SÃO PAULO, Brazil – 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
“By investing in rail transshipment, we will give mills an alternative and more competitive logistics option, in relation to road freight. The facility will also boast high operational efficiency, leveraging the expertise of the existing grain terminal at the site,” says João Paiva, LDC’s Global Head of Ports & Waterways. “In fact, we see already strong traction and interest from many mills in the region and beyond for rail logistics, which also provides greater operational reliability.”
Expected to be completed in mid-2025, the terminal will contribute to LDC’s competitiveness by enabling increased traded volumes and market share expansion in the country’s Center-South agricultural region. Upon commencement of operations, the company will increase its annual capacity for sugar merchandizing by rail by 1 million tons.
The terminal in Pederneiras will also operate in synergy with operations at Terminal Exportador de Açúcar do Guarujá (TEAG) export terminal, where LDC operates through a joint venture
“The Brazilian market has been growing in relevance on the international stage. Mills in the sugar-energy sector are investing more in crystallization capacity. With increased sugar production, the country will need to access international markets. That’s why we are investing in both port and transshipment export logistics,” explains Guilherme Correia, LDC’s Head of Sugar for North Latin America.
In line with the company’s strategy to further strengthen its merchandizing business, including by increasing our capabilities and physical presence in key markets, the investment in this sugar transshipment terminal also reflects a natural move by LDC to generate synergies between its business lines, driving logistical efficiency in its operations to be the partner of choice for its customers.
In Pederneiras, LDC has been transporting grains at the multimodal port for almost 20 years, connecting fluvial and railway flows. With the start of sugar operations, the greater flow via rail will enable the company to use entire trains (with 80 railcars) daily, thus increasing volumes transported to the Port of Santos and optimizing costs through operational synergies.
