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Wednesday, 24 May 2017

ADM invest $85 million in Santos facility

ADM do Brasil has completed its $85 million expansion plan at the port of Santos and so now holds one of the biggest grain terminals in South America, capable of handling around 8 million metric tonnes of grain per annum, up 33% from the previous capacity of 6 million mt per year.

Two years ago, the Special Ports Ministry (SEP) in Brazil granted ADM do Brasil a 20-year extension to its license to operate various grains, including corn and soya, at its Ponta da Praia terminal in Santos on the right bank, close to the Libra Terminais container terminal (Terminals 35 and 37).


Since being given the green light ADM has wasted no time at all in pushing ahead with its ambitious expansion plans.

Scott Fredericksen, the president, ADM South America said that the completion of the new investments coincides with ADM's 20th year of operations in Brazil. It started in Santos back in 1997 by buying out several local Brazilian owned processing units and silos.

"ADM is celebrating 20 years in Brazil in 2017, and there is no better way to honour that milestone than with the completion of this major improvement project," said the Archer Daniels Midland (ADM) executive. "Our upgraded terminal in Santos, with increased unloading and loading capabilities, allows us to connect Brazilian grain to world markets more efficiently while setting the industry benchmark for sustainable operations, and creating jobs in the region."

The actual covered storage capacity at the Ponta da Praia facility has risen from 172,000 to 194,000 mt and ADM officials say that new, modern equipment will reduce dust particle emissions by 80 % in that section of the port which is very close to residential areas and has been targeted for many vociferous complaints in recent years, regarding noise, smell and air pollution.

The creation of 100s of new jobs will assuage some vocal critics of the ADM facility as will the new environmental measures.

"In 20 years, we have expanded to become one of the largest agribusinesses in Brazil, and with good reason: Brazilian farmers play a critical role in feeding an expanding global population," said Luciano Botelho, ADM's president, South American Oilseeds.

Today ADM employs some 3,300 workers in Brazil, including more than a thousand at another grain terminal in Bacarena, in Para state in the far north of Brazil, where the capacity is being quadrupled from 1.5 million metric tonnes per annum up to 6 million mt.

ADM executives say that they may also invest, with other partners, in enhancing rail links into the terminal a Ponta Praia, if the government in Brasilia agrees to the contract extension being extended by an extra 10 years, up to 35 years instead of the current 25 years.


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