Brazilian minerals-focused port terminals receiving new investments

Brazilian port terminals focused on minerals are attracting growing investments. 

CS Infra, part of Brazilian group Grupo Simpar, is investing up to 800mn reais (US$312mn) through 2025 in its terminals ATU 12 and ATU 18 at Aratu port in Bahia state.

With an area of approximately 163,000m², ATU12 handles bulk minerals, such as fertilizers, copper concentrates, manganese ore and petcoke. 

ATU18, which occupies about 52,000m², specializes in handling vegetable bulk such as soybeans and corn.

CS Infra won the leasing contract to operate the terminals in an auction in 2020. Earlier this month, federal development bank BNDES approved guarantees totaling 246mn reais for CS Infra’s arranged financing for its investment plans in the terminals.

Meanwhile, Cedro Participações, the holding company of iron ore miner Cedro, won in December the auction for the leasing contract for the ITG02 terminal at Itaguaí port in Rio de Janeiro state.

Focused on iron ore, the 35-year contract entails investments of 3.53bn reais.

Cedro will be responsible for construction of port infrastructure to handle iron ore. The terminal is located near major mining operations and connected by rail to the mining powerhouse state of Minas Gerais.

"What motivated our investment decision in this terminal was the expectation that iron ore exports will remain strong in the coming years. Our terminal will have [handling] capacity of 25Mt/y, which is much higher than our production, and the intention is for this terminal to be used by small and medium-sized mining companies that want to export their products," José Carlos Martins, a Cedro board member, told BNamericas.

According to Martins, the company expects to receive all licenses for construction this year and plans to start works in late 2025 or early 2026.

Other mining investments

Investment in logistics by mining companies is expected to reach US$10.3bn in 2024-28, according to sector association Ibram.

By comparison, iron ore projects are expected to see investments of US$17.3bn in the same period, and socio-environmental initiatives in the mining sector, which include clean energy projects, are forecast to attract investments of US$10.7bn, according to Ibram.

Along with ports, mining companies are also investing in railways.

Recently, mining giant Vale reached an agreement with the federal government on the early renewal of the company's concessions for the Carajás and Vitória-Minas rail lines.

The accord is expected to generate fees of 17bn reais to be invested in freight rail projects in the coming years. 

The Carajás railway connects the states of Pará and Maranhão with São Luís port and is used by Vale to transport iron ore. Vitória-Minas passes through the states of Minas Gerais and Espírito Santo, also transporting iron ore.

Meanwhile, Bahia Mineração (Bamin), controlled by Eurasian Resources Group, is expanding the Pedra de Ferro iron ore mine in Bahia state and building the Porto Sul deepwater port and a section of the east-west railway known as FIOL, to connect the mine with the port.

To complete the entire Bamin logistics project, including the FIOL railway, at least US$5bn is needed, a person involved in the plans told BNamericas previously on condition of anonymity.