Bunge and Aceitera General Deheza S.A. (AGD) announced they will jointly invest US$100 million in Puerto General San Martin’s T6 industrial complex and port terminal. Puerto General San Martin is an inland port in Argentina that sits on the Paraná River.
Currently, the terminal is capable of unloading 600 railway cars and more than 1,200 trucks per day. It is used to load seafaring ships with dry bulk and vegetable oils, and, according to AGD, it handled 13 million tons of exports last year. The terminal is jointly operated and managed by both Bunge and AGD.
The investment includes a three-year plan that aims to increase the operational capacity of the complex.
“We have been working hand-in-hand in pursuit of National Development,” said Enrique Humanes, chief executive officer of Bunge’s Southern Cone. “We believe that the key to achieving a sustainable and harmonious community development regionally and nationwide lies in providing solutions between all the actors who are a part, towards the achievement of objectives and joint benefits.”
AGD was founded in 1948 and is a privately-owned oilseed crushing company in Argentina. The agribusiness crushes more than 20,000 tons of oilseed daily, has the capacity for 3.3 million tons of bulk storage and employs of 2,500 people.
Bunge Argentina is a subsidiary of Bunge Ltd., a global agribusiness company, which includes fertilizers, food and energy, among other businesses, with global operations and strategically distributed assets, addressing the whole agricultural-food industry chain spectrum.
The investment of T6 terminal with AGD is the latest in a series of transactions for Bunge, which has been partnering with companies across the world as it seeks to grow its business.
Bunge Agribusiness Singapore Pte Ltd., a wholly owned subsidiary of Bunge Ltd., and Oleo-Fats, Inc. (OFI), a wholly owned subsidiary of D&L Industries, in September entered into distribution agreements for the food service, retail and food processing industries in the Asia-Pacific region.
In August, Cargill and Bunge announced their intention to enter into an agreement under which Bunge will acquire from Cargill two oilseed processing plants and businesses in the Netherlands and France.
In July, Bunge announced a joint venture expansion with Amaggi in São Paulo, Brazil, to operate on the route known as the Northern Corridor via the Tapajós waterway. Also in Brazil, Bunge acquired Moinho Pacifico, a Brazilian wheat flour miller, in August 2015.
In June, Bunge announced a joint venture with Wilmar, a crush operation in Vietnam, to further expand into Asia.
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Never underestimate the capacity and willingness of the labour syndicates and others to introduce delays and graft even in private industrial projects. And then there is the yet unknown impact of continuing inflation which seems to drive costs well above originally planned, particularly where delays are involved. The business friendly government might wish to believe they are but it's the rest of the country that drives how things are done and not done, and the business friendly government has done precious little to reign in high tax levels and other factors that are actually anti-business. Gushing optimism only goes so far here.Nov 01st, 2016 - 11:21 pm +1
A 3-year plan and US$100 million in investment....Nov 01st, 2016 - 08:54 pm 0
Since this is Argentina, it will ultimately take 12 years, cost US$900 million, and operate with less efficiency and lower capacity than the previous installation!!
Since this is Argentina, it will ultimately take 12 years, cost US$900 million, and operate with less efficiency and lower capacity than the previous installation!!Nov 01st, 2016 - 09:42 pm 0
If it was a government project you might be right. However, it is an industrial project and in my experience they tend to keep a close eye on their investments and ask questions if things don't go to plan. They will do what they can to keep this project on-time and within budget. Since they now have a more business-friendly government they should stand a better chance of achieving this.