CHS Inc., the nation's leading farmer-owned cooperative, announced it has purchased 25 percent ownership of TCN, a recently-formed Brazilian logistics company founded by NovaAgri, Sao Paulo, Brazil. NovaAgri will own 75 percent of TCN shares. In addition to the ownership investment, CHS also signed a long-term agreement with TCN, securing export terminal access at the Port of Itaqui, Sao Luis, Brazil.
"This major and strategic investment gives CHS competitive access to the fastest growing region of Brazil and further strengthens our ability to supply soybeans and corn to global customers," says Stefano Rettore, senior vice president, CHS South America, Sao Paulo, Brazil. "We believe demographics and income growth, especially in developing economies, means the world demand for soybeans and corn will increase. This partnership fits into CHS aspirations to expand our global commodities footprint to meet growing demand, and to continue to add value to our member-owners' investment."
Infrastructure development at the Port of Itaqui is expected to greatly improve market access for Brazilian growers by reducing significant logistical bottlenecks and, Rettore says, increased exports will also improve Brazil's trade balance.
In October 2011, TCN was awarded the right to construct one of four export terminals in the Port of Itaqui, in the northeastern Brazilian state of Maranhao on the Atlantic Ocean. Construction will begin in August 2012, with completion expected during the second half of 2013.