Fibria signs long-term agreement with DP World for port logistics in Santos (Brazil)
The pulp will be stored and loaded at the private use terminal located on the left bank of Santos, where new logistics facilities will be built
São Paulo, January 29, 2018 – Fibria, a Brazilian company and the world’s leading producer of eucalyptus pulp from planted forests, has entered into a long-term agreement with DP World Santos, a company of the international group DP World, for warehousing and port logistics services at the latter’s private use terminal (TUP) located on the left bank of the estuary of Santos on the coast of São Paulo state, in Brazil.
Port logistics facilities dedicated to the storage, handling and loading of pulp will be built on the site. Fibria estimates total investment of R$700 million, of which R$215 million is expected to be made in 2018, R$375 million in 2019 and the remaining R$110 million in 2020. DP World Santos is a wholly-owned subsidiary of DP World, a leading enabler of global commerce and one of the world’s largest logistics and container operators that is known for its efficiency.
Port operations will start up once construction of the new warehouse and other port and logistics facilities is completed, which is expected by end-2020. Under the agreement, DP World Santos guarantees port services to Fibria and its subsidiaries through 2039, with the possibility of an extension to 2042, subject to renewal of the port authorization to be obtained by DP World Santos.
“This deal represents yet another important step in Fibria’s long-term logistics strategy to ensure, combined with its current pulp shipping structure on the right bank, even greater efficiency in our exports via Santos. Once again we are leading the industry by becoming the first company in Brazil’s pulp and paper industry to conduct logistics operations using breakbulk ships on the left bank of Santos,” said Fibria CEO Marcelo Castelli.
The world leader in eucalyptus pulp production, Fibria strives to meet, in a sustainable manner, the growing global demand for products from planted forests. With annual production capacity of 7.25 million tons of pulp, it has industrial units in Aracruz (Espírito Santo State), Jacareí (São Paulo State) and Três Lagoas (Mato Grosso do Sul State), as well as in Eunápolis (Bahia State), where it operates Veracel in a joint operation with Stora Enso. Fibria has 1,056,000 hectares of forests, which include 633,000 hectares of planted forests, 364,000 hectares earmarked for environmental preservation and conservation, and 59,000 hectares destined for other uses. The pulp produced by Fibria is exported to more than 35 countries and is the raw material for educational, health, hygiene and cleaning products. Learn more at www.fibria.com.br
FleishmanHillard – Public Relations agency for Fibria