May 22, 2015

ADM announces major expansion of Argentinian port facilities

ADM has announced an investment in substantial improvements and expansions of its port facilities in Puerto San Martin, Santa Fe, Argentina.

The funding will boost the company's capability to export grain and other agricultural products from the region. The improvements, which include the construction of a new berth for barge discharge and the addition of storage capacity, are expected to be completed by early 2016.

Currently, export facilities in Puerto San Martin have an annual throughput of approximately two million tonnes. The investment will raise annual capacity by 25%, to 2.5 million tonnes. This increase helps ADM to reduce reliance on third-party facilities, which hinder the company's efforts in delivering more exports from Paraguay.

Furthermore, the expansion will establish a seamless network for ADM to export bigger volumes of products. Thus, the company will be able to provide an identity-preserved supply chain, from origination to processing.

"The improved Puerto San Martin facility, along with our export elevator just downriver in Arroyo Seco, (as well as) our deep water port at Bahia Blanca, will have a total annual throughput capacity of 7.5 million tonnes, giving us the ability to take full advantage of expanding agricultural production in Paraguay and Argentina," Joe Taets, the president of ADM's Agricultural Services business unit, said.

"From acquiring full ownership of our Black Sea terminals, to quadrupling the capacity at our port in northern Brazil, to this enhancement of our capabilities in Argentina, we are executing on our plan to diversify and expand our trade and origination territory."

The expansion follows an earlier announcement by ADM that it is buying over complete ownership of North Star Shipping and Minmetal. The acquirement is expected to enhance ADM's European origination and transportation network via the addition of export facilities at the Port of Constanta, Romania.

In February, ADM reached an agreement to sell to Glencore plc a 50% stake in its export terminal in Pará, Brazil. In addition, the terminal's capacity will quadruple to six million tonnes.