April 6, 2004

Cargill Withdraws Investment In North Soy Passage

U.S. multinational firm Cargill will suspend investment in the Amazon River port of Santaram following a legal battle over the environmental impact of the development, according to Brazilian business daily Gazeta Mercantil.
 
Cargill, among others, planned to use the port to ship growing volumes of Brazil's world-leading soy exports in the coming years, cutting transport costs and easing the pressure on the overloaded main ports.
 
The port, which opened in April 2003, has the capacity to export 800,000 metric tons of soy and grains per year, and Cargill had planned to expand capacity to meet projected demand. In 2003, some 400,000 tons of soy and 100,000 tons of corn were exported.
 
According to Jose Luiz Glaser, director-general of Cargill Agricola, work was suspended "until some people are convinced that it is wise to invest in the region, in accordance with current legislation in this country and with environmental rules defined in Para (the state where the port is located)."
 
In January, a federal judge in Para suspended operations at the grains port as they lacked an environmental license to build in this Amazon region. But later in the month a higher court overturned this decision.
 
The port is expected to see a major growth in export movement once tarmac is laid on the BR163 highway, which links top-producing Mato Grosso state to the port.