Portos RS to allocate BRL 160 million to increase throughput of agricultural commodities

Portos RS is preparing to invest BRL 160 million in the ports of Rio Grande, Porto Alegre, and Pelotas in Rio Grande do Sul. In the second half of the year, the company plans to open a bidding process to build a new terminal for handling agricultural commodities in the port of Rio Grande, the busiest of the three.

According to Cristiano Klinger, the president of Portos RS, a portion of this sum has already been invested, while the remainder, initially scheduled for 2022, was delayed into the current fiscal year. The investment forecast for last year was R$ 120 million, and R$ 100 million was executed.

See below the movement of containers, as exports and imports, in Brazil’s Rio Grande Port between Jan 2019 and May 2023. The data is from DataLiner.

Container movement at Rio Grande | Jan 2019 – May 2023 | TEU

Source: DataLiner (click here to request a demo)

Increased autonomy

Portos RS underwent changes in May last year when the company transitioned from being a subordinate autarchy to the State Secretariat for Logistics and Transport to a public company with the state as the sole owner and controller. According to Klinger, this change has given the port authority greater autonomy in making budget and management decisions.

The company’s cash flow mainly comes from port operation fees and leasing contracts. As a result of the administrative change, the executive notes that they were able to invest in dredging the mooring channel of the public harbor area, as well as paving, signaling, and environmental monitoring tools.

This year, the company plans to proceed with the second stage of dredging and continue paving and signaling improvements. It is currently working on enhancing access to the public wharf by installing automated systems to enhance operational safety.

In addition to the public area, the complex includes nine leased areas and 22 private terminals that handle agricultural commodities such as grains, fertilizers, and cellulose. Agricultural products and inputs comprise a significant portion of the complex’s cargo flow, accounting for 30% to 35% of the State’s Gross Domestic Product.

Increasing throughput

From January to May of this year, the total throughput in Rio Grande alone reached 15.83 million tonnes, a 6% increase compared to the same period in 2022. Agricultural commodities account for 90% of the cargo handled by the complex. The volume of soybeans in grain experienced the highest growth at 88.64%, followed by urea (32.91%), phosphate (31.56%), soymeal (19.05%), and potassium chloride (11.44%).

New projects to expand operational capacity are on the horizon. Portos RS has identified available areas and aims to attract more agricultural cargo operators. The deadline for receiving proposals for using these sites ended a month ago.

Among the tenders that will soon be completed is the one for the Logistic Terminal for Rice at the port of Rio Grande, primarily intended for handling rice cargo but also other solid bulk commodities, excluding soy. According to the president of Portos RS, the site is operational, although it requires additional investments and improvements. As for the new agricultural terminal in Rio Grande, the company states that the process is progressing “as expected.” Klinger mentions that depending on the project for the site, operations can start within two years.

Source: Global Rural

To read the original story, please click on: https://globorural.globo.com/especiais/caminhos-da-safra/noticia/2023/07/os-planos-da-portos-rs-para-ampliar-a-movimentacao-de-cargas-agricolas.ghtml

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