CHS is partnering with a Brazilian railroad to build a $440 million grain terminal at Latin America’s largest port.
CHS partners on $440 million grain terminal in Brazil
The Minnesota-based cooperative has formed a joint venture with Brazilian rail giant Rumo.
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The Minnesota-based agriculture cooperative announced a 50/50 joint venture with the Rumo railroad operator on Thursday to construct the terminal at the Port of Santos, south of São Paulo. The proposed facility would handle up to 9 million tons of grain and 3.5 million tons of fertilizer annually.
The investment comes amid Brazil’s rise as a major agricultural exporter, especially to China, which has put pressure on American farmers’ access to global markets. Brazil is the top soybean exporter and second-largest corn exporter in the world, shipping just a little less than the United States last year.
“Brazil is a growing producer and shipper of crops that CHS global customers rely on, and this project creates long-term value for our U.S.-based owners by strengthening the position of CHS as a competitive supplier of grains and oilseeds for customers around the world,” said John Griffith, executive vice president for agriculture and CHS Hedging.
Once the project receives full approvals, it will take more than two years to construct. CHS will cover half the cost.
Rumo first announced the project in March and said it would cost 2.5 billion Brazilian reais, or roughly $440 million, while teasing the potential for partnerships.
“This investment, combined with the increase in capacity in the railway system and the expansion of Rumo in Mato Grosso, will offer the market a safe, competitive and low-carbon logistics solution to sustain the growth of Brazilian agribusiness,” the company said, in a news release in Portuguese.
Port operator DP World will run operations at the terminal.
Inver Grove Heights-based CHS is no stranger to global joint ventures and last year announced it would build a grain terminal in Australia with Broadbent Grain. The country has been a leading barley producer and second-largest wheat exporter in recent years.
A Minnesota woman initially brought the claim after being denied “reasonable accommodations” following an injury.