Cofco to Begin Operations at New Port Terminal in Santos

Chinese agribusiness giant Cofco is set to begin operations at what it describes as the largest terminal within the Port of Santos by the end of March. The facility required R$1.64 billion in direct investment, plus an additional R$1.2 billion for the purchase of 979 railcars and 23 locomotives, according to the company.

The project is part of China’s Agriculture Going Global strategy, proposed three decades ago and officially launched in 2007 to drive agricultural investments worldwide. This initiative was a precursor to the Belt and Road Initiative, now better known.

Once fully completed by the end of this year, Cofco expects the terminal to handle 14 million tonnes annually, primarily soybeans, corn, and sugar. For 2025, throughput is projected at 8 million tonnes, with 5.5 million tonnes of soybeans and corn and 2.5 million tonnes of sugar.

The following chart exhibits the soy export volume recorded for Brazil’s Port of Santos since January 2022. The data comes from DataLiner.

Soy Exports | Port of Santos | Jan 2022 – Jan 2025 | WTMT

Source: DataLiner (click here to request a demo)

This will be Cofco International’s largest export terminal globally—operating in 36 countries—and, according to Cofco Brazil CEO Luiz Noto, “the busiest terminal in dynamic cargo throughput in Santos.” The facility will centralize all of the company’s cargo operations in Brazil.

Cofco International Vice President Yunchao Wang said in an interview last year that the company’s primary focus is on Santos, rather than the recently inaugurated megaport of Chancay, Peru, another potential export route to China.

Asked about geopolitical risks surrounding the Panama Canal, an alternative route to China, Noto confirmed that vessels from the new Santos terminal will sail via the Cape of Good Hope in Africa instead.

China’s longstanding strategic objective for the initiative has been food security—ensuring stable supplies of agricultural commodities from abroad due to the country’s limited arable land.

Cofco-led enterprises have invested in logistics and agricultural production from Laos to Uzbekistan and Ukraine, spanning supply chain infrastructure, research, and development. In Brazil, the company’s footprint extends from grain storage and crushing plants in the Midwest to four sugar mills in São Paulo’s interior, Noto noted.

Cofco secured the 98,000-square-meter terminal concession through a public auction three years ago, with a lease extending for at least 25 years. Additional investments include plans to automate port logistics, including rail transport—similar to systems used in China and Chancay, Peru.

Over time, the facility will serve other industry players, not just Cofco, according to Noto. He emphasized that “Brazil is essential to Cofco’s global operations, a critical agricultural hub for our business.”

A 2023 food security study by Renmin University in Beijing recommended that China “further encourage Cofco to expand its direct participation in agricultural commodity trading,” including the futures market—citing the negative impact of the Ukraine war on global supply chains.

Cofco International entered Brazil in February 2014 by acquiring a controlling stake in Dutch grain trader Nidera. Since then, it has expanded through acquisitions and partnerships with local producers. Today, two-thirds of its 11,000 employees are based in Brazil.

As recently as 2022, Cofco was absent from Brazil’s list of the top 1,000 largest companies, as ranked by Valor/Serasa/FGV. By 2024, it had surged to 14th place.

When asked about further growth plans, Noto stated that “seeking new business opportunities is in the company’s DNA—we are always monitoring market trends,” without providing specifics.

Competing with U.S. Agribusiness Giants
Cofco’s top global competitors remain U.S. trading giants Cargill and Bunge. However, its market differentiation strategy aligns with Beijing’s environmental priorities over the past decade.

For instance, according to Noto, the newly announced investment in rail assets will enable Cofco to “expand sustainably, reinforcing our commitment to Brazilian agribusiness while reducing emissions.”

The new terminal’s inaugural shipment will be 1.5 million tonnes of deforestation-free soybeans bound for China.

Source: Santa Portal

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