CHS is partnering with a Brazilian railroad to build a $440 million grain terminal at Latin America’s largest port.
The Minnesota-based agriculture cooperative announced a 50/50 joint venture with the Rumo railroad operator on Thursday to construct the terminal at the Port of Santos, south of São Paulo. The proposed facility would handle up to 9 million tons of grain and 3.5 million tons of fertilizer annually.
The investment comes amid Brazil’s rise as a major agricultural exporter, especially to China, which has put pressure on American farmers’ access to global markets. Brazil is the top soybean exporter and second-largest corn exporter in the world, shipping just a little less than the United States last year.
“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,” said John Griffith, executive vice president for agriculture and CHS Hedging.
Once the project receives full approvals, it will take more than two years to construct. CHS will cover half the cost.
Rumo first announced the project in March and said it would cost 2.5 billion Brazilian reais, or roughly $440 million, while teasing the potential for partnerships.