Sep 29, 2011

The BNDES has approved a bridge loan in the amount of R$ 1.7 billion for Logum Logistics. The resources will be utilized not only to implement a pipeline for transporting ethanol but also to install product collection centers.

The logistic system for transporting ethanol to be implemented is part of the Growth Acceleration Program (PAC) and comprises 1,330 km of pipelines with a transportation capacity of 20.8 million cubic meters per year as well as ten ethanol storage terminals.

The system will link the main ethanol producing regions (in the states of São Paulo and Goiás, Triângulo Mineiro, south and southeast of Mato Grosso do Sul and northern Paraná) to consumption centers in Greater São Paulo and Rio de Janeiro, as well as ports Ilha D’Água (RJ) and Caraguatatuba (SP), for export and / or shipment of ethanol to other consumption centers in the country.

The bridge loan will finance the first stage of the project — which covers stretches in Ribeirão Preto-Paulínia, Uberaba-Ribeirão Preto, and Anhembi-Paulínia — and the terminals in Ribeirão Preto, Uberaba, Anhembi and Araçatuba.

The investment will provide a quicker and more reliable means of transport, with the lower costs and less pollution compared to highway transport, which is currently the most common form of transport of this product.

In addition, optimizing the flow and product storage in regions closer to consuming centers will help reduce market volatility by providing a more regular supply and price stability. The project will also contribute to consolidating Brazil in the international market for producing and marketing ethanol.