Global ports operator DP World has partnered with Brazilian railway operator Rumo to build a terminal at Brazil’s Santos port – one of the largest ports in Latin America – to manage 12.5 million tonnes of cargo annually, as it expands its footprint in the continent.
The total cost for the construction of the new complex is estimated to be 2.5 billion Brazilian real ($500 million), according to Rumo’s estimates.
It will be financed through a combination of Rumo's resources, loans, and potential strategic partnerships, Dubai Government Media Office said on Tuesday.
Once finished, the new terminal will be capable of handling 9 million tonnes of grains and 3.5 million tonnes of fertilisers annually. It aims to position the port of Santos as Brazil’s main trade gateway and a key hub for South America.
The construction work is expected to finish in 30 months, and the Dubai-based operator will also look after the operations and port services under the 30-year agreement.
“We are thrilled to partner with Rumo on this transformative project, which underscores our commitment to driving growth and innovation in Brazil's logistics sector,” Fabio Siccherino, chief executive of DP World Santos, said.
“This new terminal will not only bolster trade capabilities but also create long-term value for our customers and stakeholders,” he added.
The new terminal marks DP World’s fourth round of investment since commencing operations in Brazil in 2013.
Port of Santos, which connects over 600 ports in 125 countries, reported a record cargo movement in January, handling 11.9 million tonnes of cargo. Bulk solids, including sugar and soy, contributed 5 million tonnes, a 13.9 per cent increase compared to the same period last year.
In the past few months, DP World has invested more than $10 billion in the global logistics sector since 2012, making it one of the top five overseas investors during the period, the Dubai Media Office said last year.
Last year, it invested $35 million to expand and modernise its facilities at the Port of Santos, according to Dubai Media Office. The terminal currently inhabits 845,000 square metres, with an additional 130,000 square metres available for expansion.
In August, it signed a $510 million concession agreement with the Deendayal Port Authority in the state of Gujarat in India to develop, operate and maintain a new 2.19 million twenty-foot equivalent units (TEU) per year mega-container terminal at Tuna-Tekra in Kandla.
In February this year, it started the construction of a $150 million agri-terminals complex at Jebel Ali Port in a bid to bolster the UAE’s food security.
