November 28, 2005

Brazil's CVRD starts port expansion for soy exports

Brazilian mining giant Companhia Vale do Rio Doce (RIO), or CVRD, broke ground Friday on a project to expand its Sepetiba port facilities in Rio de Janeiro to ship soy, the company said in a statement.

CVRD and partner Companhia Docas do Rio de Janeiro-which operates the port-laid the cornerstone for a grain terminal. The grain terminal will be built at CVRD's iron ore export facility.

"It is estimated that the new export corridor for soy will add US$440 million per year to Brazil's trade surplus, as well stimulating the potential for future industrial areas related to agriculture," CVRD said in the statement.

The project, which will cost 100 million real (US$45 million), includes a 100,000-tonne storage silo and conveyor system. When completed, CVRD expects to ship 2 million tonnes of soy and other grains each year from Sepetiba.

The project is expected to be completed by 2007, with the first shipments taking place the same year.

CVRD is the world's largest producer and exporter of iron ore and iron pellets. In addition to mining interests, the company is also Brazil's largest logistics company.