Accelerating its investments in Brazil, Cargill is interested in two important projects in this grain producer country. One of them is a terminal project for the transport of cereals from the Brazilian grain cultivating region Mato Grosso. The other is the Ferrogrão railway project, which will connect the grain grown areas to the ports in northern Brazil.
Cargill, one of the world’s leading food and agribusiness companies, is planning to carry out some important projects regarding grain logistics in Brazil. The company has issued an environmental impact assessment report to the Brazillian authorities to built a new river terminal in the state of Pará. According to a statement made by the company’s Brazilian office, the river port facility planned to be built on the Miritituba River and will cost 212 million dollars. With the capacity to move about 6 million tons of grains per year, the future port would likely kick off operations between 2022 and 2025, Reuters reported. Located in the town of Abaetetuba, the facility would receive barges loaded at the Miritituba river port with grains coming mainly from Mato Grosso state, Brazil’s largest producer. The harbors in the north of the country have a strategic significance in exporting the Brazillian grain to the world market.
$ 4.3 BILLION CONSORTIUM FOR RAILWAY PROJECT
Cargill is also negotiating to establish a consortium to bid for a $4.3 billion railway project that would unite grain-growing regions in central Brazil with northern ports. Cargill is in talks with Archer Daniels Midland Co., Bunge Ltd, and Brazilian Amaggi to form a consortium, said Luiz Pretti, the head of Cargill’s Brazilian unit. Pretti also said the company plans to invest $ 153 million in the country next year. He emphasized that 70 percent of this investment will be spent on infrastructure projects.
1100 kilometers long the Ferrogrão railway will connect the grain-producing regions to the port of Miritituba. The Brazilian government is expected to issue a 65-year operating license for this railway project, which will carry 42 million tons of grain annually. Adalberto Vasconcelos, Brazil’s secretary for the government’s public-private partnerships programme, had announced that state-owned Chinese companies intend to form a consortium to take part in the auction for the right to build and operate the 1,100km Ferrogrão route.