AD Ports plants flag in Brazil with USD 835 mn acquisition

AD Ports expands into Brazil with USD 835 mn acquisition: AD Ports Group acquired Brazilian agri-bulk terminal operator Corredor Logistica e Infraestrutura (CLI) in a USD 835 mn (c.AED 3.1 bn) agreement, marking its entry into the Brazilian market, according to a disclosure (pdf).

Expected to close in 2H, the transaction will give AD Ports control of two major export gateways — which handle a significant share of Brazil’s agricultural commodity exports. CLI owns 100% of CLI Norte at the Port of Itaqui and an 80% stake in CLI Sul at the Port of Santos. CLI Norte serves as a key grain export gateway in the country’s growing “Arc of the North” logistics corridor, while CLI Sul is Brazil’s largest sugar export terminal and also handles corn and soybean volumes.

Location, location, and location: Spanning northern Brazil and the Amazon basin, the region has emerged as one of the country’s fastest-growing export corridors, as agricultural producers increasingly seek shorter, more efficient routes to international markets.

A change in presence across the region: While the group already has logistics operations across Latin America through its Noatum subsidiary, including activities in Argentina, Chile, Colombia, Mexico, and Peru, the acquisition of CLI gives it ownership of strategic port infrastructure in Brazil for the first time.

Why this matters: AD Ports is gaining a larger role in global commodities trade, buying a foothold in one of the world’s most important agricultural export markets. Brazil is the world’s largest sugar exporter and a major supplier of corn, soybeans, and grains. This move extends the strategy of building an end-to-end logistics network.

Not the first Emirati foot to land in Brazil: DP World also deepened its presence at the Port of Santos through a long-term agreement with Maersk in March of last year and announced plans to expand capacity at its Brazilian terminal from 1.4 mn TEUs to 2.1 mn TEUs by the end of 2027. The port operator has also partnered with the railway operator Rumo to develop a new grain and fertilizer terminal — showing interest in Brazil’s role as a commodities export powerhouse.