March 14, 2013

Enormous Intermodal Grain Complex being built at Rondonopolis

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

We had the opportunity to visit an enormous construction site just 25 kilometers south of the city of Rondonopolis, Mato Grosso along highway BR-163. When completed, it will be the largest grain processing/storage/transportation complex in Latin America. The complex is situated at the terminus of the Ferronorte Railroad, which is the only rail line in Mato Grosso. Eventually the rail line will progress northward through the heart of Mato Grosso and end at the Amazon River, which is about 2,000 kilometers north of Rondonopolis, but for now, this is all the further it has reached.

In this complex there will be new soybean crushing facilities, biodiesel plants, storage and loading facilities, fertilizer warehouses, etc. There will eventually be thousands of workers in the complex which will receive thousands of trucks per day delivering soybeans and corn. The Ferronorte Railroad, which is operated by American Latina Logistica, already has a duel set of tracks that loop through the entire complex which covers hundreds of hectares. There are currently thousands of workers on multiple construction sites within the complex which represent billions of dollars of investments.

Inside the complex, Noble Brazil is already building a soybean crushing plant, which will be the third crushing plant in Rondonopolis after Bunge and ADM. When fully operational, these three plants will have a capacity of approximately 20,000 tons per day. The complex will also have grain terminals operated by Cargill, Bunge, ADM, and Maggi. It is very impressive and I will put pictures of the complex in future reports.