Railway loop construction progresses at the Port of Santos

Work carried out on the Right Bank by AG-Fips is considered fundamental for the Port of Santos to improve efficiency in the railway sector (Silvio Luiz/AT)

A strategic logistical solution for grain outflow at the Port of Santos, the railway loop is currently under construction, with the second phase of the interventions expected to be completed next month. The structure, located in Outeirinhos, on the Right Bank of the Santos port complex, will cover an area of 102,000 square meters (m²), currently occupied by Marimex's terminal.

The interventions began in January, led by the Managing Association of the Internal Railway of the Port of Santos (AG-Fips), the private concessionaire of the Internal Railway of the Port of Santos (Fips), with a scheduled completion time of 24 months.

The project involves the construction of a circular yard that will allow cargo transshipment without the need to break down the train.

Contacted, the Santos Port Authority (APS) informed in a statement that Fips is adhering to the schedule. The first phase, for instance, which involved reinforcing the viaduct, began in October 2023 and was completed in January of this year. The second phase, concerning the clearance of vacant areas (unoccupied spaces with structures or other unused items), is nearing completion and is expected to be finished next month.

Also in November, according to APS, Fips will begin the third phase, “which involves the installation of rail tracks and other items for load intake. ”

In exchange for providing the area for the railway loop’s construction, Marimex will receive another area of the same size, previously part of the former Teval, to which it will be relocated. The company, which is expected to vacate its current space by February 2026, stated in a note that it plans “R\$ 300 million in investments over the next two years. The construction, with a 24-month timeline, is set to begin once all the necessary licenses are obtained and the other projects affecting the terminal are optimized. ”

Crucial and imperative moment APS notes that the railway loop construction “is progressing at a crucial moment.” This is due to the arrival of the Eldorado, Bracell, and Suzano pulp terminals in Macuco, as well as the expansions of ADM, TES, and XXXIX in Ponta da Praia, in the export corridor, where approximately 44 million tons will be handled annually.

“The loop is an essential piece of equipment for these terminals to meet their minimum contractual handling obligations. Additionally, there are the terminals located in Outeirinhos, such as Copersucar and CLI, which together handle around 23 million tons annually.”

The Port Authority adds that with the new Cofco terminal, expected to handle 15 million tons annually, the completion of the loop “becomes even more imperative.” “This project is vital not only for the Port of Santos and its port terminals but also for the entire logistics chain of Brazilian agribusiness.”

Growth Railway consultant and commercial manager of Mota-Engil Engineering, Alan Jones Tavares, emphasizes the increase in capacity at the Port of Santos with the existence of the railway loop.

“With it, it’s possible to increase the speed of train maneuvers. Without it, you lose a lot of productivity in unloading and returning them. It’s an area that essentially affects no one. The macroenvironment of the Right Bank is impacted in a much more favorable way for operations. We could see a 5% to 10% increase in the port's capacity because operations become significantly faster”, he predicts.