Major grain shipping from Brazilian Amazon port

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U.S. soybean and corn growers can expect even more competition from Brazil in 2014 and beyond because of major efforts by Archer-Daniel-Midland Co. (ADM).

ADM has announced it plans to ship 1 million tonnes of soy and corn through its new export terminal at Barcarena outside the port city of Belem, which is at the mouth of the Amazon River. ADM purchased the port facilities in 2012 and has plans for major upgrades and expansions. Additionally, to keep transport costs lower than truck transport, ADM has announced plans to about double its river barge fleet from its reported 260 barges currently in South America, the majority of them in Brazil.

ADM intends to raise annual volumes at Baracarena to about 6 million metric tons in five years, according to a quote of Matthew Jansen, president of the company’s oilseed business, as reported by Shruti Date Singh for Bloomberg News.

Reuters News reported that ADM will have two export terminals with the goal for each to ship similar volumes of grain and/or grain products once the Baracarena facility is expanded. ADM’s other terminal is the Santos terminal in the southeastern state of Sao Paulo.

The Baracarena terminal will definitely allow ADM to take advantage of the Panama Canal, to make shipments to Asia, once the canal expansion is completed.

The new northern Amazon port also will be utilized more by Bunge and Cargill starting in 2014.  

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