The Brazilian arm of Archer Daniels Midland (ADM) has recently completed expansion of its export capacity at its terminal in the Port of Santos. It can now despatch up to 8mt (million tonnes) of grain annually, which is an increase of one third, allowing the company to maintain its leading position in the agribulk sector.
The expansion, which cost $85.19 million, was undertaken two years after the port authority extended the existing concession by 20 years up to 2037, allowing ADM to handle grain, including soya and corn.
According to ports director Eduardo Rodrigues, recent changes to ports legislation, allowing concessions to be lengthened in exchange for more investment, had been welcomed. This has allowed maximum concessions to be extended from 25 years to 35 years, with extensions at the end of the expiry period to add up to a further 35 years. This applies to all concessions signed after 1993. In theory, ADM’s concession could now be extended to 2067.
“For us, it would make sense to increase investment if our concession period were extended,” he said.
Currently, ADM, in association with other operators, is looking into upgrades to rail connectivity to the terminal. However, Rodrigues stresses that this would require “considerable” levels of investment.
ADM is also close to finishing expansion of the company’s capacity at its Barcarena terminal, in Para´, which is a joint venture with Glencore. This
will eventually be able to handle 6mt, a four-fold increase over existing