COFCO International has announced an investment of USD 240 million in the acquisition of 979 wagons and 23 locomotives for its logistics operations, in collaboration with Rumo. This strategic move aims to meet the rising demand at the company’s new terminal at the Port of Santos.
The newly acquired assets will have the capacity to transport up to four million tons of grain and sugar from key agricultural regions. These include the Central-West region, where COFCO operates warehouses and a crushing plant, and the interior of São Paulo, where the company owns four sugar mills. These commodities will be transported to the COFCO Export Terminal (TEC), located at STS-11 in the Port of Santos.
By prioritising rail transport over road transport, COFCO is significantly reducing its environmental impact. It is estimated that shifting these freight volumes from trucks to trains will cut CO₂ emissions by approximately 80%, reinforcing the company’s sustainability commitment.
According to Fabrício Degani, Logistics Director for the Grains and Oilseeds Division at COFCO International in Brazil, this investment follows COFCO’s successful bid for the lease of STS-11 at the Port of Santos. The terminal itself has received more than $200 million in investment to enhance export capacity.
“We are tripling our export capacity, which brings significant logistical challenges. This investment in railway assets ensures that we can expand sustainably, reaffirming our commitment to Brazilian agribusiness and strengthening our position among the largest players in the sector,” explains Degani.
Eudis Furtado, Commercial Vice President of Rumo, emphasised the strong partnership between the two companies, stating that this investment underscores mutual confidence in their long-term collaboration.
“COFCO is already an important partner for Rumo. This groundbreaking contract for the transportation of grains and sugar will allow both companies to strengthen their presence at the Port of Santos, Brazil’s most significant port. Additionally, we are enhancing national logistics and reducing costs for Brazil’s agribusiness sector,” Furtado stated.
Alongside this agreement, Rumo has been making substantial investments to expand its operational capacity at the Port of Santos. Key projects include:
- The North-South Railway
- The Mato Grosso Railway
- The Malha Paulista network improvements
- A new terminal at the Port of Santos
According to Furtado, these efforts boost productivity along the Santos corridor, which remains Brazil’s primary and most competitive route for exporting agricultural products, including grains, sugar, and fertilisers.
“By integrating these investments, Rumo is creating more competitive solutions, increasing Brazil’s export capacity, and delivering superior service levels to our clients. This investment represents a crucial step in strengthening the country’s logistics infrastructure,” he concluded.
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