Cargo handling at Brazil’s largest private port terminal Tiplam at Santos is expected to grow 6.8% to a record 12.5 million tonnes in 2023, driven by the country’s record grain production and strong demand for agricultural commodities from China.

With flexibility to move sugar, soy, corn and fertilizers, the terminal’s owner anticipates challenges as corn and sugar will compete for space early in the second half.

Denilson Fernandes, general manager of southeast terminals and ports at VLI, the owner of Tiplam, said the company is prepared to handle more volumes this season.

“Even with the super harvest … we have the flexibility and can prioritize the loads according to the queues of the ships,” Fernandes said in an interview.

Brazil will produce more than 154 million tonnes of soybeans and over 125 million tonnes of corn this season, which is unprecedented for both crops.

For sugar, supply will grow almost 5% to some 35.1 million tonnes in the country’s center-south, the world’s largest sugarcane belt.

Over the years, lack of on-farm storage space and insufficient rail cargo services have made Brazil less efficient than other agricultural commodities exporters.

Despite logistical challenges, the country is the world’s biggest soy and sugar exporter thanks in part to the construction of more private terminals, use of river barges and development of northern ports.

Fernandes said Brazil is currently exporting its massive soybean crop and that heavy flow will continue through mid-July, when corn and sugar start coming in.

The sugar shipping season will peak between June and September while much of Brazil’s corn will be shipped in August and September.

Tiplam’s total cargo handling capacity is for 17 million tonnes, including 6.5 million tonnes for fertilizers. All the grains shipped through the terminal arrive by train, Fernandes said.
Source: Reuters (Reporting by Roberto Samora Writing by Ana Mano; Editing by Richard Chang)