Global ports giant DP World has struck a strategic alliance with Brazilian railway operator Rumo to construct a brand new cargo terminal at the bustling Port of Santos in Brazil. The collaborative project, estimated to cost $500 million, signifies DP World's continued expansion in South America's largest economy.
The state-of-the-art terminal, upon completion, will boast the capacity to handle a staggering 12.5 million tonnes of cargo annually, primarily focusing on grain and fertilizer. This enhanced capability is expected to solidify Santos' position as Brazil's primary gateway for international trade, further bolstering its role as a central trade hub for all of South America.
Rumo anticipates financing the project through a diversified approach, combining the company's own resources with potential loans and strategic partnerships.
Fabio Siccherino, CEO of DP World Santos, expressed optimism regarding the project's potential, highlighting its ability to not only strengthen trade capabilities but also generate long-term value for its stakeholders and clientele.
This latest venture marks DP World's fourth investment in Brazil since its initial foray into the South American nation's market in 2013. The company's commitment aligns with the UAE and Brazil's recent partnership aimed at fostering economic expertise exchange and propelling bilateral non-oil trade, which already stands at a robust $4.3 billion.
The Port of Santos, a vital link connecting Brazil to over 600 ports across 125 countries, recently achieved a record cargo movement in January of this year, exceeding 11.9 million tonnes. Notably, bulk solids, including key agricultural exports like sugar and soy, played a significant role in this achievement, contributing a commendable 13.9% increase compared to the same period in the preceding year.
The impending addition of the DP World-Rumo terminal is expected to significantly augment the port's capacity and efficiency, solidifying its status as a premier trade gateway not just for Brazil but for the entire South American continent. This strategic collaboration between a global ports leader and a prominent Brazilian railway operator has the potential to reshape the landscape of trade in the region.