BRAZIL- Bunge Global SA, a prominent agribusiness company, and Zen-Noh Group have announced a joint venture agreement to purchase a 50% stake in a grain terminal at the Port of Santos to enhance logistical capabilities.
According to a securities filing reported by Reuters, the acquisition, valued at 600 million reais (US$115.3 million), involves buying the stake from Brazilian rail operator Rumo.
Rumo’s binding agreement to sell its share in Terminal XXXIX marks a significant transaction at Latin America’s largest port.
The terminal, with a storage capacity of 135,000 tonnes of grain, will now see Bunge and Zen-Noh Grain Corp. (the US subsidiary of Japan’s Zen-Noh Group) each holding an equal stake through their joint venture.
The remaining 50% of the terminal will continue to be held by Brazilian food and fuel processor Caramuru Alimentos, one of the country’s largest grain crushers.
The acquisition aims to enhance Bunge and Zen-Noh’s logistical flexibility in a crucial export corridor in Brazil. The firms emphasized the importance of this deal in optimizing their supply chain operations and strengthening their export infrastructure.
“The companies expect to obtain larger logistical flexibility in a key export corridor in Brazil,” Bunge and Zen-Noh stated.
Bunge noted that while the deal has been agreed upon, it is still subject to the usual regulatory approvals. Completing this acquisition will significantly increase both companies’ efforts to expand their footprint and capabilities in Brazil’s vital agricultural export sector.
Moreover, Rumo said the sale reinforces the firm’s strategy to improve its cash position and concentrate efforts on projects to boost capacity and make its railways more competitive.
In a related development, Rumo and supply chain solutions provider DP World reached an agreement in March to develop a new port terminal for grains and fertilizers at the Port of Santos.
This project, located at DP World’s private-use terminal on the port’s left bank, is expected to significantly boost the port’s handling capacity, adding 9 million tonnes of grains and 3.5 million tonnes of fertilizers annually.
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