Food sector giant will make billionaire investment in Santos Port

The works of the first phase of the new terminal of Cofco International, on the Right Bank of the Port of Santos, progress rapidly. The company intends to start operations at the site in 2025, gradually expanding until reaching full capacity in 2026.

The Chinese food giant leased STS11, between warehouses 12A and 15, in Paquetá, in 2022. The goal is to operate 14.3 million tons of vegetable bulk solids, between export and import.

Cofco acquired the terminal concession for 25 years, with the possibility of successive extensions up to a maximum limit of 70 years. In return, the company would have to invest R\$ 764.8 million in the facilities. However, will inject more than twice this amount: R\$ 1.5 billion.

Cofco began construction of the new terminal on August 8th of last year. There are two stages of work. "The first phase consists on the demolition of Bracell, Rishis, Rodrimar and Cereal Sul, involving practically 90% of the construction of the STS11 facilities. Already in phase two, the demolition of T12A and the construction of connections of the equipment with phase one will be carried out", the company said in a statement.

In the first stage, the company will provide approximately 62,000 square meters (m²). In the third year of the lease, the new area will be added, resulting in a total of 98,000 m².

Investments include works on two berths — including wharf reinforcement, deepening dredging and acquisition of two shiploaders - demolition and construction of new silos and warehouses, railway infrastructure and recovery of a historic building (traffic office) on-site. The company does not disclose the investments of each work separately.

Expansion

To give an idea of the size of Cofco's business expansion in the Santos port complex, currently the company operates 4.5 million tons/year which will jump to 14.3 million tons/year in 2026, "turning STS11 into the main terminal in Santos and the only one to concentrate all of Cofco International's cargo operations", the company reported, adding that "the terminal's static storage capacity will be 490,000 tons". Also 480 direct jobs will be generated with the works.

Cofco pointed out that it will support plans to increase exports from the country, expanding capacity to 14 million tons and investing in the modernization and expansion of terminal facilities. "The investment will also provide more options for farmers and create opportunities for Cofco to cooperate with local industry partners and logistics companies".

Presence in Brazil

Cofco has headquarters in nine brazilian states and in strategic regions in the Midwest and Southeast to serve Brazil and Latin America in supplying grains, oilseeds, cotton, sugar and coffee. The company has about 70 operations and two offices in Santos for cotton and coffee businesses.

Yard improves logistics

Cofco's lease agreement with the Port of Santos includes some counterparties. In addition to the transfer of R\$ 15 million for works at Parque Valongo, the construction of a railway yard in the area from warehouses 7 to 9 is planned.

Regarding the railway yard, Cofco reported that the works have already begun and are in the construction phase, with conclusion expected for the second half of 2025.

"The yard will consist in four main lines for Cofco railway unloading, with feed from three railway hoppers (where grains are stored) with a capacity of 1,500 tons/hour. The forecast is to receive three compositions of up to 120 wagons".

Transportation

The company will move cargo by rail and road modes. "Annually, over 200 ships will be loaded, more than 110,000 trucks unloaded, equivalent to over 2,250 km with all trucks in line, and over 85,000 wagons per year, totaling 1,450 km of wagons lined up".