CHS teams up with Rumo to build $440 million grain terminal in Brazil

CHS Inc., the largest farmer-owned cooperative in the United States, has entered into a strategic partnership with Brazilian train operator Rumo SA to construct a significant grain terminal at the Port of Santos, Brazil’s largest port. The joint venture, which both companies will share control of, is set to bolster Brazil’s already robust export capacity.

Announced in a filing by Rumo SA, the terminal will have a throughput capacity of up to 12.5 million metric tons annually, comprising 9 million metric tons of grain and 3.5 million metric tons of fertilizer. The total cost of the project is projected to be around 2.5 billion reais ($440 million), as previously stated by Rumo in March when the project was first disclosed.

This collaboration is a response to Brazil’s rapidly growing role in the global agricultural market. Brazil, currently the world’s largest exporter of soybeans and the second-largest supplier of corn, has made significant strides in expanding its export infrastructure over the past decade. The development of new terminals, particularly along the Amazon River’s tributaries, has reduced shipping costs and enhanced the competitiveness of Brazilian farmers on the global stage, especially against their U.S. counterparts.

The construction of the new terminal is expected to commence once all necessary licenses and regulatory approvals are obtained, a process anticipated to take approximately 30 months. The terminal will be located in the EMBRAPORT area, part of the DP World Group, a key region for Brazil’s agribusiness operations.

Rumo, owned by Cosan SA—an agribusiness and energy conglomerate controlled by billionaire Rubens Ometto—sees this project as a strategic investment in Brazil’s agricultural future. The partnership underscores the importance of fertilizers in enhancing crop productivity, further strengthening Brazil’s position as a leading agricultural exporter.