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Cargill, LDC among winners of Brazil port auction
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Cargill, LDC among winners of Brazil port auction
May 25, 2025 10:24 PM

SAO PAULO, April 30 (Reuters) - Cargill, BTG Pactual

Commodities and a consortium formed by Louis Dreyfus and

Brazilian grain trader Amaggi have won rights to operate three

separate terminals at Paranagua port on Wednesday.

The competitive auction, which involved several bidders,

highlights the importance of improving Brazilian logistics in

the context of a global trader war.

At an auction at the Sao Paulo Stock Exchange, the companies

offered a combined 855 million reais ($151 million) for the

rights to operate three separate Paranagua areas for 35 years.

The interest comes as global grain traders brace to deal

with more demand for Brazilian agricultural commodities from

countries like China, which is engaged in a trade war with the

United States.

After the auction, the company's are expected to increase

the volume of Paranagua's vegetable bulk shipments by 4.8

million tons by year, representing a 47% gain, the Port's press

office said.

Cargill beat Arco Norte Infraestrutura e Logistica with a

bid of 411 million reais for the PAR 15 terminal, the highest

amount at the auction.

Paulo Sousa, president of Cargill in Brazil, said in a

statement the company is pleased to have won rights to operate

that terminal for another 35 years.

Paranagua is strategically located to receive products like

soymeal from Cargill's first soy processing unit opened in

Brazil, which is based in Ponta Grossa and just 214 kilometers

(133 miles) away from the port.

The ALDC consortium, comprised of Louis Dreyfus Company and

Amaggi, won the PAR25 port area.

In a statement, Amaggi and Dreyfus said they are committed

boosting shipments through Paranagua, one of Brazil's key grain

export hubs along with Santos port.

Total investments in the three port terminals are expected

to reach 2.4 billion reais ($423 million), according to data

from the Brazilian federal government.

($1 = 5.6781 reais)

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