(MENAFN) In a strategic move aimed at expanding its presence in Latin America, global ports operator DP World has joined forces with Brazilian railway operator Rumo to embark on a monumental project: the construction of a new terminal at Brazil's Santos port. Santos, renowned as one of the largest ports in Latin America, is set to undergo a transformation with this ambitious endeavor, poised to manage a staggering 12.5 million tonnes of cargo annually.
The magnitude of this undertaking is reflected in the estimated cost of the project, pegged at 2.5 billion Brazilian real, or approximately USD500 million, according to Rumo's projections. The financing for this venture will be a blend of Rumo's resources, loans, and potential strategic partnerships, as disclosed by the Dubai Government Media Office.
Upon completion, the state-of-the-art terminal will have the capacity to handle 9 million tonnes of grains and 3.5 million tonnes of fertilizers annually, positioning the port of Santos as a pivotal trade gateway and a central hub for South America. The timeline for this ambitious construction endeavor is set at 30 months, with DP World assuming responsibility for operations and port services under a comprehensive 30-year agreement.
Fabio Siccherino, Chief Executive of DP World Santos, expressed enthusiasm about the transformative impact of this project, emphasizing the commitment to driving growth and innovation in Brazil's logistics sector. Siccherino underscored the broader significance of the new terminal, highlighting its potential to enhance trade capabilities and generate long-term value for customers and stakeholders alike.
Notably, this initiative marks DP World's fourth round of investment since its foray into the Brazilian market in 2013, signaling the company's steadfast commitment to fostering strategic partnerships and spearheading transformative projects in key markets worldwide.
As construction commences and plans unfold, the collaborative efforts between DP World and Rumo are poised to redefine the landscape of Brazil's maritime and logistics infrastructure. The development of the Santos port terminal represents not only a significant investment in Brazil's economic future but also a testament to the enduring spirit of innovation and collaboration driving global trade and connectivity.
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