Louis Dreyfus Company Invests in the Construction of a Sugar Transshipment Terminal in Pederneiras
São Paulo, Brazil, November 19, 2024 – 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.
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About Louis Dreyfus Company
Louis Dreyfus Company is a leading merchant and processor of agricultural goods, founded in 1851. We leverage our global reach and extensive asset network to serve our customers and consumers around the world, delivering the right products to the right location, at the right time – safely, reliably and responsibly. Our activities span the entire value chain, from farm to fork, across a broad range of business lines (platforms): Carbon Solutions, Coffee, Cotton, Food & Feed Solutions, Freight, Global Markets, Grains & Oilseeds, Juice, Rice and Sugar. We help feed and clothe some 500 million people every year by originating, processing and transporting approximately 80 million tons of products. Louis Dreyfus Company is active in over 100 countries across six geographical regions, and employs approximately 18,000 people globally.
For more information, visit www.ldc.com and follow us on social media.
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