GLOBAL agribusiness giant, Cofco International, has announced a Reais 1.2bn ($US 204m) investment in 23 locomotives and 979 wagons. They will be used to transport grain and sugar from the central-west region of Brazil and the state of São Paulo to a new terminal at the Port of Santos.
The locomotives and wagons will have capacity to transport up to four million tonnes from Cofco’s warehouses and crushing plant in the central-west region and four sugar mills in the interior of São Paulo. Cofco says the investment is aiming to meet increased demand at the port, where it won an auction to lease the STS-11 terminal, where more than Reais 1bn is being invested to increase capacity. Transport and logistics will be conducted by Rumo.
“We are going to increase our capacity threefold, and this brings logistical challenges,” says Fabrício Degani, logistics director for the grains and oilseeds division of Cofco International in Brazil. “We therefore opted for this investment in railway assets that will enable our sustainable growth, reinforcing our commitment to investing in Brazilian agribusiness.”
The decision to expand rail operations is expected to reduce CO2 emissions by 80% compared with the use of road vehicles.
Rumo
Rumo is also increasing its activities at the Port of Santos through associated investments in major rail infrastructure improvement and expansion projects, notably the North-South Railway, the Mato Grosso railway, the Malha Paulista project, and expansion of facilities at the port itself.
“The integration of all these investments by Rumo increases the productivity of the Santos corridor, the main and most competitive corridor for the flow of Brazilian agribusiness, for grain exports, as well as fertilizers and sugar,” says Eudis Furtado, commercial vice-president of Rumo. “In addition, it will provide growth for Brazil, with more competitive solutions and a better level of service to our customers.”
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