VLI and ETG Fertilizantes announce strategic partnership in Palmeirante, boosting development in Tocantins

VLI, a logistics solutions company operating railways, ports, and terminals, and ETG Fertilizantes have announced a strategic partnership to establish a new industrial facility at the VLI Complex in Palmeirante, Tocantins, connected to the North-South Railway. The project marks ETG’s entry into the Brazilian market and reinforces Tocantins’ role as a key growth hub for the country’s agribusiness sector.

The new facility will have the capacity to produce up to 200,000 metric tons of fertilizer per year, in addition to a modern storage facility with a capacity of 45,000 metric tons. The estimated investment is approximately BRL 26 million.

The initiative will directly strengthen agricultural production in the region by expanding access to inputs, reducing farmers’ costs, and increasing the competitiveness of the Matopiba agribusiness region. The project is also expected to generate jobs and income, creating opportunities for the local population and establishing Palmeirante as a strategic development hub.

“Our partnership with ETG reinforces VLI’s commitment to driving the growth of the sectors that contribute most to the Brazilian economy, particularly agribusiness, while highlighting our Northern Corridor operations as a catalyst for regional development. By efficiently connecting production and markets, we help increase our customers’ competitiveness and promote sustainable local economic development,” said Carolina Hernandez, VLI’s Executive Director of Commercial, Projects, and Strategic Planning.

“ETG’s arrival in Brazil represents a strategic step in our global expansion journey. We are bringing our market-leading business model from Africa to Brazil, the world’s largest agricultural producer, reinforcing our commitment to being closer to farmers and regions with the greatest growth potential. Our partnership with VLI in Tocantins provides us with an efficient and competitive logistics platform. We will focus on supporting the sustainable development of agribusiness in Tocantins and throughout the Matopiba region,” said Thiago Briso, Director of ETG Brazil.

ETG Fertilizantes is part of a global group operating in more than 45 countries, spanning the entire agribusiness value chain, thereby enhancing the state’s ability to attract investment and new business opportunities. Through this initiative, Tocantins continues to attract strategic investments, strengthening its position as one of Brazil’s leading agribusiness growth regions.

TIPA Complex

The new investment is the latest positive outcome of the fertilizer logistics corridor inaugurated in 2022 by VLI through joint investments of approximately BRL 400 million with Companhia Operadora do Itaqui (Copi). The solution connects the Port of Itaqui, in Maranhão, to the Palmeirante Intermodal Terminal (TIPA). Since operations began, the logistics structure has attracted major companies to areas surrounding VLI’s terminal, with investments totaling nearly BRL 500 million.

In addition to promoting industrialization in northern Tocantins and expanding the availability of skilled jobs, VLI’s model helps create a fully integrated agribusiness logistics cycle. The structure combines fertilizer supply to increase agricultural productivity, fuel distribution for farming operations, and an efficient, safe, low-carbon rail transportation system along the Northern Section of the North-South Railway, operated by VLI, connecting to exports through the São Luís Port Terminal (TPSL).

The project also delivers sustainability benefits, as trains operate on return freight routes. Instead of returning empty from São Luís to collect grain at VLI’s terminals in Tocantins, the railcars now transport fertilizer inputs on the return journey, improving CO₂ emissions efficiency per ton transported.

Source: VLI

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