Infrastructure

DP World teams up with Rumo for new Brazilian port terminal

April 2, 2024, 2:50 PM

Rumo predicts the port expansion with DP World will cost $500 million

$500m investment
12.5m tonnes of cargo
Bilateral trade worth $4.3bn

DP World and the Brazilian railway operator Rumo are to build a new terminal at the port of Santos in São Paulo, to handle 12.5 million tonnes of grain and fertiliser a year.

The project is intended to make the port Brazil’s primary gateway, and central to trade for South America.

Rumo estimates the total investment for the construction at $500 million. It will be financed through a combination of the company’s own resources, loans and, potentially, partnerships, a statement said.

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There were $35 million of investments into DP World’s container handling facilities at Santos last year, increasing capacity to 1.4 million 20-foot equivalent units (TEU) and expanding the size of the quay to 1,300 metres.

Once complete the new terminal will handle 9 million tonnes of grains and 3.5 million tonnes of fertilisers a year.

Construction is expected to take 30 months, Rumo said.

The new terminal marks the fourth round of investment since DP World operations began in Santos in 2013 under a 30-year agreement.

The port achieved record cargo movements in January, handling 12 million tonnes.

Fabio Siccherino, CEO 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.”

In September the UAE and Brazil launched a partnership to exchange economic expertise and build on bilateral non-oil trade of $4.3 billion in 2022.

Brazil is the UAE’s biggest trading partner in Latin America.

Exports from the country to the Arab world grew by 8 percent in the first seven months of 2023 to more than $10.6 billion. The UAE received goods worth $1.6 billion, second only to Saudi Arabia’s $1.9 billion.

According to the Arab Brazilian Chamber of Commerce, Brazil’s exports were dominated by food including poultry and meat, sugars, cereals, soya beans and coffee.