DP World has inked an agreement with Brazil’s leading railway operator Rumo to establish a new terminal for grains and fertilizers at Port Santos, according to a statement. The agreement will boost the port’s handling capacity by some 12.5 mn tons per year — including 9 mn tons of grains and 3.5 mn tons of fertilizer — in a bid to boost Brazil’s long-term agricultural competitiveness. Rumo will pour USD 500 mn of investment into the project.

The details: The new terminal will be developed in DP World’s private-use terminal on Santos’ left bank, the statement said. The agreement's initial operating period is for 30 years, with an option to extend subject to DP World’s approval. DP World will overlook port operations, including cargo movement.

The timeline: Construction is expected to take some 30 months, upon fulfillment of precedent conditions such as government approvals, the statement also said.

On a roll: DP World invested some USD 50 mn as part of a larger USD 85 mn terminal expansion project to boost its container operations at the port, acquiring 21 new port assets to increase capacity to some 1.7 mn TEU, according to a separate statement released last week.

What they said: “The railway mode is structurally the most effective, secure, competitive, and low-carbon logistics solution for moving large volumes of commodities for export, as well as for imported cargo, with inputs that increase the productive capacity of Brazilian agribusiness. Combined with the State Railway of Mato Grosso, which we are building to expand rail reach in the Midwest, the new terminal reinforces the prominence of the Port of Santos as the main logistics corridor for agriculture, and consequently a lever of competitiveness for the country's economy,” Rumo CEO Pedro Palma said.

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