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New rail service to help boost throughput at Santos' Embraport in Brazil

EMBRAPORT in Brazil's port of Santos has reported the movement of 3,400 TEU in three months via the three new rail services to Vale do Paraiba, Sumare and Suzano.

This is the result of a partnership with Brazilian rail operator MRS Logistica with 1,800 TEU being transported on the new services in June alone.



The facility's prospects have improved with the addition of regular rail service-the mixed gauge line is 2,952 feet long inside the terminal and has the capacity to handle up to 200,000 TEU annually. The spur line can also service double stack well cars.



The 3,400 TEU account for two per cent of Embraport's traffic and the terminal is hoping to handle 10 per cent of all its throughput via the rail freight system over the next few years, Newark's Journal of Commerce reported.



The dominant player in the port of Santos over the past 15 years has been Santos Brasil's Tecon1 facility, but the addition of two newcomers in 2013, Embraport and Brasil Terminal Portuaria, has seen Tecon1's dominance challenged. According to Codesp, the Santos port authority, Tecon1 handled 52 per cent of the port's overall throughput at the end of 2013, while Embraport handled six per cent and BTP three per cent.



Competition tightened in 2014, and in the first six month of 2015 figures showed BTP with 31 per cent of the market share, with Embraport at 14 per cent, and Tecon1 barely in the lead with 34 per cent.



BTP is a joint venture between APM terminal and Terminal Investment Limited, while Embraport is a venture between DP World and Odebrecht TransPort.



CEO of Embraport, Ernst Schulze, highlighted the operation's promising beginning and believes the new rail services could shift momentum in the terminal's favour. "We are already becoming faster at loading and unloading containers and our goal is to reach 7 per cent of volume by the end of the year,?he said.



One of the reasons Embraport launched the service is that it has a long-term contract with LG Electronics. It is transporting 500 TEU per week arriving from Manaus to be distributed around the state of Sao Paulo for the South Korean electronics giant.



Currently, Embraport has just four regular services, only one of which is deep-sea: the super-joint ASAS which is Brazil to the Far East and includes Maersk Line, Safmarine, Hamburg Sud, CSAV, CMA CGM, China Shipping, Hanjin, Hapag Lloyd and CCNI.
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