ore production grows, there will be a shortage of port capacity. We’re preparing for that future demand. This terminal will be operational in four years, and by then, it will be even more critical than today,” Mr. Martins explained.

Regarding access to the MRS railroad—whose shareholders include CSN, Vale, Usiminas, and Gerdau—Mr. Martins expressed confidence, stating that the open-access nature of the railroad alleviates concerns. “MRS is an open-use railroad. It’s not an issue for us at the moment. By the time the port is ready, the railroad will have adapted,” he noted.

Here’s a chart that shows the iron ore export volume recorded for the Itaguaí Port between January 2021 and October 2024. This powerful information was derived from DataLiner. Readers may request an access demo through the link below.

Itaguai Iron Ore Exports | Jan 2021 – Oct 2024 | WTMT

Source: DataLiner (click here to request a demo)

In addition to the ITG 02 terminal, the federal government auctioned two smaller terminals on the same day, further advancing Brazil’s infrastructure development.

The solid bulk terminal in Santana, Amapá, known as MCP 03, was secured by Rocha Granéis Sólidos de Exportação after a competitive bidding process. The company won with a bid of R$58.06 million, narrowly outpacing Cianport (Companhia Norte de Navegações e Portos), which offered R$58.05 million. Other bidders included Arco Norte Infraestrutura e Logística with R$40 million and Atena Fundo de Investimentos with R$1 million. The 25-year contract for the terminal, primarily used for handling soybeans and corn, requires R$89 million in investments.

Sharing is caring!