CHS buys stake in Brazilian export terminal
May 25, 2012
by Eric Schroeder
ST. PAUL, MINN. — CHS Inc. has purchased 25% ownership of TCN, a recently-formed Brazilian logistics company founded by NovaAgri, Sao Paulo, Brazil. NovaAgri will own 75% of TCN shares. In addition to the ownership investment, CHS also signed a long-term agreement with TCN, securing export terminal access at the Port of Itaqui, Sao Luis, Brazil.
“This major and strategic investment gives CHS competitive access to the fastest growing region of Brazil and further strengthens our ability to supply soybeans and corn to global customers,” said Stefano Rettore, senior vice-president, CHS South America, Sao Paulo, Brazil. “We believe demographics and income growth, especially in developing economies, means the world demand for soybeans and corn will increase. This partnership fits into CHS aspirations to expand our global commodities footprint to meet growing demand, and to continue to add value to our member-owners' investment.”
Infrastructure development at the Port of Itaqui is expected to improve market access for Brazilian growers by reducing logistical bottlenecks and, Rettore says, increased exports also will improve Brazil's trade balance.
In October 2011, TCN was awarded the right to construct one of four export terminals in the Port of Itaqui, in the northeastern Brazilian state of Maranhao by the Atlantic Ocean. Construction will begin in August of this year, with completion expected during the second half of 2013.