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Mato Grosso ferts terminal starts in April

31 Jan 2018 18:04 GMT
Mato Grosso ferts terminal starts in April

Houston, 31 January (Argus) — The first railway-linked fertilizer terminal in Brazil's leading grain state of Mato Grosso is forecast to start operations in April, improving the transport of crop nutrients that have historically been hauled by truck to the land-locked center-west state.

Brazilian logistics firm Rumo, which operates 12,000km of railway in Brazil, said it plans to make its first shipments of fertilizer in April from the southeastern port of Santos on the coast of Sao Paulo state to its new fertilizer terminal located in the grain transport hub of Rondonopolis, in Mato Grosso.

The terminal will be operational ahead of the peak fertilizer buying season, before the main soybean planting season, which gets underway in the state in September.

The terminal, a joint venture between Rumo and local logistics firm JM-Link, will require investments of R200mn ($63mn) and have capacity to transport 7.5mn tons of fertilizer a year.

It will have a static capacity to hold 64,000t of crop nutrients in its first year of operations but will be expanded to handle 50pc more in the future.

The terminal will also have packaging services to put fertilizer into so-called big bags which hold up to one ton of fertilizers and will be able to load 12,000 t/day on to trucks for delivery in and around the state.

Mato Grosso is Brazil's biggest soybean and corn producing state as well as the country's biggest consumer of fertilizers. The state consumed 6.8mn t of crop nutrients in 2017, nearly 20pc of Brazil's total consumption of fertilizers, according to data from Brazil's fertilizer industry association Anda.

Brazil imported 76pc of its annual consumption in fertilizers in 2017 according to Anda, and most of Mato Grosso's consumption is imported through the ports of Santos and Paranagua, located nearly 2,000km from the grain belt in Mato Grosso.

The start up of the new terminal is expected to ease freight costs for producers in the region.