Raízen expands fuel business in the Midwest and looking for gains in South

SÃO PAULO-Raízen, a joint venture between Shell and Cosan, on Thursday inaugurated a new oil terminal in Campo Grande (MS), consolidating a plan of 200 million reais in expansion in the sector that includes the renovation of another terminal in the region of Ourinhos (SP). Mato Grosso do Sul, Cosan is betting on the growth of the market of fuels in the Midwest, the region has registered increases of 7 to 8 percent a year in consumption, unlike mature markets as the region of São Paulo, where the performance is stabilized. In the area of Ourinhos (SP), a transport junction of the historic centre for the South of the country, the company tripled the capacity of fuel storage and implemented full rail modal seeking gains in arbitration. "We're completing investments that were planned for three years," said Nilton Gabardo, Director of new business development. According to him, the Ourinhos terminal there will be efficiency gains in transportation of biodiesel producing areas in Rio Grande do Sul to the South East market, and at the same time in the opposite direction taking ethanol from São Paulo to markets in the South, where the sugar cane biofuel consumption is growing. "The cars will come with biodiesel and will return with ethanol. Let's enjoy this reverse logistics and have reduced cost of transport in the rail modal ", stated to Reuters. Cosan invested 70 million dollars in the two terminals, most of the 200 million investment plan for the area. Other investments were in tank construction and installation of other equipment to adjust the operation changes in the sector, with the entry of a new type of diesel and after increasing the blend of biodiesel. "They entered the larger mix of biodiesel and diesel S10, then today there are six basic products, formerly there were four. As it evolves, it has to have more tanks. The biggest problem was that accommodate logistics infrastructure, "said Gabardo. Mato Grosso do Sul, the transport is mainly by road, but there will also be reverse logistics, carrying gasoline and diesel to the place and bringing ethanol to the Southeast and South, since the Midwest produces more ethanol than it consumes.