Brazil’s multimodal logistics solution for sustainable supply

February 3, 2023 – 12:20 pm

A new integrated multimodal logistics solution is being developed in Brazil: the Alcântara Port Terminal (APT). Comprising a deep-water port (25 m) and a private railway, it will not only offer an efficient transport of commodities but also reduce emissions and offer green hydrogen production. Experts from DB E.C.O. Group will contribute their know-how to this infrastructure project, which will benefit the Brazilian economy and global logistics alike.

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The Alcântara Port Terminal (APT) comprises a deep-water port and a private 520 km railway (the EF-317), operated in open access mode, which links the North-South railway backbone to the new port, and to a complex for generating clean energy and green hydrogen.

Peter Mirow, Executive Director Brazil (left), and Carsten Puls, Executive Director Latin America (right), presenting the project in Brasilia on January 24, 2023
The APT and EF-317 project that DB E.C.O. Group is set to develop with GPM and other Brazilian partners serves all 17 UN Sustainable Development Goals (SDGs)
Gustavo Gardini, Head of Global Partnerships, talked about the significance of the project for global logistics

The only port on the eastern shore of Baía de São Marcos will have a natural depth of 25 m. It is in the area of greatest expansion of Brazilian agribusiness, being a strategic alternative for producers in the Midwest, North and Northeast.

The North-South railway does not yet have a direct link to a port. This logistics solution will create a new transport corridor for agricultural commodities, with an identified demand potential of 80 million tons per year in the hinterland in addition to ample demand for mineral commodities. A study developed by the World Bank identified this project as the best logistics solution for the North-South railway.

Innovate and preserve

The efficient transport of commodities, and the economies of scale generated by the use of larger ships, which can access the 25 m port, not only brings benefits in terms of saving CO2 emissions but also offers cost savings on the transport.

Included in the planning is the production of green energy, since wind, solar and tidal energy are abundant in the region. The energy will serve the port and railway, as well as allowing the production of green hydrogen. The hydrogen can be used to produce fertilizers, which can, in turn, be transported back to the agricultural production areas as return cargo for the railway.

A project of multinational significance

DB E.C.O. Group has signed an MoU with Grão-Pará Maranhão (GPM) for the joint project development, and later in the role of railway operator. The operation will be done in partnership with local partner Sysfer with DB Engineering & Consulting in a role as shadow operator.

In January 2023, the project partners were invited by the German Ambassador to Brazil, Heiko Thoms, to present the Alcântara Port Terminal and the EF-317 railway at the German embassy in Brasilia. The event was attended by several high-level officials of the Brazilian government, ambassadors of the European Union and representatives of multinational companies interested in the ground-breaking infrastructure project. Its geographic location almost on the equator makes it ideal as an energy hub for Europe as well, as it offers the shortest distance from Brazil.