(Adds Cargill's emailed statement)
SAO PAULO, April 26 Cargill Inc is part of a
group of grain trading companies analyzing whether to build
Brazil's Ferrogrão railway, which could require investments of
up to 15 billion reais ($4.8 billion), O Estado de S. Paulo
newspaper reported on Wednesday.
Luiz Pretti, Cargill's chief executive officer in Brazil,
told Estado in an interview that members of the consortium that
could participate in the Ferrogrão project are in touch with the
government to discuss its feasibility.
Ferrogrão railway would allow Brazilian grains to be shipped
out of ports in the north of the country, Estado said. Pretti
reiterated Cargill's plans to invest up to $127 million in the
country this year to grow operations amid a bumper soybean and
Running about 1,100 kilometers, Ferrogrão will link grain
producing regions of the Center-West to the Port of Miritituba,
in Pará state, curtailing the need to travel along a troublesome
road that still has long unpaved section that makes passage
nearly impossible during rains.
Cargill press representatives confirmed Pretti's remarks to
the newspaper in an emailed statement.
The Brazilian unit of U.S.-based Cargill invested 3.8
billion reais in the country over the past six years, Estado
wrote, adding Latin America's largest economy is Cargill's
second most important market behind the U.S for investments.
Cargill's consolidated net income jumped 61 percent to 670
million reais last year as Brazil's agribusiness segment
"continued to expand and has been, for the most part, resilient
to economic challenges," according to its financial statement
published earlier in Estado.
Cargill originated, processed and traded 24 million tonnes
of agricultural products in 2016, a 14.3 percent drop from the
The company told Reuters crop failure impacting corn and
soybeans, two of the main commodities it trades, led to 2016's
Cargill directed 75 percent of the volumes produced in
Brazil to export markets.
"The fall in the volumes traded ... was compensated by
higher product mix efficiency and assertive financial
positions," Cargill told Reuters.
Net revenues were virtually stable at 32.3 billion reais
Earlier in April, Brazil's agricultural statistics agency
Conab raised the estimate for the country's 2016/2017 soybean
crop for a fourth time. The agency also rose corn output
forecasts in the season.
($1 = 3.1476 reais)
(Reporting by Ana Mano and Gustavo Bonato; Editing by Bernard