Sao Paulo: Louis Dreyfus Company (LDC) is investing in the construction of a sugar transshipment terminal in Pederneiras (São Paulo State), that will comprise a warehouse with static capacity of 90,000 tons and receiving and shipping throughput of 500 tons/hour. The new facility will provide a new logistics mode for mills located in the Center-South of the country, by allowing the flow of sugar production to the Port of Santos via rail, whereas currently mills in the region almost exclusively transport their production to the port by road, as per the company press release.
The terminal is scheduled to be ready by mid-2025. After the terminal comes into full operation, LDC will have the opportunity to increase its annual capacity of sugar transported via rail by 1 million tons, further consolidating its position in the Center-South agricultural market.
The terminal will be closely related to the Terminal Exportador de Açúcar do Guarujá (TEAG) export terminal, in which LDC holds a share through a joint venture. That will increase the flow of sugar from mills to international markets.
Brazil’s sugar production is increasing as mills invest more in processing capacity. “To meet growing international demand, Brazil needs better export logistics,” said Guilherme Correia, LDC’s Head of Sugar for North Latin America. “This is why we’re investing in facilities like this terminal and other port infrastructure.”
LDC has been operating a multimodal grain terminal in Pederneiras for almost 20 years, combining river and rail transport. The sugar operations on site will be used to run full daily trains of 80 railcars, which will increase volume for the Port of Santos with reduced costs.
Through this new terminal, LDC is executing a strategy aimed at improving and strengthening its presence in key markets, with a focus on operations and product offerings that ensure reliability as a partner for customers, while enabling Brazil’s development into a key player in global sugar trading.
