Chinese Giant Invests BRL 1.2 Billion in Trains to Transport 4 Million Tons of Grains and Sugar to the Port of Santos

To expand the export volume of grains and sugar from its new terminal at the Port of Santos, the Chinese giant Cofco announced an investment of BRL 1.2 billion in the purchase of 23 locomotives and 979 wagons. The railway fleet has a transport capacity of up to 4 million tons of cargo. The products are sourced from the Midwest and Interior of São Paulo and will be destined for STS11, on the right bank of the Santos Port, which is expected to begin partial operations later this semester.

In a statement, the company informed that the assets will be delivered throughout the year “according to the release of capacities at STS11”. Rumo Logística will manage the operation. Cofco’s goal is to increase its annual export volume from the current 4.5 million tons to 14.5 million tons by 2026 via the Port of Santos.

To achieve this, the company is investing BRL 1.6 billion in STS11. The company has leased an area of 98,000 square meters on the right bank of the Port of Santos for 25 years, renewable up to a maximum of 70 years of concession.

“This investment in rolling stock focused on railways is the major project we have in mind to reach the expected cargo volume, all while considering sustainability. We want to continue growing sustainably, reinforcing our commitment to investing in the Brazilian agribusiness and positioning ourselves among the largest players in the sector,” said Cofco in a statement.

Logistical Challenges

According to Fabrício Degani, logistics director for Cofco’s grains and oilseeds division in Brazil, the company’s capacity expansion by nearly three times brings logistical challenges. “We chose this investment in railway assets that will sustainably allow our growth, reinforcing our commitment to investing in Brazilian agribusiness and positioning ourselves among the largest players in the sector. This business move is entirely linked to the strategy of reducing emissions and achieving the company’s goals,” Degani reiterated.

Expansion

Meanwhile, Eudis Furtado, commercial vice president of Rumo, highlighted in a statement that “with this unprecedented contract in grain and sugar transportation,” the two companies will be able to expand their participation in the Port of Santos. “Additionally, we are contributing to optimizing national logistics and reducing Brazil’s costs.”

The railway company informed that, in parallel, it is making other investments to increase its capacity at the Santos port complex, such as the North-South Railway, the Paulista Railway Network, and other projects. “The integration of all these investments by Rumo enhances the productivity of the Santos corridor, the main and most competitive route for exporting Brazilian agribusiness products, including grains, fertilizers, and sugar. Furthermore, it will drive growth for Brazil, providing more competitive solutions and better service for customers,” concluded Furtado.

Infrastructure

Cofco owns warehouses and crushing plants in the Midwest and four sugar mills in the Interior of São Paulo.

Source: PortoTribuna

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