DP World and Rumo to develop new facility at Port of Santos
Construction is expected to take 30 months, while all other services including container handling at Santos will continue
A deal has been inked that will see DP World and Brazilian railway operator Rumo develop a new US $500mn terminal at the Port of Santos. The facility will be able to handle 12.5m tonnes a year of grain and fertiliser, and is expected to position the port as the country’s primary trade gateway and a key hub for South America.
The expansion is in addition to recent investments in DP World’s container handling facilities in the port, increasing capacity from 1.2m TEUs to 1.4m TEUs, while expanding the size of the quay from 1,100m to 1,300m.
The new project will leverage Rumo’s resources in addition to loans and potential strategic partnerships. Construction is expected to take 30 months, all other services including container handling at Santos will continue, with no impact to container handling operations.
“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. This new terminal will not only bolster trade capabilities but also create long-term value for our customers and stakeholders,” said Fabio Siccherino, CEO of DP World Santos.
Once complete, the new terminal will handle nine million tonnes of grains and 3.5m tonnes of fertilisers a year. Under the 30-year agreement, DP World will provide the terminal area located on the left bank of Brazil’s Port of Santos to Rumo and assume responsibility for operations and port services. The port is one of the largest and most modern private multi-purpose port terminals in the country, said a statement.
The collaboration is said to solidify DP World’s position as the country’s leading multipurpose port operator, capable of simultaneously handling containers, cellulose, grains and fertilisers.
The new terminal marks DP World’s fourth round of investment since operations began in Brazil in 2013. It comes at a crucial time with the port achieving record cargo movements in January, handling 11.9m tonnes of cargo. Bulk solids, such as sugar and soy, accounted for five million tonnes, up 13.9% compared to the same period in 2023, according to the Port of Santos.
In line with DP World’s global decarbonisation strategy, the new terminal will be equipped with 21 new pieces of equipment, featuring advanced technology to reduce consumption and emissions of polluting gases. DP World began the process of electrifying its Rubber-Tired Gantry Cranes (RTGs) at the Port of Santos in 2023.
DP World is said to have already invested $35mn in 2023 to expand and modernise its facilities at the Port of Santos. The terminal currently inhabits 845,000sqm, with an additional 130,000sqm available for expansion.
