The agricultural firm Louis Dreyfus announced on Tuesday the construction of a new transshipment sugar terminal in Brazil's Sao Paulo State, which is expected to be finished by mid-2025. Executives from the company claim that the new terminal will increase their railway transshipment capability by 1,000,000 metric tons each year.

The cost of transporting sugar to Santos is higher because the state of Sao Paulo relies almost exclusively on roads.

According to the company, the new transshipment facility will make Louis Dreyfus more competitive in its sugar trade business and likely lead to an increase of volumes coming from Brazil’s sugar belt.

Guilherme Correia, director of Louis Dreyfus North Latam, said: "We are investing in the export logistics flow at both the port level and in transshipment."

Brazil is the largest sugar producer and exporter in the world, accounting for 70% of global sugar exports.

The firm already operates in Pederneiras a terminal for grain received by waterway. (Reporting and editing by Louise Heavens, Franklin Paul, and Roberto Samora)

(source: Reuters)