BRAZIL – Minnesota-based agriculture cooperative CHS Inc. has unveiled a major investment in Brazil, partnering with Rumo, the country’s leading railroad operator, to build a US$440 million grain terminal at the Port of Santos.

This terminal, slated to be one of the largest of its kind in Latin America, marks a significant expansion of CHS’s global footprint and reflects Brazil’s growing influence in the agricultural sector.

The proposed facility, which is set to handle up to 9 million tons of grain and 3.5 million tons of fertilizer annually, is a joint venture in which CHS and Rumo will each contribute 50% of the project’s cost.

This development is a direct response to Brazil’s rising status as a major global agricultural exporter. Last year, Brazil emerged as the world’s top soybean exporter and the second-largest corn exporter, just behind the United States, significantly impacting global agricultural trade dynamics.

John Griffith, Executive Vice President for Agriculture and CHS Hedging, highlighted the strategic value of the project:

 “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.”

Griffith emphasized that the terminal will enhance CHS’s ability to serve its international customer base and respond to the competitive pressures in global grain markets.

The terminal’s construction will begin once all necessary approvals are secured and is expected to take more than two years to complete.

The development is part of a broader initiative by Rumo to expand its logistics infrastructure, including upgrades to its railway system and growth in the agribusiness hub of Mato Grosso. This investment aims to provide a safer, more competitive, and environmentally friendly logistics solution to support the burgeoning Brazilian agribusiness sector.

Rumo’s March announcement of the project estimated a total cost of 2.5 billion Brazilian reais, approximately US$440 million.

The terminal’s operations will be managed by DP World, a leading global port operator, which will oversee the facility’s day-to-day functioning.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.