Paper mills experience new cycle of investments in logistics
With projects totaling at least R$3 billion, including new port and railway terminals, and the purchase of hundreds of railcars - not including minor expenditures and those related to Suzano’s Cerrado project -, the Brazilian pulp and paper industry is experiencing a new cycle of robust investments in transportation and logistics.For the next few years, according to estimates from sources in the industry, other R$3 billion in investments in new railway lines and other projects will get off the drawing board, continuing the movement that has consolidated forest-based industry as one of the main investors in transportation infrastructure assets in Brazil.The search for efficiency, reflected in more reduction of the already competitive pulp cash cost in the country, the definition of carbon footprint reduction targets, and the installation of new mills are the main drivers of these initiatives.These investments are also driven by the limited railway network in a large country that tops the world ranking of pulp exports, with 19.1 million tonnes shipped last year, according to the Brazilian Tree Industry (Ibá)."The infrastructure deficit is the result of mistakes that Brazil has made for a long time. Some sectors looked for their solutions, and this was not only the case for the planted trees sector. To increase competitiveness in the world, it was also necessary to look outside," said Paulo Hartung, Ibá’s president.Suzano, the largest producer of market pulp in the world, accounts for almost half of the disbursements made in large logistics projects in recent years, with R$1.3 billion in two new port terminals in Santos (São Paulo) and Itaqui (Maranhão), which started operating in 2020 and 2022."Investing in logistics is part of strategic planning," said Leonardo Grimaldi, the company’s executive in charge of pulp, marketing, and logistics. "It is part of the relentless search for the lowest production cost, coupled with the best service for our customers."In Santos, Suzano has installed a mega-complex to handle pulp in partnership with DP World, with an annual volume expected to reach 3.3 million tonnes. In Itaqui, a new berth was inaugurated last year to handle pulp produced in Imperatriz (Maranhão). "Whenever possible, we try to avoid using general terminals in the port and have our own instead," the executive said.Production from the Mucuri (Bahia) and Aracruz (Espírito Santo) units, on the other hand, is shipped from Portocel, a terminal...
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