Rumo, Brazil's top railway operator, and DP World, a global leader in supply chain solutions, have entered a significant agreement to construct a new port terminal at the Port of Santos, Brazil. This joint initiative is set to augment the port's handling capacity by up to 12.5 million tons per year, including 9 million tons of grains and 3.5 million tons of fertilizers, thereby enhancing Brazil's agricultural competitiveness.
The new terminal will be established in DP World's private-use area on the port’s left bank. The agreement outlines an initial operational period of 30 years, with the possibility of extension based on DP World's approval. Rumo has committed an estimated investment of USD $500 million (R$ 2.5 billion) for the project, funded through its own capital, borrowings, and potential strategic partnerships. Construction is anticipated to take about 30 months, subject to obtaining necessary government approvals and meeting other conditions typical for such transactions.
Pedro Palma, CEO of Rumo, emphasized the strategic importance of the railway mode for efficient, secure, and environmentally friendly logistics, particularly for large commodity volumes. He highlighted the project's synergy with the State Railway of Mato Grosso, aiming to extend rail connectivity in the Midwest and reinforce the Port of Santos' role as a key agricultural logistics corridor and an economic growth driver.
DP World will be responsible for managing the port operations, which will include a diverse range of cargo movements, from containers and cellulose to grains and fertilizers. Fabio Siccherino, CEO of DP World Brazil, expressed that this partnership not only expands their operational capabilities but also underscores DP World's commitment to Brazil's economic development. By handling various cargo types, DP World aims to set new standards in the logistics sector and bolster its multimodality capacity, supporting Brazil’s agribusiness and optimizing railway transport for both exports and imports.
